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Consumer Loans

Citizens of the Republic of Armenia, belonging to 18-70 age group.
Loans are provided for consumer purposes.

 

  • Loan amount: up to 2,000,000 AMD
  • Term: 3-36 months
  • Annual interest rate: 16-22%

Loan interest rate calculation:

Interest rates are calculated on a daily basis, taking 365 days to the actual balance of the loan principal.

The annual loan interest rate depends on loan conditions  (amount, term, loan repayment fee and the number of repayments).

The annual factual interest rate is calculated by the following formula

Where,

  • “A” is the loan amount, (the initial amount of loan provided by the lender to the borrower.
  • “n” is the amount f the loan repayment fee,
  • “N” is the last payment for the loan repayment,
  • “Kn” is the “n”-th amount loan repayment,
  • “Pn” is the period between the date of loan issuance and the n-th repayment, expressed with the number of the days,
  • “i” is the annual factual interest rate, which can be calculated, if the other details of the equity are known from the loan agreement or otherwise.

Up to AMD 500,000 including consumer loans, may be provided without guarantee, and/or pledge; moreover the sum of loans given to one borrower cannot exceed 500,000 AMD, at any moment.

Consumer loans over 500,000 AMD can be provided,

For 500,001-1,00,00 AMD, at least one guarantee or pledge.

For 1,000,001-2,000,000 AMD. at least two guarantees or pledges.

The borrower and the guarantor shall satisfy the following conditions;

  • The borrower and the guarantor shall have no overdue debts,
  • The sum of delayed loan repayment of last 6 months shall not exceed 30 days,
  • The borrower shall have a fixed income
  • The maximum ratio of monthly payments and revenues to all loans (including the ones from other organizations) of the borrower is set at 60%.

Penalties

  • In case of delays of loan interests and/or principle payment, a fine is imposed  at the rate of 0.1% on overdue amount  (overdue loan amount and overdue interest amount), for each day of delay

In the loan application form, the applicant shall indicate the loan amount, term and other necessary information.

The following will be attached to the application;

 

  • Passport or Identification card with copies
  • The guarantor’s passport or identification card with copies
  • Salary reference, if available