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Real Estate Acquisition and Renovation Loan "Malkhasyants 6/1"


Real Estate Acquisition and Renovation Loan (Malkhasyants 6/1)

The loan is provided by "Converse Bank" CJSC (hereinafter referred to as the Bank) to RA citizens and/or resident individuals,  for the purpose of acquisition (right to purchase ) or renovation of real estate in the building under construction at 6/1 Malkhasyants 6/1 street, c. Yerevan, Ajapnyak district, (developer: "Malkhasyants 12").



6,000,000 - 70,000,000 AMD/equivalent in foreign currency


36 - 240 months



US dollars


Annual interest rates per currencies

Value calculated at the Reference price1 of the loan/collateral

Interest rates

Up to  80%


The first 36 months - 10.50%, after which (CBFR2+ 4.01)%

The first 36 months - 9.25%, after which (CBFR2+ 8.92)%

The first 36 months - 7.50%, after which (CBFR2+ 7.80)%


11.09 - 13.02%

9.73 - 11.63%

7.84 - 9.71%

80 - 89%


The first 36 months - 11.00%, after which (CBFR2+ 4.51)%

The first 36 months - 9.50%, after which (CBFR2+ 9.17)%

The first 36 months - 7.75%, after which (CBFR2+ 8.05)%


11.64 - 13.59%

10.00 - 11.91%

8.11 - 9.98%


in case of securing additional real estate or deposit / bond, up to 100% of the actual acquisition value


The first 36 months - 11.50%, after which (CBFR2+ 5.01)%

The first 36 months - 9.75%, after which (CBFR2+ 9.42)%

The first 36 months - 8.00%, after which (CBFR2+ 8.30)%


12.20 - 14.82%

10.27 - 12.83%

8.38 - 10.88%

Loan application review  fee

5,000 AMD  (One-time fee for loan disbursement՝ applaying for a loan)

Provision fee

25,000 AMD One-time fee - charged before loan disbursement

Credit account service fee

3,000 AMD-monthly

Under renovation


1,500,000 - 20,000,000 AMD / equivalent foreign currency


36 - 120 months



US dollars


Annual interest rates per currencies


The first 36 months - 12.50%, after which (CBFR2+ 6.01)%

The first 36 months - 9.00%, after which (CBFR2+ 8.67)%

The first 36 months - 8.00%, after which (CBFR2+ 8.30)%


13.66 - 22.41%

9.79 - 18.11%

8.71 - 16.91%

Loan application review  fee

5,000 AMD (One-time fee for loan disbursement՝ applaying for a loan)

One-time fee for loan disbursement

0.5% of the loan amount, minimum AMD 25,000

                             (It is charged before the loan disbursement)

Credit account service fee

2,000 AMD-monthly

 Financing option under the terms and conditions of "National Mortgage Company" RCO CJSC and "Apartment for Youth" RCO CJSC is also available

 1Reference price is determined by the Bank approved the value for one square meter of real estate, which is up to $ 800 for the 4th floor apartments, $ 850 for the 5th-6th floors, $920 for the 7-9th floors. 10-12 floors - $1,000, 13-14 floors - 1,050 AMD equivalent to USD,multiplied by the total area of the acquired real estate, expressed in square meters.
2CBFR- Converse Bank Floating Rate It is set twice a year by the Bank on the basis of the primary indicators, and in the event of unavailability of the latter - based on secondary indicators. In case of change, the nominal interest rate of the existing contracts changes no sooner than one month after the borrower is notified.
Key indicators: In case of AMD, the yield curve of 180-day government bonds of the Republic of Armenia, published by the Central Bank of Armenia at; In the case of USD or EUR, respectively, the "6-month ICE LIBOR US Dollar" and "6-month ICE LIBOR Euro" benchmarks, published by the Intercontinental Exchange (ICE) at https://www. website:
Secondary indicators: In case of AMD, the refinancing rate set by the CBA; In the case of the US dollar, the Federal Reserve Bank interest rate on the Federal Funds or the upper limit of the range; In the case of the euro, the European Central Bank's marginal lending facility rate.
Moreover, in case of inaccessibility of the main indicators and the use of secondary indicators , the nominal interest rates on CBFR financing established based on the secondary indicators shall be set so that the nominal interest rate remains unchanged under the change in the fixed component of the financing interest rate.
The specified CBFR rates are published on the Bank's official website at and are available on the Bank's premises.
The Bank may change the floating rate of this loan no more than twice a year. The maximum floating rate increase threshold is set at +/- 4 percentage points. The size of CBFRs can be rounded up to one hundredth.
CBFR values as of the date of Termsheet update. AMD - 7.73%, USD - 0.33%, Euro -0.3%.
3The actual annual interest rate, in addition to the fees specified by the Bank, includes other fees required to obtain the loan: collateral valuation, single statement, notary charges and pledge registration fees.
Upon purchase, notarization, registration and unified reference fees are not included in the actual annual interest rate calculation, as the customer is required to make these payments regardless of whether the purchase is by means of loan or without loan (cash price).


