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Credits provided within the framework of the state support program "Energy efficient renovation of apartments and individual residential houses"
Credit calculator
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Monthly fee֏ - ֏
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Credit Interest14.93 % - 17.21 %
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Credit amount֏
Information
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Conditions | ||
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1. Purpose of credit |
Energy efficient renovation of apartments and individual residential houses | ||
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2 . Targeted geography |
RA |
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3. Target market |
A citizen of the Republic of Armenia or a member of the latter's family[1],[2] owning an apartment (individual residential house) with the right of ownership or shared ownership in the Republic of Armenia
[1] Within the framework of this credit product "family members" are the Borrower's (Beneficiary's) father, mother, husband, spouse's parents, grandmother, grandfather, sister, brother, children, grandchildren. [2] Beneficiaries of the Program must be the owner/co-owner of the real estate being renovated or a family member of the latter. |
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4. Credit amount |
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300 000 -7 000 000 AMD for the renovation of an apartment 300 000 -10 000 000 AMD for the renovation private residential house |
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5. Credit Currency and the Type of Disbursement |
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6. Credit Term |
12 - 84 months |
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7. Credit Interest |
In case of documented income |
In case of other income |
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14% |
16% |
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| In case of submitting information on salary/ies (reference, contract, excerpt from the employment order statement or turnover on bank account for the last 3 months, Nork query, etc.) or income (notarized lease agreement signed for at least 6 months, pension). At least three-months of working experience in the mentioned organization is a requirement. |
Other income not considered as documented. |
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| It is calculated on the actual outstanding balance of the Credit amount. | |||
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8. Interest subsidy |
The state subsidizes the interest of the energy efficient renovation credits for the beneficiaries of the Program at the following rates:
The subsidized interest rate of the credit is calculated in relation to the balance of the principal amount of the credit, and the loan repayment process is carried out by the method of monthly payment of the principal amount. Loan penalties and fines are not eligible for subsidy. |
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9. Termination of interest rate subsidy |
After the credit is disbursed, the interest rate can be changed and set at twice the rate of the Central Bank of Armenia bank interest in the cases listed below, and in the case of termination of the subsidizing, the amount of subsidy provided up to that moment is subject to return to the state budget of the Republic of Armenia within the specified time and order defined in the contract : 1) In case of misuse of the credit by the Client. 2) In cases of providing false information by the Client. 3) In case the renovation of the apartment (residential house) is not completed after a maximum of 12 months after the full disbursement of the credit. 4) In case of overdue obligations for more than 90 days of monthly payments made by the borrower during the term of the credit. 5) In the case the Client receives a credit from another financial institution for the purpose of using it more than once within the framework of the Program. The subsidy ceases in case of full repayment of the credit. |
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10․ Actual interest rate |
14.93%- 17.21% |
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0-7.22%, if the interest rate is subsidized within state support program |
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11. Other requirements |
DTI (Debt to income ratio) ≤50% The ratio of total credit liabilities (average monthly, including the ones considering in the scope of this Terms as well) and net monthly salary/income, it can be calculated including income and liabilities of the family members sharing the same household |
FICO≥ 600 or N/A |
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12․ Credit/Pledge ratio |
50%-70% of the property’s estimated liquidation value as defined in accordance with the terms and conditions of credits “With real estate collateral” | ||
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13. Disbursement/ monthly fee |
N/A |
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14. Monthly service fee |
N/A |
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15. Principal and Interest payments |
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16. Security of a credit |
• In the case of 5,000,001 -10,000,000 AMD, the requirements for the collateral of the real estate being renovated, and the conditions for concluding the credit limit (Credit (main) agreement) in accordance with the terms of the "Real Estate Collateral" loan type operating in the Organization Additional pledge and/or guarantors can be required depending on credit evaluation results. |
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17․ Penalties and fines |
0.13% daily penalty, which is calculated on the amount due that month per repayment schedule, but not paid. The calculation of penalties shall start from the delay of each repayment day defined by the Repayment Schedule and stop on the full repayment day of the overdue liability. In case of the end of the credit repayment term, the amount to be paid in the given month is considered as the amount paid in the last month.
