The Company collaborates with all commercial banks and credit organizations that operate in RA and are ready to disburse qualified loans meeting the requirements set by the Company's current applicable regulations. In addition, the bank or credit organization is expected to meet efficiency/stability and other criteria set by the Company.
Mortgage loans are considered qualified if they are provided in accordance with the Minimum Quality Standards and meet the following criteria:
|Armenian Dram (AMD)|
|Purpose of the loan|
1. Purchase of an apartment in the building being constructed or in a complete building
2. For the purpose of renovating such as home improvements
3. For the purpose of private homes’ construction
1. Min 10 years for property purchase and construction loans,
2. Min 5 years for property Renovation loans.
|Mortgage loan limit|
Max 35.0 million AMD of which only 25.0 million AMD will be refinanced by the Company, and the rest will be provided by PFI's own funds. Moreover, payments made by the borrower should be primarily directed to repayment of the refunded loan, and only after the full repayment, the new payments will be directed to the repayment of the loan provided by the PFI.
Fixed rates. Fixed rates can be reviewed once in 3 years. If the new PFI Loan interest rate is lower than the previous one then the interest rate on the underlying mortgage loan should be reduced at least by the difference between the old and new PFI Loan interest rates. If new PFI Loan interest rate is higher than the previous one then the interest rate on the underlying mortgage loan can be increased no more than the difference between new and old PFI Loan interest rates.
|The payments should be done on monthly basis - fully amortizing annuity loan or equal principal amount payments loan․|
|Borrowers/coborrowers must be citizens and residents of the Republic of Armenia.|
• For renovation purposes - the property which is being renovated,
• For Purchase purposes – the acquired real estate property,
• In case of purchasing an apartment in a building under the construction the acquired apartment or another existing fully completed residential real estate (apartment or private house) must be pledged, or the right to acquire real estate and available funds on the constractor's special account,
• In case of loans granted for private/home construction - another real estate property belonging to the borrower or co-borrower is to be pledged besides the land on which the house is being constructed.
|Maximum Loan term submitting for refinancing|
90 days starting from the origination date.
|According to the Loan Refinancing Procedures' Minimum quality standards (MQS)|
|Insurance of pledged property and life insurances of borrower and co-borrowers in compliance with the requirement of MQS. In cases defined in MQS a mortgage loan insurance can be applied.|
|All over RA.|
|• In case of property purchase loans, when the seller and acquirer are members of the same family, mortgage loans are not going to be refinanced (in accordance with the RA Law on Banks and Banking).
• Mortgage loan is not considered as qualified in case it does not meet the “Prevention of Money Laundering and Financing of Terrorism” Legislation.
The first Master Loan Agreement beetwen the Company and the first PFI was signed on July 07, 2009.
The Company currently cooperates with 23 financial institutions - 16 commercial banks and 7 credit organizations.