   General terms and conditions

 List of payments made by the customer

Collateral assessment costs (applicable to additional real estate mortgages)

8,000 - 10,000 AMD 

Single reference

10,000 AMD 

Notary validation

20,000 AMD

Registration of property rights in the RA Cadastre Committee

45,000 AMD 

Registration of the right of pledge in the RA Cadastre Committee

27,000 AMD 

Tariffs for savings accounts opened for the borrower in case of loan disbursement

In case of loans in AMD

For one savings account in AMD



annual service


In case of foreign currency loans

One savings account in AMD and one in foreign currency (according to the loan currency)



annual service


Other terms in accordance with the provisions on opening and servicing of Bank accounts.

If the customer already has savings accounts in the mentioned currencies, new accounts may not be opened, instead the terms of the existing ones will be edited accordingly.

Early repayment of the loan

The borrower has the right to repay the loan in whole or in part in advance, including through refinancing.
In case of early repayment of the loan amount or part of it, the Bank will reduce the total cost of lending, including the total interest payable under the loan agreement and service charges.
At the borrower's discretion, the Bank will reduce the amount of monthly payments in proportion to the amount repaid in advance, leaving the loan repayment period unchanged, or reduce the loan repayment period, leaving the amount of monthly payments unchanged.

Fines and penalties

        In case of breach of the repayment terms stipulated in the contract, the Borrower shall pay a fine to the Bank at the rate of 0.13% of the overdue amount for each day of default.
Repayments of overdue liabilities are repaid in the following order: fine/penalty, interest, service fee, principal amount.

           In case of early loan repayment, the borrower pays a fine to the Bank.

  • 0.6% of the early repayment amount of the loan, if the early repayment takes place during the first year of the loan agreement,
  • 0.4% of the early repayment amount of the loan, if the early repayment takes place during the second year of the loan agreement,
  • 0.2% of the early repayment amount of the loan, if the early repayment takes place during the third year of the loan agreement.
    No penalty is envisaged for early repayment of the loan for the remaining period of the loan agreement. 

Consideration time 
 At least 7 days prior to the conclusion of the loan agreement, the Bank will provide you by hand or by mail a loan agreement proposal and a draft loan agreement. The proposal to conclude a loan agreement is valid for 7 business days from the day following the date of its submission to the borrower.


  1. The terms and conditions of the borrower also apply to co-borrowers.
  2. The prepayment of the acquired property at the moment of submitting the loan application is credited to the special account of the developer opened in the name of "Malkhasyants 12" OJS.
  3.  Master Loan Agreement (hereinafter MLA) is signed with all borrowers: in case of loans in AMD - for  180 months, and in case of loans in Euro - for 240 months.
  4.  In case of renovation loans, the borrower undertakes to complete the renovation works within the period specified in the contract, but not later than within 1 year, after which the purpose of the loan is subject to monitoring.
  5. At the time of applying for the loan, the sum of applicant's age and loan term should not exceed 65.
  6. The age of the pledger (if different from the borrower) at the time of loan application should not exceed 70 years.
  7. Credit history requirements.  
  •  At the time of considering loan application, the borrower/co-borrowers should have no overdue loans, as well as existing loan obligations classified stricter than "standard" class (including guarantees).
  • During the year preceding the loan application date, the applicant should not have classification for any loan under stricter than "non-standard" class, as well as should not have arrears in terms of all for a period of up to 25 days in total (conditions do not apply to guarantees).
  • Persons running a common household with the applicant should not have any existing overdue loan liabilities or  classification for any loan under stricter than "non-standard" class (including guarantees) at the time of loan application review.

Loan repayment methods

  1. Annuity (Equal monthly repayment), with principal and interest accrued in variable portions.
  2. "Spring" (decreasing monthly repayment), in which the principal amount is included in equal portions, and accumulated interest is variable.

The acquisiton loan, providing the loan / collateral ratio does not exceed 60%, can be provided with a grace period of up to 12 months.
The grace period is provided from the beginning of the loan term, during which only the interest accrued on the balance of the received loan is subject to repayment.
The renovation loan can be provided for up to a grace period of up to 6 months, during which the borrower can receive all or part of the loan.
The loan can be provided on phased basis (maximum in 5 disbursements), moreover, in case of the loan amount exceeding 10 million AMD / equivalent foreign currency, the condition of phased disbursement is mandatory.

Collateral security

 In case of acquisition

  • Collateral for the acquired real estate (if completed)
  • Right of purchase collateral, in which case, upon receipt of the ownership certificate, at the request of the Bank, it will also be pledged in favor of the Bank  within a maximum period of 5 days:
    -if the degree of completion is 50% - 79%,
    -in case of completion over 80 - at the discretion of the bank
  • Collateral of the funds or a part of them deposited by the Buyer on the developer's special account, upon availability of an agreement on pledge in favor of the Bank.
  • In case of absence of prepayment for the acquired property, additional real estate collateral is required.
  • Guarantor or co-borrower4 if necessary.