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18․ Pledging costs |
In case of pledging the real estate, the Borrower shall make the following costs as well:
In the case of loans without real estate collateral, when the loan purpose is the purchase of solar systems and other expenses, the borrower incurs the cost of registering the collateral right for the solar systems, up to AMD 10,000. *The evaluating companies cooperating with the Organization are “FinLaw” LLC, “A. G Borsa” LLC, “Oliver Group” LLC, “VMRP” LLC, “Alta Vip” LLC, “ArmEx” LLC, “Amintas Group” LLC. |
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19. Decision making term of the credit |
8 working days (after submitting all required documents) |
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20. Decision validity term of the credit |
30 working days | ||
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21․ Credit disbursement term |
5 working days after receiving the document proving the right of pledge on the pledged property for loans secured with pledge | ||
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22․ Other conditions |
Measures considered as energy-efficient are as followings:
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23․ Other conditions |
In case of loans secured with other income ased on the Branch Manager’s justifications, credits may be submitted to approval with FICO score of less than 500-599, but the client/property meets the following conditions simultaneously. 1. During the 12 months prior to the credit disbursement, the borrower does not have total 89 days delay (for credit obligations), per ACRA information[1] 2. The household’s monthly repayment volume of the credit liabilities remains the same or decreases as a result of buying credits 3. The property is liquidated, the credit/pledge ratio does not exceed 40 %. In case of deviation of the terms mentioned in this Point, further discussion on the credit may be submitted to the CC for loans up to 5 million AMD and to the Chief Operations officer for loans exceeding 5 million AMD justifying the necessity of the submission. The Chief Operations Officer may approve such loans submitted by CC for the clients who have FICO scores equal to or greater than 500, provided all other conditions are met.[1] Borrower's loans and guarantees issued after 01/01/2022 are considered as credit obligation/s |
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NOTICE
- THE ANNUAL ACTUAL INTEREST RATE SPECIFIES THE EXTENT OF THE COST OF THE CREDIT FOR A BORROWER IN CASE OF REPAYING INTERESTS AND OTHER FEES IN A TIMELY AND PROPER MANNER. THE CALCULATION OF THE ANNUAL ACTUAL INTEREST IS PRESENTED BELLOW.
- IN CASE THE BORROWER FAILS TO REPAY THE CREDIT AMOUNT AND INTERESTS IN PROPER AND TIMELY MANNER, NEGATIVE INFORMATION ON HIM/HER WILL BE RECORDED IN THE CREDIT REGISTRY.
- THE PLEDGED PROPERTY CAN BE FORECLOSED BY THE ORDER DEFINED BY LAW, IF THE BORROWER DOES NOT REPAY THE CREDIT AND INTEREST AMOUNTS IN A PROPER AND TIMELY MANNER. IN THE EVENT OF CLIENT’S FAILURE TO FULFIL THE OBLIGATIONS, WHEN CREDIT OBLIGATIONS ARE REPAID AT THE EXPENSE OF COLLATERAL, IF THE COLLATERAL IS NOT SUFFICIENT TO COVER CLIENT’S OBLIGATIONS FULLY, THE LATTER CAN BE REPAID TROUGH THE FORECLOSURE OF OTHER PROPERTY OF THE CLIENT.
- IN THE CASE OF CREDITS SECURED BY A GUARANTEE, IF THE BORROWER DOES NOT FULFILL HIS/HER OBLIGATIONS, THE GUARANTOR IS OBLIGED TO REPAY INSTEAD OF THE BORROWER, OTHERWISE THE CREDIT HISTORY OF THE GUARANTOR WILL ALSO HAVE DETERIORATE AND THE GUARANTOR MAY BE DEPRIVED OF HIS/HER PROPERTY.
