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Loans secured with real estate Consumer loan

Consumer loan

Loans with / without confirmation of earning and secured with real estate

 

Loans are disbursed for the maturity up to 10 years. You can get the loan either in cash in Armenian drams or non-cash in US dollars or Euro. 



  • Interest rate
    12%-20%
  • Maturity
    Up to 120 months
  • Minimum limit
    AMD 1 000 000
    or
    USD/EUR 2 000  
  • Maximum limit
    AMD 125 000 000 
    or  
    USD/EUR 250 000 


The page was updated 31.05.2018 17:53

Consumer loan

Loans with/without confirmation of earning and secured with real estate 
 
     

Appendix 2
Approved
by Decision No 472-L of the
Management Board of “IDBank” CJSC
as of November, 26, 2020
Enters into force starting November, 26, 2020

The terms mentioned in the bulletin may have been amended.
If you are looking through the bulletin on the website of the Bank, please pay attention to the action date of the bulletin.
If you are looking through the bulletin in a paper form, please visit the Bank’s website at www.idbank.am for detailed information (paying attention at the action date of the bulletin), apply to any branch of the Bank or contact the Bank’s Call center at (+37410) 59 33 33, (+37460) 27 33 33.

INFORMATION BULLETIN FOR “CONSUMER LOANS” SECURED WITH REAL ESTATE
1․ Purpose Other
2. Currency AMD, USD
3. Security Dwelling, public, commercial real estate
4. Annual interest rate (nominal and actual) For income – based loans For loans not based on income
Fixed interest rate for the whole period
Summary limit Up to 10,000,000 AMD or 20,000 USD Above 10,000,000 AMD or 20,000 USD Up to 10,000,000 or 20,000 USD Above 10,000,000 AMD or 20,000 USD
Nominal AMD 16,50% 18,00% 17,00% 18,50%
Actual[1] 16,76% - 21.92% 18,40% - 22.31% 17,34% - 22,84% 19,02% - 23.22%
Nominal USD 12,50% 13,00% 13,50% 14,50%
Actual 12.99% - 18.99% 13.44% - 16.96% 14.12% - 20.51% 15.18% - 18.73%
Fixed interest rate for the first 24 months, floating rate from the 25th to the 120th month
Nominal AMD Fixed from 13.5%
floating IDRR[2] + from 3.4%
Fixed from 14%
floating IDRR 1 + from 3,9%
Actual 13.25% - 19.74% 13.83% - 20.80%
Nominal USD Fixed from 10.5%
floating IDRR 1 + from 5.6%
Fixed from 12%
floating IDRR 1 + from 7,1%
Actual 11.61% - 18.97% 12.30% - 21.27%
5. Minimum maturity For loans with fixed rates 60 months
For loans with floating rates 36 months
6. Maximum maturity 84 months for loans with fixed rates
120 months for loans with floating rates
7. Minimum amount AMD 2,500,000 or 3,000 USD
8. Maximum amount AMD 125,000,000 or
250,000 USD
25,000,000 AMD
50,000 USD
9. Maximum loan to collateral ratio (towards appraised liquid value of property) AMD
  • 60%, if the subject of pledge is an apartment
  • 50%, of the subject of pledge is a residential house, public space, land etc.
  • 50%, if the subject of pledge is an apartment
  • 40%, of the subject of pledge is a residential house, public space, land etc.
USD
  • 50%, if the subject of pledge is an apartment 
  • 40%, of the subject of pledge is a residential house, public space, land etc.
  • 40%, if the subject of pledge is an apartment
  • 30%, of the subject of pledge is a residential house, public space, land etc.
10. How the loan is provided For loans in AMD - through current account
For loans in foreign currency – non-cash, through ArCa Classic, MasterCard Standard, MasterCard Gold and Visa credit cards issued by the Bank
11. Repayment of loan and accrued interest Monthly payments in equal parts, annuity method
Requirements to the borrower/co-borrower
12. Status Individual – RA citizen
13. Age restrictions The borrower must be at least 21 and as of the date of loan application and not have exceed 65 by maturity
14. Requirements to the credit history No existing overdue/ classified obligations (loan, credit line, overdraft, guarantees, etc.).
no credit history
15. TDI ratio (total debt (average monthly) to net income ratio) AMD 50% -
USD 45%
16. Structure of income and the maximum ratio thereof According to Annex 1.1
Security
17. Collateral * Real estate (dwelling, public, commercial) within the territory of RA, including separate land lot with the residential target use and must be located in Yerevan city
18. Pledgor Any individual or legal entity (in the case where the pledgor is a legal entity, it should have state registration in RA)
19. Appraisal of a subject of collateral The subject of collateral must be appraised by specialized organizations partners of the Bank, the list of which is available by the following link: List of appraisal companies
20. Minimum requirements to the subject of collateral 1. The real estate should have masonry, panel or reinforced structure (except for the dividing walls and covers between the floors)
The real estate should not be public housing, or located on the territory occupied by other constructions – dormitory
3. The real estate must not be located on the territory of exclusive public interest
4. The private house must not have general yard area, general or common property with the other properties
* The Bank is liable to require guarantee of an individual or a legal entity as an additional security
Insurance
21. Accident death insurance and insurance for disablement of the borrower May be required by the Bank
22. Collateral insurance May be required by the Bank
Fees
23. Loan application processing fee Not specified
