Loans within the framework of “National Mortgage Company” RCO CJSC project, Bank’s own funds
Loans are provided to physical entities for renovation of residential real estate property
Annual nominal interest ratefrom 10%
Maturityup to 180 months
Maximum amount125 000 000 AMD
250 000 USD
Loans within the framework of “National Mortgage Company” RCO CJSC project, Bank’s own funds
Approved by resolution No 98-Լ of the
Management Board of “IDBank” CJSC
dated February 19, 2021
Applied starting from March 1, 2021
The terms mentioned in the bulletin can have be amended.If you are reading the bulletin on the website of the Bank, please pay attention to the action date of the information bulletin.
If you are reading 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 information bulletin), apply to any branch of the Bank or call the Bank’s Call center at 010 593333 or 060 273333.
|Information bulletin of mortgage loans provided for the purpose of renovation of real estate property|
|1.1||Program||Own resources||National mortgage company|
|1.2||Loan purpose||Renovation of real estate property||Renovation of residential real estate property|
|1.4||Minimum loan amount||AMD 3,000,000 or equivalent in USD|
|1.5||Maximum loan amount||AMD 125,000,000||Up to USD 250,000||Up to 35,000,000|
|1.6||Minimum loan term||60 months|
|1.7||Maximum loan term||120 months||120 months||180 months|
|1.8||Nominal annual interest rate *||
Fixed interest rate – for the first 12 months,
Floating interest rate – from 13th to 120th months
Fixed interest rate – for the first 24 months,
Floating interest rate – from 25th to 120th months
|Fixed – for the whole period|
IBRR + (5.9%- 8.9%)
|10.4% - 12.4%|
|* In case if the insurance of the real estate property being renovated and/or life of the borrower/coborrower (if any) from accidents is performed by the client the nominal annual interest rate of the loan is reduced by 0.25%|
|1.9||Effective annual interest rate||12.18% - 18.94%||10.57% - 15.99%||11.04% - 15.29%|
|1.10||Security (pledge)||1) Real estate property being renovated or||Real estate property being renovated|
|2) Real estate property being renovated and other real estate property (residential/public)|
|1.11||Maximum loan/collateral ratio*||70%||80%||70%|
|* resource the loan/collateral ratio calculation is based on the estimated market value of the property being renovated|
|1.12||Loan disbursement method||
|1.13||Method of loan and interest repayment||
1. Annuity repayment method – Equal monthly repayments of the sum of loan principal and interest amount*
* in case of change of the annual nominal interest rate during the loan period, the method of repayment of the loan and interest amounts can be changed.
|1.14||Loan application revision fee||Not specified|
|1.15||One-time loan disbursement fee||1%, minimum AMD 30,000, maximum AMD 150,000|
|The one-time loan disbursement fee is charged from the contractual loan amount|
|1.16||Bank account opening/closing||
Opened in the loan currency according to the tariffs applied in the Bank.
If the loan currency is other than AMD, an account in AMD shall also be opened.
|1.17||Commission for encashment of loan amount and prepayment||Not specified|
|1.18||Pledger||the borrower and/or coborrower, or any physical or legal entity in case of other real estate property (other pledge)|
|2.||Requirements to borrower/coborrower|
|2.1||Status of the borrower/coborrower||RA citizen physical entity|
|2.3||General principle of borrower/coborrower’s creditworthiness assessment||Maximum total debt repayments to net incomes (OTI) ratio must not exceed|
|2.4||Incomes of the borrower/coborrower||1) Composition of primary incomes – according to Appendix 1|
|2) Composition of secondary incomes – according to Appendix 1|
|2.5||Requirements to the borrower’s/coborrower’s credit history||1. Absence of credit history or|
|2. Absence of overdue liabilities towards the financial-banking system as of the date of acceptance of the loan application (in terms of loans, credit lines, overdrafts, provided guarantee etc.), and|
|3. Less than 30 total overdue days in terms of loan principal amount and/or interest repayments in terms of loans (credit line, overdraft, guarantee etc.) received within the 12 months preceding the loan application submission date.|
|2.6||FINES, PENALTIES||Penalty for overdue principal amount – 0.1% daily|
|Penalty for overdue interest amount – 0.1% daily|
In case of early loan repayment:
- 0.6% of early repaid amount for the 1st year of the loan agreement,
- 0.4% of early repaid amount for the 2nd year of the loan agreement,
- 0.2% of early repaid amount for the 3rd year of the loan agreement,
- No early repayment penalty is charged after the 3rd year of the loan agreement.