The Calculation of the Annual Actual Interest
Article 13. The formula and Explanations of AAI calculation
- The Annual Actual Interest is calculated taking into account the following formula:
Where.
i - The Annual Actual Interest(AAI).
A -The Credit amount (The primary credit amount disbursed by the creditor to consumer).
n - The number of the credit repayment.
N –The number of the last credit repayment.
Kn- the credit repayment amount.
Dn- The period between the credit disbursement and credit repayment dates expressed by the number of the days.
i -the actual annual interest can be calculated, if the other data of the equation is known from the Credit Contract etc.
Article 14. The Calculation of the Actual Annual Interest
1. The Actual Annual Interest is calculated at the time of signing the Credit Contract, assuming, that the Credit Contract will be effective in the manner specified by the Contract and the Parties who signed the Credit Contract shall fulfill their liabilities in a proper and timely manner.
2. In case if the Credit Contract specifies provisions which allow deviations and changes in the number and extent of interests and/or other fees included in the total crediting cost of the consumer and it is impossible to identify the number of changes, the Annual Actual Interest shall be calculated so as the interests and/or other fees included in the consumer’s total crediting cost shall be fixed and applied till the end of the Credit Contract term.
3. The following principles are effective in case of calculating the actual annual interest (upon necessity):
1 In case if the credit maximum amount is not specified by the Credit Contract, the disbursed maximum credit amount is one million AMD.
2) If the Credit Contract specifies that the consumer can receive the credit amount part by part, or can choose the date of the credit disbursement, then it’s considered, that the credit amount was disbursed to the consumer totally at the moment of contract signing.
3) In case if the Credit Repayment Schedule or other terms and conditions of the credit repayment are not specified by the Credit Contract, the deadline for the credit repayment is one year.
4) In case if the credit contract defines more than one credit repayment term, the credit repayment shall be fulfilled in the nearest term defined by the Credit Contract, if there is not prescribed anything else by the Credit Contract.
4. The Central Bank, in accordance with its legal acts, can define explanations and samples of AAI (Annual Actual Interest) calculation and formula specified by Article 13.
ATTENTION
WHEN APPLYING FOR THE CREDIT, THE CREDITOR WILL PROVIDE INDIVIDUAL BULLETIN ON ESSENTIAL TERMS OF THE CREDIT, IN WHICH THE INDIVIDUAL TERMS OF THE CREDIT TO BE DISBURSED WILL BE SUBMITTED.
List of documents to be submitted by the client
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Passport/identification card (hereinafter referred to as ID card).
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Documents containing relevant information on salary/salaries (reference, contract, order statement, bank account statement, income availability or movement in the Nork information system, etc.) or income (notarized lease agreement concluded for at least 6 months, professional pension) in accordance with the loan terms.
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In case of including agricultural and/or business income in the assessment of consumer loans, the documents required in point 2 of this appendix are also required.
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In case of loans secured by real estate, also:
- Preliminary valuation report on the pledged real estate.
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In case of loans within the framework of the “Energy-efficient renovation loans” state support program, also:
- Certificate of registration of ownership of the apartment or residential house being renovated (required in all cases, in case of loans with and without collateral).
- As a result of a technical condition survey for an apartment (residential house) built before 2010, a conclusion issued by licensed persons (not older than 10 years) on the absence of 4th-degree damage (the list of licensed persons in the field of examination of the technical condition of buildings and structures is published on the official website of the Urban Development Committee of the Republic of Armenia at www.minurban.am) or an appraisal report issued by a person holding a valid appraisal qualification certificate and registered by the authorized body, which includes information on the technical condition (degree of damage) of the property being appraised.
- Photographs (electronic) of the property subject to repair, as necessary.
1. Before signing the credit contract, the Organization provides the Client with an individual bulletin of essential terms of the credit, in which the individual terms of the loan to be provided to the Client are presented.
