Issuance of Loans for the Acquisition of Real Estate Owned by the Bank or Transferred to the Bank’s Ownership¹

Principal Terms

Loan currency

Acquisition of real estate owned by the Bank

Borrower

For a land plot: an individual citizen of the Republic of Armenia (including an Individual Entrepreneur) or a Legal Entity registered in the Republic of Armenia

in all other cases: no restriction

Loan currency

AMD

Annual interest rate² fixed (adjustable)

13.5%, for a prepayment <=29 %
13% for a prepayment =30-49%
12.5% for a prepayment >=50%

Actual annual percentage rate

13.2% – 14.4%

Overdue loan interest rate

24% annually for an overdue loan

Minimum prepayment (from real estate purchase value)

Subject to Clause 3 of the Terms

Maximum time period

20 years

Minimum time period

Not established

Maximum loan amount

Property acquisition value: prepayment made

Loan application screening fee

Not established

Monthly loan maintenance fee

Not established

Pledge procession fee**

AMD 6,000 only for thr acquisition of rural land property
AMD 71 200 for the acquisition of other property or non-rural land plots

General Terms

Requirement for the Borrower/Co-borrower

For natural persons: an individuals aged 18 and above
No restriction in other cases

Requirement for the credit history of the Borower/Co-borrower

Absence of overdue and classified liabilities upon upon loan review

Loan/Pledge ratio

Not established

Requirements for the collateral

Not established

Penalties, fines

Penalty for an overdue interest

48% annually

In case of early loan redemption

No penalty established

Loan and interest redemption

Monthly (annuity) payments

Loan issuance method

Non-cash

Availability of a bank account

Required subject to the Bank's tariffs

Application and documents accepted at

All the branches of the Bank, Customer Service Division

The expenditures pertaning to the registration of the Borrower's ownership of the pledge of property being purchased
and the state cadastral regisration of the Bank's right of pledge, as well as the unified reference request fees shall be
made at the expense of the Bank except in the cases when the Client wishes to register Borrower's title to the property
being acquired and the Bank's right of Pledge subject to expedited procedures different from the standard timeframes prescribed by law

The Client shall bear the notarization expenses pertaining to the pledge contracts.

Declaration of income (primary, secondary)

Loans shall be issued by using the Bank-approved standard form contracts.

Minimum Prepayment from Purchase Value ³

Type of property on sale

Buyer associated with the owner or an affiliated person

3 persons (buyers)

Property location

Yerevan

Regions

Yerevan

Regions

Decommissioned property and land plot

15%

10%

10%

7%

Operating property*

15%

10%

5%

3%

* A property unit shall be deemed operating provided the reference on the real estate transferred to the ownership of the Bank and the details pertaining thereto contain information about the actual exploitation of the property unit during property sale, and there is no eviction proceeding in the Bank regarding the property unit in question.

** The pledge procession fee shall be charged until the signing of the contract.  The property-related (state) cadastral registrations shall be made only for a standard time period (not subject to an expedited procedure).