Energy Efficient Mortgages in USD*

• you are an Armenian national or Armenian resident²
• have an account with HSBC Bank Armenia CJSC (hereafter the Bank) and at least 3 months employment with a company maintaining satisfactory banking relationship with the Bank, and your net monthly salary is at least AMD 200,000 or USD 500 or
• have an account with the Bank and at least 3 months employment with a company maintaining accounts with other banks in RA, and your net monthly salary is at least AMD 200,000 or USD 500. Salary should be transferred to your account with the Bank after loan drawdown (in case if prior salary transfer is not required by the Bank)³ or
• have an account with any other bank with at least 3 months employment history and salary being transferred to your account for 3 months, and your net monthly salary is at least AMD 250,000 or USD 600

• you are an Armenian national or Armenian resident² and
• have satisfactory account record and banking relationship with the Bank for a period of 3 months and more, and the last 3 months average monthly balance and average balance of the last month have been at least AMD 200,000 or USD 500 (or equivalent in other currency) or
• have satisfactory account record and banking relationship with other local banks for a period of 3 months and more, and the last 3 months average monthly balance and average balance of the last month have been at least AMD 250,000 or USD 600 (or equivalent in other currency)

Your loan amount may vary from USD 10000 up to USD 400000.

Loan maximum amount: 80% from the value of the property subject to purchase located in Yerevan or nearby suburbs. Respectively minimum prepayment arranged by customer is 20%.

The ratio of overall loan payments to net monthly income cannot exceed 60%.

Loan is provided in USD.

The loan will be transferred to customer's bank account. The amount will then be subsequently transferred to the seller’s account directly.

The residential property is pledged to the Bank (firm pledge) until the full repayment of the loan.

For residential property purchase loans the customer, hereafter also borrower, must have the ownership right to the residential property to be pledged.

If the loan is provided for purchase of residential property from primary market and it is under construction, (i.e. no Ownership Certificate is available for the property) the borrower will be asked to secure the loan by pledging any other privately owned residential property. Once the final Ownership Certificate of the completed residential property is issued it should be pledged to the Bank. All the documents related to and verifying the purchase of a new residential property should be submitted to the Bank for arranging pledge latest by the end of the 12th month.

Borrower must provide pledged property insurance opting from the list of the insurance companies acceptable for the Bank.

Insurance can be done either by full market value of the property or by loan amount upon borrower's discretion

If the property is insured for part of its value insurance compensation will be paid in the same proportion ratio of the sum insured and the property's full market value. 

The insurance policy should be reissued every year within the whole term of agreement. Should the borrower fail to arrange the insurance, the Bank will arrange insurance at the borrower's cost.

Beneficiary rights of the insurance policy will be entitled to the borrower.

The Bank reserves the right to demand early repayment of the loan, if insurance terms of the pledged residential property specified in residential property mortgage agreement are breached.

More information on the fees of the property insurance can be found in the “Lending fees” subsection. 

From 24 up to 300 months.

The following repayment options are available for borrowers:

Option one (reducing): Principal amount is repaid in equal monthly instalments, while the interest charges decrease over time as the size of principal amount due reduces. Therefore, your total monthly repayments will decrease over the loan tenor.

Option two (annuity): Repayments are calculated on an annuity basis. In this instance, over the loan tenor your total monthly repayment amounts will remain consistent, however the proportion of principal loan repayments and monthly interest charges may change.

In case you have outstanding obligations towards the creditor, the following repayment order will apply, when you fulfil your obligations:

1. Penalties
2. Interest
3. Principal

Interest is calculated on a daily basis for 365 days (366 days in case of leap year) on the outstanding balance of the loan.

If the borrower does not pay the interest and loan principal amounts in time, information about credit history will be submitted to the Central Bank of Armenia and ACRA Credit Reporting CJSC within three business days of credit facility overdue, resulting in negative impact on borrower’s credit history, should the borrower decide to apply for another loan in the future. In case of existence the reporting is applicable for guarantors and co-borrowers as well. You have the right to get your credit history from ACRA credit bureau once a year free of charge.

In case loan monthly repayments are not processed in line with the loan schedule and loan agreement and in case you do not properly meet your loan obligations, your property may be repossessed and you may be deprived of your rights over it.

If the amount of the collateral is not enough to repay the borrower's credit obligations, the obligations may be paid off at the expense of other property of the Borrower, in accordance with RA legislation.

No early repayment fee is applicable.