2. The Client has the right to unilaterally terminate the credit contract without any reason within 7 (seven) working days (time for reflection) following its conclusion, returning the loan amount in full and paying interest calculated in accordance with the actual annual interest rate stipulated in the agreement.
3. In case of early repayment, the total cost of crediting for the Borrower shall be reduced proportionally.
4. The Client has the right to fulfill(repay) the obligations under the credit agreement ahead of schedule, regardless of whether such a right is stipulated in the credit agreement or not.
5. The credit interests shall be calculated based on the nominal interest rate. The credit interest is calculated on the actual balance of the credit.
6. The credit is provided to the Client within 1 business day after the signing of the contract. In cases when the fulfilment of credit obligations is secured by a pledge, the rights to which are subject to state registration, the credit is disbursed to the client within 2 business days after the state registration of the Organization’s pledge right. To receive the credit, the Client submits a statement/reference containing his/her bank/card account number.
7. The Organization informs the Client about the decision regarding the loan disbursement within one working day after the decision is made. The Organization can inform the Client about the decision made regarding the disbursement of the loan on the territory of the Organization, through a phone call or an e-mail.
8. To receive the loan, the Client submits a statement/reference containing his/her bank/card account number. The credit amount is transferred to the Client’s bank/card account on the day scheduled for credit issuance.
9. The Organization sends the information about the Client to the Credit Bureau within 3 (three) working days, and the current information about the loan is regularly updated during the entire term of the loan. The Client’s credit history is formed in the Credit Bureau based on the data received from all lending financial organizations. The Client has the right to receive his/her credit history from the Credit Bureau once a year free of charge. A bad credit history can prevent the Client from getting a loan in the future. In order to avoid deterioration of the credit history or score, the client needs to make payments according to the schedule defined by the contract and exclude the existence of overdue liabilities on existing loans. Information about credit history is presented on www.absfinance.am and www.acra.am websites.
The Client’s credit score is formed based on credit history. The Client’s credit score a numerical assessment evaluating creditworthiness and solvency based on a study of the customer’s credit history which shows how responsible the customer is as a borrower. Currently, 3 types of credit scores are used in Armenia: the ACRA credit bureau calculates the ACRA and FICO scores (FICO is used in more than 90 countries), and lending financial institutions can also use a credit score calculated based on their own scoring system. Each type of score has its own characteristic assessment range (for example, the FICO score average is between 300 and 850), and the closer the client's score is to the maximum, the better.
The factors that affect the credit score are: repayment history, the credit burden, the number of loans, the length of the credit history, the type of loans used, the number of new loan applications submitted. The main steps necessary to improve the score are: make payments on time, repay overdue liabilities, reduce the amount and number of existing loans and guarantees, avoid submitting unnecessary new loan applications.
To find out his ACRA score the Client can contact the ACRA credit bureau. To find out the FICO score or the score of the Organization's(internal) scoring system, the client must contact the lending financial institution to find out by mutual agreement.
Information on credit scores can be obtained on the websites www.acra.am and www.abcfinance.am.
10. For credit evaluation, the Organization uses an income and expense evaluation system and/or an internal creditworthiness evaluation system and/or a FICO score. The factors that have the main influence on the income and expenses evaluation system and/or the internal creditworthiness evaluation system are: information on the Client's employment and income, their stability and periodicity, the availability of certifying documents, the amount of income, the amount and structure of expenses, including the monthly amounts allocated to the servicing of existing loans, the total amount of current loans, number of credit requests, existence of overdue obligations, etc., as well as similar information about family members and related parties. Information on the formation of the FICO score is presented on the website. The application of the above factors may vary by credit type.
In order to improve creditworthiness, the client should pay attention to improving the listed factors and avoid the emergence of the factors mentioned in point 12.
11. Factors that have positive impact on loan disbursement:
- presence of income
- satisfactory credit rating
- absence of overdue credit liabilities .