No early repayment penalty is charged for the amount which does not exceed the aggregate sum of principal amount repayments provided by the repayment schedule for the 12 months following the early repayment.
In case of non-targeted use of the loan the Bank is entitled to demand:
1) early repayment of the whole loan amount,
2) penalty in the amount of 25% of the misused loan amount,
3) revision of loan interest rate according to the competent body if the Bank.
Performed by the Bank
Presented in Appendix 2
|2.8||Requirements to the subject of pledge||Presented in Appendix 3|
|2.9||Place of acceptance of the application and documents||All branches of the Bank|
|2.10||Loan decision making and notification of the client||Up to 3 business days after submission of a complete package of documents required by the Bank|
|2.11||Loan disbursement term||Maximum 3 business days after submission of complete package of documents and registration of the right of pledge after the decision has been made|
|2.12||Validity of the loan decision||30 business days|
|The Bank is entitled to reject provision of the loan if the conditions considered to be essential for a positive decision on provision of loan have been changed (e.g. change of pledge value, overdue liabilities, arrest/seizure of bank accounts etc.)|
|Refinancing of loan for the purpose of real estate property renovation is implemented according to terms described in provisions 1 and 2 of these terms, except for the following terms:|
|3․1||Loan application revision fee||Not specified|
|3․2||One-time loan disbursement fee||Not specified|
|3․3||Pledge related costs||
The pledge related costs incurred by the Bank for loans amounting to AMD 15,000,000 and more are as follows:
- collateral appraisal fee (no appraisal is required if the given property is already pledged in the Bank and has been appraised within 12 months preceding the submission of the loan application, or 6 months preceding the submission of the loan application in case if the property is pledged in other banks/credit organizations, by appraisal companies cooperating with the Bank),
- Fee for the unified reference provided by the state cadaster committee under the RA Government*,
- Notarization fee for the real estate that is the subject of collateral
- Fee for registration of the Bank’s right arising from the pledge agreement in the competent state body*
*in case if the fees for the unified reference provided by the state cadaster committee under the RA Government and for registration of the Bank’s right arising from the pledge agreement in the competent state body are made through the ARPIS program applied in the Bank, no reference fee shall be charged.
In case if the costs are incurred by the Bank the borrower shall reimburse to the Bank the costs incurred by the latter mentioned in this provision in case if the borrower completely repays the loan ahead of time within 24 months following the transfer.
|4.||List of documents to be submitted by the client||according to Appendix 4|
In addition to the commission fees mentioned in these terms, the borrower shall also bear the following expenses (in case of 1 collateral)*:
Irrespective of the rates of the Bank stated in these terms, the fees for services rendered by third parties can be changed by the third parties.
In order to receive a loan, the borrower/coborrower must provide the Bank with his/her e-mail address, otherwise the loan shall be rejected.
1 The renovation works must be finished within 12 months after disbursement of the loan/installment.
2 The reference rate of “IDBank” CJSC (IBRR) and its methodology of calculation can be found at the following link: https://www.idbank.am/retail/IDBank-reference-rate-ibrr/. For the loans provided under these terms the IBRR can change twice a year, in May and November, moreover, the change enters into force 30 calendar days after its publication. The floating interest rate in terms of each loan can increase or reduce by two percentage point in case of USD, and four percentage points in case of AMD.
3 LOAN INTEREST AMOUNTS ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE. LOAN INTEREST AMOUNT IS CALCULATED TOWARDS THE ACTUAL LOAN BALANCE, AND THE EFFECTIVE ANNUAL INTEREST RATE INDICATES HOW MUCH THE LOAN WOULD COST THE CLIENT GIVEN ALL THE INTEREST AND OTHER PAYMENTS ARE MADE IN DEFINED TERMS AND AMOUNTS.