You can make loan early repayments by decreasing the outstanding loan amount as follows:

• by equally reducing the amount of monthly payments and leaving the loan term fixed, or
• by reducing the loan term by leaving monthly payments fixed
  

ATTENTION

In case of loan early repayment, the Bank will proportionately decrease the total crediting cost of the loan by proportionally reimbursing the customer the interest amount to be paid and other costs charged by the Bank (if applicable).

In case of overdue/default on loan principal and/or interest the Bank will apply penalty interest rate - 5% p.a. plus the loan nominal interest rate per annum, on the overdue amount.

When providing guarantee, the guarantor should acknowledge all the consequences of the guarantee provision, including full repayment of the obligation and applicable penalties, negative impact on the guarantor’s credit history and even repossession of the guarantor’s property, in case the borrower does not perform their obligations.

The Bank is obliged to:

• provide examples of credit, guarantee agreements and repayment schedule
• communicate with you by your preferred channel
• notify you about the changes to the terms of the agreement 7 days prior to those changes are made
• remind you about the loan obligation one day prior to its due date
• notify you about delayed loan repayments at latest 1 day after the delay
   

You have the right to:

• request information from the Bank on the loan residual amount at any time
• claim from the borrower the loan amount paid by you, as well as other losses borne by you instead of the borrower

The bank will provide customers with statements for their loan accounts in the manner and terms stipulated by the RA legislation. These statements can be delivered to your postal address or sent via email. You can familiarise yourself with the conditions, terms and fees for provision of statements, copies of statements or other information by referring to our Tariff of Charges and Terms and Conditions.

BEFORE SIGNING THE LOAN AGREEMENT, INDIVIDUAL BULLETIN TO BE PROVIDED AS PER CENTRAL BANK OF ARMENIA REGULATION 8/05 "ON BUSINESS CONDUCT RULES OF FINANCIAL ORGANIZATIONS"

Before signing the loan agreement, you have the opportunity to get acquainted with the essential terms of the loan and, if desired, compare it with the essential terms of the loan offered by other creditors.

The Individual Bulletin defines the essential terms and tariffs of the given credit, consumer rights and obligations applicable to all customers and the negative consequences in case of non-fulfilment in time.

The Individual Bulletin includes, but is not limited to:

• type of credit
• credit amount
• credit currency
• credit provision term
• credit annual nominal interest rate
• credit annual percentage interest rate
• payment frequency
• prepayment
• credit related payments
• penalties and fines in case of not properly paying loan or interest amounts

If the fulfilment of the consumer's obligations is secured by a pledge and (or) guarantee, security section should cover:

• type of pledge
• note on the guarantor
• and other conditions

We would also like to inform you that there may be differences between the Individual Bulletin and mortgage lending agreements due to changes in the repayment schedule and (or) the exchange rate.

The terms of the individual bulletin are effective 10 working days after informing you, as a consumer (guarantor), about the positive decision of the credit application. In case the consumer (guarantor) wants to sign the Individual Bulletin immediately, the Bank gives sufficient time to the consumer (guarantor) to read the Individual Bulletin in detail. If the consumer submits the signed Individual Bulletin to the Bank later than the established term, the Bank decides whether to sign the lending or mortgage lending agreement under those conditions in accordance with its internal legal acts or no.

1.1. The bank makes the decision on provision of loans at its discretion taking into consideration
the conformity of the loan application to the announced requirements of the given loan type as
well as evaluating such essential factors as the creditworthiness of the applicant, any overdue
payments and other factors.

1.1.1. The bank may require the customer’s obligations to be secured with guarantee at its discretion, based on risk assessment results.

2.1. The procedure and deadline for making final decision and informing the applicant about the decision - up to 5 business days after the submission of all other necessary documentation as requested by the bank via customer's preferred channel.

2.2. The maximum period for loan provision/drawdown – within 2 working days after the signing of loan agreement and necessary payments stipulated in the loan agreement.

3.1. Loan approval criteria 

• documented and stable income, which corresponds to the minimum set requirements for a particular loan type
• good credit history, with number of overdue days for all loans during the recent 12 months not exceeding maximum threshold set by the bank
• full document set required for the loan process

3.2. Loan declination criteria

• insufficient funds for servicing the loan, or undocumented income
• information that the loan will not be used for designated purpose
• incorrect and incomplete information provision as part of the loan process
• bad credit history, with number of overdue days for all loans during the recent 12 months not exceeding maximum threshold set by the Bank
• customer age does not meet the age related criteria for the specific loan type

You have the right to unilaterally terminate the credit agreement without any reason within 7 working days following its conclusion․