12. Factors that have negative impact on loan disbursement:
- unreliability of documents provided by the Client
- failure to submit required documents
- negative information received from the ACRA Credit Bureau and/or other specialized organization
- information that puts into question the information provided/declared by the Client to the Organization
- information on the borrower that puts into question the recoverability of the credit
- absence of security required for credit repayment
- other valid reasons.
13. The Client is entitled to communicate with the Organization through a preferred means of communication: e-mail or postal service. The electronic means of communication is the most comfortable. It is available 24/7 and is free of the risk of losing information in paper form, as well as ensures confidentiality.
14. "Your financial informant" is an electronic system that facilitates the search, comparison of services offered to individuals and the choice of the most effective option for the client. http/: www.fininfo.am/.
15. Disputes arising between the parties can be settled in court, through arbitrations operating in the territory of the RA or through the Financial System Mediator (as prescribed by the RA law on “Financial System Mediator”), located at 0010, Yerevan, 15 M. Khorenatsi Str, “Elite Plaza” business center, 7th floor, e-mail: info@fsm.am, telephone: (+37460) 70-11-11, fax: (+37410) 58-24-21. “AREGAK” UCO CJSC has not waived the right to challenge the decisions of the Financial System Mediator, which means that the Organization can in some cases, appeal the decisions made by the Financial System Mediator against "AREGAK" UCO CJSC in court.
16. To conduct a proper study of the client as defined by RA law on “Combating Money Laundering and Terrorism Financing”, the Organization may require additional documents or information based on “Know Your Client” principle.
17. For providing additional information on credit liabilities in the Organization: (statement, reference, etc.) the following tariffs are applied: provision of statement on repaid loans free of charge for once, if provided within 30 days after repayment - and if provided within 31 days or more - 5000 (five thousand) AMD (VAT included). For existing loans, the provision of information once a month during the term of the contract is free of charge to every client (borrower, guarantor/s, mortgagor/s), and provision of information more than once a month is 3000 ( three thousand) AMD (VAT included) for each client (to the borrower, guarantor/s, mortgagor/s).
NOTICE
- THE ANNUAL ACTUAL INTEREST RATE SPECIFIES THE EXTENT OF THE COST OF THE CREDIT FOR A BORROWER IN CASE OF REPAYING INTERESTS AND OTHER FEES IN A TIMELY AND PROPER MANNER. THE CALCULATION OF THE ANNUAL ACTUAL INTEREST IS PRESENTED IN THE ANNEXURE 2.
- IN CASE THE BORROWER FAILS TO REPAY THE CREDIT AMOUNT AND INTERESTS IN PROPER AND TIMELY MANNER, NEGATIVE INFORMATION ON HIM/HER WILL BE RECORDED IN THE CREDIT REGISTRY.
- THE PLEDGED PROPERTY CAN BE FORECLOSED BY THE ORDER DEFINED BY LAW, IF THE BORROWER DOES NOT REPAY THE CREDIT AND INTEREST AMOUNTS IN A PROPER AND TIMELY MANNER. IN THE EVENT OF CLIENT’S FAILURE TO FULFIL THE OBLIGATIONS, WHEN CREDIT OBLIGATIONS ARE REPAID AT THE EXPENSE OF COLLATERAL, IF THE COLLATERAL IS NOT SUFFICIENT TO COVER CLIENT’S OBLIGATIONS FULLY, THE LATTER CAN BE REPAID TROUGH THE FORECLOSURE OF OTHER PROPERTY OF THE CLIENT.
- IN THE CASE OF CREDITS SECURED BY A GUARANTEE, IF THE BORROWER DOES NOT FULFILL HIS/HER OBLIGATIONS, THE GUARANTOR IS OBLIGED TO REPAY INSTEAD OF THE BORROWER, OTHERWISE THE CREDIT HISTORY OF THE GUARANTOR WILL ALSO HAVE DETERIORATE AND THE GUARANTOR MAY BE DEPRIVED OF HIS/HER PROPERTY.