The calculation of the effective interest rate is based also on refinancing terms.
|Income composition and maximum weights to participate in the OTI ratio|
|1.1||Salary/income received for the main work hours, based on the professional skills and abilities of the borrower/coborrower||100%|
Income (profit) received as a result of own business activities, and grounded by appropriate documents*
* the business must be registered in the corresponding state body and operate for at least 6 consecutive months
In case of lending within the scopes of the National Mortgage Company program:
Income received from rental which is grounded by documents.
Moreover, the real estate property must have been rented for at least 270 days within the 12 months preceding the loan application acceptance date, which is grounded by documents.
In case of lending with the own resource of the Bank:
- Income received from rental which has been received during at least 3 months preceding the loan application acceptance date, which is grounded by rental agreement(s) concluded in the order defined by law*,
* if the fee defined by the rental agreement differs from the actual rental fee, the rental fee estimated by the independent appraisal company shall be counted.
|2.2||Income from investments into state treasury bonds, CBA securities, other securities, received during at least one year prior to the date of loan application.||60%|
|2.3||Income received for paid works or rendered services over at least one year in case of lending within the scopes of the National Mortgage Company program||50%|
|Income received for paid works or rendered services over at least one year grounded by corresponding agreements in case of lending with the own resource of the Bank||up 100%|
Transfers received over a year preceding the date of loan application given that they have been received for at least 6 times (in this case transfers made over the past 12 months on a monthly basis or once every two months shall be considered as periodic) in case of lending with the own resource of the Bank
Transfers received for at least eight months over a year preceding the date of loan application if these transfers have been received from family members in case of lending within the scopes of the National Mortgage Company program (family members are the father, mother, spouse’s parents, grandfather, grandmother, sister, brother, children, spouse and children of sister/brother).
|2.5||Pension for long term service (employees of the Police of the Government of RA, RA Ministry of Defense, penitentiaries and other appropriate institutions, pedagogues, judges, etc.), pension for the death of breadwinner, etc. (except for retirement pension)||60%|
|2.6||Profit/income received from business activity which is grounded by internal accounting documents (in case, if the income is being received from a business which has never been registered in the tax field)||60%|
|2.7||Bonuses if the latter bear a regular nature (at least quarterly) and have been paid within the past one year and are not conditioned by the results of the employer’s activity||100%|
|2.8||Bonuses if the latter bear a regular nature and have been paid within the past one year and are not conditioned by the results of the employer’s activity||60%|
|2.9||Dividends, which bear a permanent nature, and the payment of which has been made from the declared profit||100%|
|2.10||Other income acceptable for the Bank’s competent body||up 100%|
|1. Insurance of borrower/coborrower|
|Insurance of borrower/coborrower||
Insurance is provided against loss of life as a result of accident and loss of permanent ability to work in the amount of the loan balance:
1. Each year on an annual basis,
2. For the last year of the loan for the period left before the loan repayment,
3. In proportion to the income of the borrower/coborrower participating in the loan repayment.
|2. Insurance of the subject of pledge|
|Real estate property under construction||
Insurance is performed in the amount of the loan balance:
1) each year on an annual basis,
2) for the last year of the loan for the period left before the loan repayment
|Minimal cases covered by the insurance agreement||
2. fire or explosion,
3. hail, flood or heavy rain,
4. storm or strong wind,
5. Heating, water supply or drainage system failure,
6. malicious acts committed by third parties
|Requirements to the subject of pledge|
|1.||Subject of pledge||Real estate property to be renovated, other residential/public real estate property|
|2.||Location of the subject of pledge||RA territory|
|3.||Appraisal of the subject of pledge||The subject of pledge must be appraised by one of the specialized organizations cooperating with the Bank|
|4.||Insurance of the subject of pledge||According to Appendix 8.2|
|5.||Other requirements||The subject of pledge should:|
|1) not be located on the territory of another building, dormitory|
|2) not be located on the territory of overriding public interest,|
|3) not have a common yard area with another owner if it’s a residential house or it should not include a land area which is mutually owned by another owner or the residential house is overburdened with land rental or free use.|
1. Prior to conclusion of a loan agreement the Bank shall provide the client with the individual sheet of essential conditions of the loan which contains the individual conditions of the loan to be provided to the client.
