| Loan elements | Loan description |
|---|---|
| Loan terms1 | 24 - 240 months |
| Loan amount | AMD 5,000,000 to 200,000,000 or USD 10,000 to 400,000 |
| Loan currency |
AMD and USD. Loans in USD can be provided only in case the customer meets all applicable requirements against lending in foreign currency. Explore details. |
| Interest rate2 | Annual nominal interest rate - floating Important: The nominal interest rate may be changed in case of bank retail base rate changes (RBR), no more than twice a year. Maximum and minimum thresholds of +/-7 percentage points are set for the nominal interest rate of the loan, which cannot be exceeded during the whole lifecycle of the loan.
For AMD loans, this is calculated at the Bank’s AMD retail base rate plus constant margin and is currently equal to:
Where:
9% - Bank’s AMD Retail Base Rate 3.5%, 4% - Constant margin
Annual percentage rate starting from 14.06% up to 17.45%.
Annual percentage rate for PLUS and STATUS customers starting from 13.47% up to 16.81%.
For the calculation of APR the foreign exchange rate published on Central Bank official website is being used. The APR may vary as a result of the above-mentioned rate change. 3.2% + 4.8% = 8% for PLUS and STATUS customers
Where:
5.8% - Constant margin for purchase loans in USD 4.8% - Constant margin for purchase loans in USD for PLUS and STATUS customers
Loan interest amount is calculated based on the annual nominal interest rate, whereas the annual percentage rate or APR indicates how much the loan would cost to the borrower in case of repayment of interest amount and other payments under the defined timeline and terms.
Loan interest is calculated in the loan currency on a daily basis for 365 days and for 366 days in case of leap year on the loan outstanding balance. |
| Loan to Value Ratio |
Loan amount cannot exceed 90% of the purchased property value. Minimum prepayment amount in case of lending in AMD is 10%3, and in the case of USD loans is 30%4. |
| Loan provision fee (one-off) |
AMD 50,000.00 irrespective segment and loan amount. The loan provision one-off fee will be charged from the customer's account on loan provision day. |
| Loan elements | Loan terms1 |
|---|---|
| Loan description | 24 - 240 months |
| Loan elements | Loan amount |
| Loan description | AMD 5,000,000 to 200,000,000 or USD 10,000 to 400,000 |
| Loan elements |
Loan currency |
| Loan description |
AMD and USD. Loans in USD can be provided only in case the customer meets all applicable requirements against lending in foreign currency. Explore details. |
| Loan elements | Interest rate2 |
| Loan description |
Annual nominal interest rate - floating Important: The nominal interest rate may be changed in case of bank retail base rate changes (RBR), no more than twice a year. Maximum and minimum thresholds of +/-7 percentage points are set for the nominal interest rate of the loan, which cannot be exceeded during the whole lifecycle of the loan.
For AMD loans, this is calculated at the Bank’s AMD retail base rate plus constant margin and is currently equal to:
Where:
9% - Bank’s AMD Retail Base Rate 3.5%, 4% - Constant margin
Annual percentage rate starting from 14.06% up to 17.45%.
Annual percentage rate for PLUS and STATUS customers starting from 13.47% up to 16.81%.
For the calculation of APR the foreign exchange rate published on Central Bank official website is being used. The APR may vary as a result of the above-mentioned rate change. 3.2% + 4.8% = 8% for PLUS and STATUS customers
Where:
5.8% - Constant margin for purchase loans in USD 4.8% - Constant margin for purchase loans in USD for PLUS and STATUS customers
Loan interest amount is calculated based on the annual nominal interest rate, whereas the annual percentage rate or APR indicates how much the loan would cost to the borrower in case of repayment of interest amount and other payments under the defined timeline and terms.
Loan interest is calculated in the loan currency on a daily basis for 365 days and for 366 days in case of leap year on the loan outstanding balance. |
| Loan elements |
Loan to Value Ratio |
| Loan description |
Loan amount cannot exceed 90% of the purchased property value. Minimum prepayment amount in case of lending in AMD is 10%3, and in the case of USD loans is 30%4. |
| Loan elements |
Loan provision fee (one-off) |
| Loan description |
AMD 50,000.00 irrespective segment and loan amount. The loan provision one-off fee will be charged from the customer's account on loan provision day. |
Please read the Loan Terms and Conditions before applying.
Loan repayment
The following repayment options are available for the borrowers:
Principal is repaid in equal monthly instalments, while interest amount decreases with the repayment of a principal. Therefore, monthly repayments will decrease over the loan tenor.
Repayments are calculated on annuity basis, where both principal and interest monthly repayment amounts change over the loan tenor, while the total monthly repayment amount remains constant.
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 3 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.
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.
Interest amount calculation
Interest amount will be calculated on a daily basis by using the following formula:
I = R*L/365 (or 366 in case of leap year), where
I = one-day interest amount
R = current interest rate
L = outstanding amount of loan
Representative examples of interest amount calculation
House purchase loan in AMD with Reducing repayment type was provided to the customer.
- loan amount: AMD 50,000,000
- loan term: 240 months
- annual interest rate: 12.5%
- annual percentage rate:13.6%
- days in a year: 365/366
- loan provision date: 01/09/2022
- first repayment date: 05/10/2022
- loan full repayment date: 05/09/2042
- loan provision one-off fee: AMD 50,000
- monthly repayments
repayment for the first month - AMD 790,525.11 (out of which - interest amount AMD 582,191.78)
repayment for the second month - AMD 736,943.49 (out of which - interest amount AMD 528,610.16)
repayment for the last month - AMD 210,545.09 (out of which - interest amount AMD 2,211.76)
Interest amount for the whole period of loan is AMD 62,824,673.83
Things you should know
Financial directory (website in Armenian)
Your Financial Directory is an electronic search and comparison tool for services offered to individuals to ease the process of making the most effective choice for you.
You can apply for the loan both at HSBC Bank Armenia main office and branches. Find the most convenient office or a branch.
1 Customer's minimum age must be 18. Customer's age plus the loan term should not exceed 65 years. The borrower must be a citizen/resident of the Republic of Armenia. Within the framework of this offer, people with a minimum 1 year of residence in Armenia proven by respective documents are considered as Armenian residents.
2 Depending on risk assessment results, loan application may be approved at a higher interest rate.
3 Debt to Income Ratio for AMD loans is 60% - 70% depending on income.
Last updated on: 03.05.24, 08:13