24. Loan disbursement fee (deducted from the loan amount at the moment of disbursing the loan) 1,5% 2%
25. Monthly loan service fee calculated to the balance of the loan 0.1%
26. Bank account opening/closing fee According to the rates applicable by the Bank available by the following link: Information bulletin for loans
27. Cash withdrawal fee (for loans provided without payment cards) Not specified
28. Payment card rates According to the rates applicable by the bank at information bulletin, except for fee for permanent or temporary revision of the limits, which is free of charge
Fine, penalty
29. To the overdue loan, daily 0.1%
30. To overdue interest, daily 0.1%
31. Early repayment fee Not specified for loans in the amount of up to 15,000,000 AMD (inclusive) or equivalent in foreign currency
For loans equal and above 15,000,000 AMD or equivalent in foreign currency – 3 % of the early repaid amount, if such early repaid amount exceeds aggregate of principal amount for the 6 months following the date of early repayment, as provided by the repayment schedule.
Other terms and conditions
32. Main credit agreement The Bank may sign main credit agreement with the client with 180 months maturity and in the amount equal to 100 % market value of the real estate
33. Positive factors based on which the loan may be extended 1) Good credit history,
2) Stable cash flows,
3) compliance of the subject of collateral with the requirements of the Bank
4) Other factors
34. Why the loan may be rejected 1) Bad credit history
2) Incompliance of the collateral with the requirements of the Bank
3) provision of false or unreliable information
4) provision of such information, which rise suspicion to the return of the loan
5) absence of email address of the client
6) Other factors
35. Maximum term of taking decision Maximum 2 business day after submitting all required documents to the Bank
36. Maximum terms for giving notice to the customer 1 business day
The borrower may be notified of the loan decision in the Bank’s premises, by phone call or e-mail
37. Maximum validity period 15 business days
38. Term of loan disbursement 1 business day after submitting document, which confirms the right with regard to the collateral
39. Place of acceptance, registration and providing the loan application All branches of the Bank
40. The list of documents to be submitted by the Customer to the Bank According to Annex 1.2
Terms of refinancing **
41. Annual interest rate For loans in Armenian drams – interest rate specified by point 4 of the Tariffs, less 1 percentage point
For loans in USD or EUR – interest rate specified by point 4 of the Tariffs, less 0.5 percentage point
42. Target group of borrowers 42.1. Transfer of existing liability/liabilities secured with movable or immovable property and maintained at other banks/credit organizations for at least 18 months, with the opportunity to increase the amount.
42.2. financing those customers, who had loans secured with real estate and maintained at other banks/credit organizations for at least 18 months, the final repayment of which was during 6 months preceding the application.
42.3. financing those customers, who had loans secured with real estate and served at the Bank for at least 18 months, the final repayment of which was during 6 months preceding the application.
In cases provided by points 42.1, 42.2 and 42.3 hereof:
1)           Re-financing can be affected on the name of parties affiliated with the borrower. In the terms of this document the affiliated party shall mean father, mother, children, spouse, sister or brother of the borrower. Moreover, the Bank has the right to request a document confirming such affiliation (such document includes marriage certificate, birth certificate, etc.).
2)          “Loan maintained at least 18 months” can be understood the aggregate term of service in different banks/credit organizations.
3) In the event of transferring the loan within maximum 30 days after taking the decision on approval of the extension of the loan the Customer may repay the loan to be transferred on his own means and transfer the loan without the subsequent collateral.
43. Other requirements In cases provided by points 42.1, 42.2 and 42.3 hereof:
  • In cases stipulated by clause 42.1 hereof the number of past due days of the customer’s loans during the most recent 24 months preceding the date of application should not exceed 50 days and aggregate on transferred loan(s) – 10 days.
  • In cases stipulated by clauses 42.2 and 42.3 hereof aggregate past due days on repaid loan secured with real property during the most recent 24 months of loan service should not exceed 20 days
  • loans transferred during the most recent 3 months preceding the application date should be classified as “Standard”
44. Loan application processing fee Not specified
45. Up-front fee Not specified
46. Monthly service fee Not specified
47. Pledging related costs Costs to be borne by the Bank for executing the pledge for loans exceeding AMD 4,000,001/equivalent in foreign currency
  - Collateral appraisal fee (appraisal is not required if the property pledged at the Bank was appraised during the most recent 12 months , or any other banks/financial organizations during the most recent 6 months preceding the date of application by one of the appraising companies – partners of the Bank)
  - fee for unified reference issued by the Real estate Cadaster State Committee of the RA Government *,