2. The Bank is obliged to provide the client with the mortgage loan offer 7 days prior to the agreement signing date and provide the client with the opportunity to think over before making a final decision.
3. The borrower has the right to completely or partially perform his/her contractual obligations ahead of time, paying a penalty if provided.
4. In case of early repayment, the payments, generating the Bank’s income, included in the total cost of crediting the borrower, shall be proportionally reduced.
5. The client is entitled to fulfil (repay) his/her contractual obligations ahead of time irrespective of the fact of such right being prescribed by the loan agreement or not.
6. The real estate mortgage agreement must be notarized. The property ownership right, mortgage right and other property rights are subject to state registration.
7. Loan interest amounts shall be calculated based on the effective interest rate. Loan interest amount shall be calculated against actual loan balance.
8. The effective annual interest rate indicates the cost of the loan for the client given all the interest amounts and fees are repaid in the defined terms and amounts․
9. The order of effective annual interest rate calculation is presented at the following link: Guideline on effective annual interest rate calculation.
10. In case of foreign currency loans, the effective interest rate calculation is based on the exchange rate published on the official website of the RA Central Bank at the moment of provision of loan. The effective interest rate can change depending on the change of the exchange rate published on the official website of the RA Central Bank.
11. In case of foreign currency loans, the interest amounts calculated towards the principal loan amount can also be paid in the loan currency upon the client’s request.
12 In case of foreign currency loans, the changes of foreign currency exchange rates can impact the loan repayments․
13. In case of failure to perform interest and loan repayments on time the pledged property and/or monetary funds can be confiscated in an order prescribed by law, and the Bank shall send the information on the client to the credit bureau within a maximum of three business days, where the client’s credit history is being shaped. The client has the right to receive his/her credit history free of charge once a year from the credit bureau.
14. A bad credit history can prevent a client from receiving loans in the future.
15. The borrower may be deprived of his/her property rights if he/she does not fulfill or improperly fulfills his obligations under the loan agreement.
16. In case if the collateral is not sufficient to fulfil a client’s obligations at the expense of the collateral in the event of failure to fulfil obligations by the clients, the obligations can be repaid at the expense of other property of the client․
17. While performing overdue obligations, the repayments shall be implemented in the following order: cost of confiscation, including litigation expenses (if applicable), interest penalty, penalty for principal loan amount, interest, service fee and commissions /if applicable/ and principal loan amount. The Lender is entitled to unilaterally change the order of repayments mentioned in this provision at any time․
18. Disputes arising between the parties can be settled in a court proceeding or by the Financial system mediator (in the order prescribed by the RA law on “Financial system mediator”), located at 0010, Yerevan, 15 M. Khorenatsi St, “Elite Plaza” business center, 7th floor, e-mail – email@example.com, telephone – (+37460) 701111, fax –(+37410) 582421. Moreover, if the property claim does not exceed 500 000 (five hundred thousand) AMD or equivalent in foreign currency, the decisions of the Financial System Mediator cannot be challenged by the Bank․
19. For the purpose of proper study of the client as defined by RA law on “Combating money laundering and terrorism financing”, the Bank may require additional documents or information based on “Know Your Client” principle.
20. 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.
21. The Client has the right to communicate with the Bank through a preferred means of communication: e-mail or 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․
22. The conditions of providing statements, their copies, references during the validity of the loan agreement can be found at the following link: Tariffs.
23. 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.
24. Remote servicing by the Bank is provided thought the IDBanking.am online system and Idram mobile application. The order and tariffs on rendering remote services are presented in “Public terms on rendering remote banking services”.
ATTENTION! THE BANK IS CONTROLLED BY THE RA CENTRAL BANK
Identification document of the borrower/co-borrower – passport, ID or another substitute document
Borrower’s/co-borrower’s social security number/reference on not having a social security number
Documents on information about the spouse
Borrower’s/co-borrower’s proof of income *
Other necessary documents