Mortgage loans

Loan type - Loan for purchasing used vehicles from the secondary market or from individuals for personal or family use, including vehicles imported within 30 days prior to application submission.

Currency - Armenian dram

Term - 1-5 years

Annual Nominal Interest Rate¹

• With income analysis: 14.9%
• Without income analysis: 16%

Minimum down payment

• Group 1* - 20%
• Group 2** - 30%

Maximum LTV (loan / market value of collateral)

• Group 1 - 80%
• Group 2 - 70%

*Group 1

Vehicles manufactured in Europe, the USA, Japan, and South Korea

**Group 2

Vehicles manufactured in other countries

¹The use of the vehicle for entrepreneurial/business activities (including as a taxi) is not permitted. If the vehicle is identified as being used as a taxi, the Bank reserves the right to require full early repayment of the loan, or to require the vehicle to be insured as a taxi at the customer’s expense (at higher insurance rates), or to increase the interest rate up to 24% (effective). The vehicle may be purchased for use (driving) by a third party. Third parties may include the borrower’s family members.

Annual Effective Interest Rate - 15.9% - 19.3%

Type of interest rate - Fixed interest rate

Maximum vehicle age at the time of lending (including used vehicles)

• Group 1: up to 7 years (inclusive)
• Group 2: up to 5 years (inclusive)

Minimum term - 1 year

Maximum term - 5 years

Minimum loan amount - AMD 1,000,000

Maximum loan amount

• Group 1: AMD 25,000,000
• Group 2: AMD 15,000,000

Loan disbursement method

• One-time
• Non-cash

Repayment method - At the customer’s choice:

• Annuity payments
• Differentiated payments

Collateral - The vehicle being purchased

Income verification - The borrower and co-borrower must provide proof of primary and/or secondary income.

• Borrower’s primary and/or secondary income
• With a down payment of 50% or more - no income verification required

Collateral valuation and insurance

Collateral valuation - Carried out by an organization cooperating with the Bank

Motor Vehicle Insurance (CASCO)

CASCO insurance of the property pledged by the client is carried out annually by insurance companies cooperating with the Bank. The insurance amount is calculated at least in the amount of the loan balance.

At the client's request, CASCO insurance can also be carried out for the value of the property in the amount of the difference between the value of the property and the loan balance, with the client paying the appropriate insurance premium.

CASCO insurance may not be required by the bank if the following conditions are met at the same time:

• the loan is provided with an income analysis,
• the down payment is 30% or more,
• the loan amount does not exceed 5,000,000 AMD.

In the event that the borrower carries out CASCO insurance on his own, the latter is obliged to ensure the continuity of insurance throughout the entire period of validity of the loan agreement. In case of failure to comply with the specified requirement, the Bank has the right to independently carry out CASCO insurance of the pledged property, charging the insurance premium from the client, and/or increase the annual nominal interest rate of the loan by 2 percentage points.

Requirements for the Borrower and Co-Borrower

Residency

Residents of the Republic of Armenia (regardless of citizenship) and individuals registered in Armenia, who have a permanent registration and/or actual residence address indicated in their identity document².

²For a non-Armenian citizen or an Armenian citizen without registration in Armenia - if the identity document does not indicate actual residence - a residence card or a registration certificate issued by the Police of the Republic of Armenia, showing the registration or actual residence address and with a validity of at least 183 days, is required.

If these documents are not available, a valid employment contract is required, with a term exceeding the loan maturity date, and the continuous employment at the current workplace must be at least 3 months.

For employees of law enforcement agencies, a document confirming actual residence may be considered as:

1. a certificate issued by a military unit operating in the Republic of Armenia, indicating the person's actual residence address (at a specific address or in the territory of the military unit) and the period of residence,
2. a certificate of income, indicating the date of commencement of service in the Republic of Armenia,
3. a military record book indicating the date of military registration, provided that the military unit is located in the territory of the Republic of Armenia.

In the absence of the above documents, proof of staying in the territory of the Republic of Armenia for at least 183 days within the last year serves as a basis, which must be confirmed by scanned copies of the relevant pages of the passport, including visa annotations.

Age - From 18 to 70 years old (at the time of loan repayment)

Co-Borrower - Any individual

Credit history requirements

• No current overdue or classified liabilities
• The total number of overdue days for all (repaid and current) loans over the past 12 months should not exceed 36 calendar days, and the number of delays in one month should not exceed 6 calendar days
• Credit risk class over the past 24 months - no higher than "monitored"
• Current borrower's collateral class - standard
• If the client has no credit history over the past 24 months, the entire history is analyzed, and the credit risk class should be no higher than "monitored"

Commissions / Fees

• One-time application review fee - not charged
• One-time loan issuance fee - not charged
• Monthly loan servicing fee - not charged
• Early loan repayment fee - not charged
• Opening and maintaining bank accounts (one-time) - according to the Bank’s applicable rate

Work Experience Requirement - At the current job - at least 3 months (if the source of income is salary)

Factors for Loan Rejection

• Negative credit history
• Collateral not meeting the Bank’s requirements
• Providing false or unreliable information
• Presence of information casting doubt on the loan’s repayability
• Other factors

Maximum Decision Time - Depending on the dealership - from 6 business hours up to 1 business day

Maximum Validity of Decision - 30 calendar days

Interest Calculation Method - The interest rate is calculated on the declining loan balance

Penalties for non-fulfillment of obligations by the borrower - The Bank has the right to:

• Continue to apply the interest calculation provided by the Agreement to the overdue loan.
• In terms of overdue interest, the Bank charges the Borrower a penalty in the amount of 0.13% of the overdue amount for each day of delay.
• In case of overdue obligations, repayments are made in the following order:

1. Penalty/penalties
2. Interest charges
3. Principal amount

Client’s other expenses

• Expenses related to collateral valuation - according to the rates set by the Bank’s partner appraisal companies
• Expenses related to vehicle registration and documentation
• Expenses related to the registration of collateral rights
• Annual insurance premium - according to the rates set by the Bank’s partner insurance companies

In case of non-fulfillment or incomplete fulfillment of the obligation by the borrower, after 7 working days, the lender sends that data to the credit bureau, where the credit history of the borrower is formed. The borrower has the right to obtain their credit history from the credit bureau once a year free of charge. A negative credit history may hinder the borrower from obtaining a loan in the future.

The Bank has the right to seize or sell the collateral without going to court.

In the event of a seizure of a pledged vehicle, if the claim secured by the pledge is not fully satisfied with the proceeds from the sale, the difference is seized from the borrower's other property.

Loan interest is calculated based on the nominal interest rate, and the annual effective interest rate shows how much the loan will cost if the interest and all mandatory payments for loan issuance and servicing are made within the specified deadlines and amounts.

The terms, deadlines, and fees for providing extracts, their copies, and other information are in accordance with the Bank’s applicable service rates.

In case of non-fulfillment or improper fulfillment of obligations assumed under the loan agreement, the pledged property may be confiscated in accordance with the procedure established by law.