 - Fee for notarization of real estate, subject of collateral

 - Fee for registration of the title of the Bank resulted from the pledge agreement in the state competent authority*

* No fee shall be charged for the reference, in the case of execution of the fee for unified reference issued by the Real estate Cadaster State Committee of the RA Government and the fee for registration of the title of the Bank resulted from the pledge agreement in the state competent authority through ARPIS software applicable by the Bank
The abovementioned pledge related costs may be borne either by the client or by the Bank. Moreover, in the event the costs are borne by the Bank, if the client fully repays the loan before the maturity within 24 months following the transfer, the borrower will refund the costs provided by this clause borne by the Bank.
** other terms of refinancing, which are not included in points 41-48 hereof, shall be the same as provided by points 1-41 hereof
In addition to the fees, indicated herein the borrower shall bear the following costs (for 1 item of collateral)
✓ Property appraisal fee 15,000 - 25,000 AMD (for apartment and dwelling house). The fee may vary depending on the type of collateral. The list of companies collaborating with the Bank and the tariffs are available at the list of appraisal companies Unified reference – up to 10.300 AMD
✓ Inquiry of information 1300 AMD
✓ Notarization fees 15.000 AMD
✓Registration of collateral right – up to 26,300 AMD
✓ Insurance of the property and the borrower; the list of companies collaborating with the Bank and the tariffs are available by the following link: The list of insurance companies
Irrespectively of the rates specified herein, the fees for services provided by the third parties may vary by the third parties.

[1] THE INTEREST AMOUNTS OF THE LOAN ARE CALCULATED UPON THE NOMINAL ANNUAL INTEREST RATE. THE INTEREST AMOUNT OF THE LOAN IS CALCULATED ON THE ACTUAL LOAN BALANCE, AND THE NOMINAL INTEREST RATE INDICATES HOW MUCH THE LOAN WOULD COST THE CLIENT GIVEN THE INTEREST AMOUNTS AND OTHER PAYMENTS WERE PAID ON TIME AND IN THE DEFINED AMOUNTS. Annual actual interest rate is calculated herein with the account of tariffs provided for ARCA CLASSIC type cards. The actual interest rate may be amended if the loan is provided by other cards issued by the Bank. Calculation of the actual interest rate is carried out with the account of terms of re-financing
[2] 1ID Bank reference rate (IBRR) and the calculation methodology are available by the following link: https://www.idbank.am/retail/IDBank-reference-rate-ibrr/. The IBRR for loans extended under these terms may be changed 2 times annually, in May and November; moreover, the changes will take effect within 30 calendar days after being published. Maximum and minimum limits of floating interest rates for USD loans can be 8,5% and 17.5%, for AMD loans 10% and 20% respectively.
[3] If the payment provided by the lease agreement is different than the actual payment amount then a leasing payment established by an independent appraisal company is accepted.


Annex 1

Structure and the share of the income

Type of income Share
1. Salary (equivalents), received for the main work time, based on the professional skills and abilities, and the basic income (profit) received as a result of private entrepreneurship, which is proved on the basis of statements presented to the RA tax authorities 100%
2. Lease income, which is received within at least 3 months preceding the date of application and justified by lease agreement duly signed within the scope of the law [3] 100%
3. Pension for long term service (officers of police, Ministry of Defense, Penitentiary and other similar authorities, pedagogues, judges, etc.), death of breadwinner and etc. (other than age and incapability pensions) 100%
4. Income from investment to the government treasury bills, CBA securities, other securities, during at least one-year period preceding the date of application. 60%
5. Income received from the entrepreneurship activities of the borrower for the last reporting period, which are not justified with documents stipulated by the RA legislation, but with the internal book-keeping documents, monitored and analyzed by the respective unit of the Bank 100%
6. Performing paid works or delivery of services within at least one year, justified by appropriate agreement Up to 100%
7. Transfers received throughout a year preceding the date of loan application, moreover, they should have been received for at least 4 times, once every 90 days or at least 3 times, if received through the Bank. 60%
8. Interest received from funds (deposit) maintained in the Bank and/or other financial institution during at least one year preceding the loan application, but not earlier than 3 months preceding the loan application. 50%
9. Other income, acceptable by the competent authority of the Bank Up to 100%

 

GENERAL PROVISIONS 

1. Prior to concluding loan agreement the Bank must provide to the customers personal paper of essential terms of consumer loan the amount of which is not above 15 million AMD, in which the personal terms and conditions of the loan to be provided are indicated.
2. A customer has the right to unilaterally terminate the loan agreement without any reasoning within 7 (seven) business days (time to think) after signing the loan agreement by returning the received overdraft amount in full and paying interests calculated in accordance with the annual nominal interest rate as defined by the agreement.
3. In case of early repayment, the Bank’s income-generating payments which constitute to the total lending cost in terms of the client are decreased proportionally.
4. The customer also has the right to fulfil (repay) its contractual liabilities ahead of schedule irrespective of the circumstance whether the agreement provides such a right or no.
5. Real estate Mortgage agreement should be verified by a notary public. The title, mortgage right and other property rights are subject to state registration.
6. Loan interest is calculated on the basis of nominal interest rates. The loan interest is calculated with regard to actual balance of the loan.
7. The nominal interest rate indicates how much the loan would cost the client given the interest amounts and other payments are paid on time and in the defined amounts
8. The order of calculation of annual nominal interest rate is presented at the following link: Instruction on calculation of annual nominal interest rate.
9. For foreign exchange loans the calculation of the actual interest rate is based on the exchange rate published on the CBA official site as of the date of the loan. Actual interest rate can be changed depending on the change of the value of the exchange rate published on the official site of the CBA.
10. For foreign exchange loans the interest calculated with respect of the principal amount can be paid in the currency of the loan, if requested by the borrower.
11. For foreign exchange loans the changes of the foreign exchange rate can affect the repayment of the loan.
12. In case of failure to make the loan and interest amount payments the pledged funds and/or property of the customer can be confiscated in an order prescribed by law, and the Bank shall send the information on the client to the credit bureau within maximum three business days where the client’s credit history is built. Once a year the client has the right to receive information on his/her credit history free of charge
13. Bad credit history can prevent a customer from getting a loan in the future.
14. The property right (apartment or house) of the borrower may be forfeited if the borrower fails to perform or improperly performs his/her loan obligations.
15. In case if the client fails to perform its obligations, the latter’s obligations can be paid at the expense of other property of the client.
16. Repayments of overdue liabilities are made in the following order: confiscation expenses, including judicial expenses (if applicable), interest penalty, loan principal amount penalty, interests, service fee and commissions /if applicable/ and loan amount. The Lender has the right to unilaterally change the order of repayments mentioned in this paragraph at any time
17. Disputes arising between the parties according to the RA legislation can be settled through court or by means of the Financial system mediator (as prescribed by RA law on “Financial System Mediator”): address – 15 M. Khorenatsi St. Yerevan 0010, “Elite Plaza” business center, 7th floor, e-mail – info@fsm.am, phone number – (+37460) 70-11-11, fax – (+37410) 58-24-21. Moreover, in case if the amount of property claim does not exceed 500 000 (five hundred thousand) AMD or equivalent in foreign currency, the decision of the Financial System Mediator cannot be appealed by the Bank.
18. For the purpose of proper study of the client in accordance with the RA law “On combating money laundering and terrorism financing” the Bank may require additional documents or information on the “know your customer” principle
19. According to the agreement with the USA based on the Foreign Account Tax Compliance Act (FATCA) the Bank may collect additional information for the purpose of identification of the fact of the client being a US taxpayer
 20. The client has the right to communicate with the Bank through a preferred means of communication: e-mail of regular post. 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 as well as ensures confidentiality
21. The conditions on providing statements, their copes, references throughout the term of the loan agreement can be found at the following link:  tariffs.
22. The list of branches and ATMs of the Bank, information on their locations and working hours can be found at the following link: Branches and ATMs.
23. Remote service by the Bank is provided thought IDBanking.am online system the information on the terms and tariffs of which is given in “Public terms of providing remote banking services.

 

ATTENTION: THE BANK IS CONTROLLED BY THE RA CENTRAL BANK.

The page was updated 30.11.2020 11:20

The following documents should be submitted to the Bank to get consumer loan secured with real estate:


  • ID document,

  • Public service number /reference on non-receiving the PSN

  • Income proof

  • Statement of residence (persons, currently residing in)

  • Title of the pledged property

  • Other documents, as required   

The page was updated 17.11.2017 12:56
Attention: The Bank does not bear any responsibility for the inaccuracy of information on the linked web sites, nor does it accept any responsibility for the advertisements therein or possible consequences arising out of use of information provided on the linked web-sites. In case of any discrepancies in the website materials in Armenian, Russian and English languages, the Armenian version is prevailing.