In case of renovation

  • The loan must be secured by collateral of the renovated real estate or the latter's right to purchase and / or by collateral of additional real estate or funds in a special account.
  • Guarantor or co-borrowerif necessary.
    4borrower's family member can act as a co-borrower or guarantor; if a co-borrower is present, no guarantor is required.

Loan/collateral ratio

In case of acquisition

  • Up to 100% of the actual cost of the acquisition, but not more than 90% of the value calculated at a reference price.
  • In case of additional real estate collateral - up to 100% of the actual acquisition  value but not more than 90% of the total collateral value (sum of the value of the acquired property (right to purchase), calculated at the reference price, and estimated realisable value of the mortgaged property).
  • The amount of lending under FLA shall be established as «Acquired asset's value calculated by reference price plus 20%», and in case of pledging additional property-  «Total of the acquired asset's value calculated by control price plus 20% »andof 80% of realizable value of additional property. 

  In case of renovation

In the case of clients with a real estate loan from the building, 90% of the appraised liquidity of the pledged property is reduced by the sum of the balances of the existing loans secured by the same collateral.
In all other cases, up to 70% of the appraised liquidity of the pledged property is reduced by the sum of the balances of the existing loans secured by the same pledge.

Requirements to the Guarantor
Legal entities and individuals may act as guarantors.

  • Must have a stable proven income or ownership/co-ownership for immovable and/or movable property,
  • At the time of loan disbursement may have a maximum of 3 current guarantees against liabilities of other persons whose liabilities are not overdue;
  • should not have problem loans at the time of loan disbursement, nor overdue liabilities of 30 days or more during the last 12 months;
  • cannot simultaneously act as a co-borrower.  

Explanatory information on the guarantee

If the borrower fails to fulfill his/her obligations, the guarantor will pay on behalf of the borrower, the guarantor's credit history will deteriorate as well, and the guarantor may be deprived of his/her property.

 Converse Bank:

  •  Will provide the guarantor with an example of loan and guarantee agreements and a repayment schedule,
  • The communication will be carried out in the manner chosen by the guarantor,
  • notify at least 7 days in advance of the change in the terms of the contract,
  • Will send reminder of existing obligation 1 day in advance
  •  In case of delayed repayment of the loan, will notify the guarantor not later than within the following day.

    The guarantor has the right to:
  •  At any time request the Bank for information on the size of the loan balance,
  • get a refund of loan-related payments made, as well as of other losses incurred on behalf of the borrower.

Deferral of regular repayment 

Deferral of regular repayment may be provided based on the borrower client's application. The purpose of deferral of repayment is to allow for non-payment ("missing") of the regular repayment established by the loan schedule upon temporary change of financial flows (vacation, etc.), in which case the total amount to be repaid for the given month (principal + interest) is proportionally redistributed to repayments of subsequent months (In case of monthly service applied, it is also redistributed and added to the service amount of the next regular repayment month).
The following restrictions apply on the applicability of the 
deferral on regular repayment :

  • The possibility of deferral of regular repayment is applicable for loans serviced for at least 6 months.
  •  Deferral of regular repayment is not applicable during the grace period, as well as in the case of loans with a revised loan schedule.
  •  At  the time of filing the application for deferral of the regular repayment, there should be no more than 6 days in arrears in total on the loan under consideration; the class of the loan should be "standard", the borrower should not have overdue liabilities to the Bank, as well as there should be no payment delay on the repayment preceding the one under consideration for deferral.
  • In case of loans with a term of less than 60 months, the deferral on regular repayment can be granted no more than once during the entire loan term.
  •  In case of loans with a term of 60 months and above, throughout the entire term of the loan (except for the last 2 years defined by the loan schedule) the deferral of regular repayment may be granted for up to 5 times, however not more often than once during the reporting year.

Example of calculating interest rates 

Example of calculating interest rates 

In case of loan with the following terms and conditions:

Loan amount:

20,000 USD

Nominal interest rate


Repayment period

10 years

Repayment type


Interest composition

Monthly repayment (principal amount+ interest)


Total interest


Total of repayments



Loan interest is calculated based on the nominal interest rate applied to the deductible balance, and the actual annual interest rate shows how much the loan will cost you when you make timely interest payments and all the related mandatory fees and payments related to loan disbursement.
The procedure for calculating the annual actual interest rate can be found at the following address:

Valuation of collateral

  • No valuation of the acquired property is required,  the reference price is taken as a basis.
  • The additionally pledged is subject to valuation by one of the property valuation companies cooperating with the Bank. The valuation company is selected by the Customer. The  report on appraisal of market/realisable value of the property is valid for 2 months from the report date. An additional revaluation may be required if necessary (e.g. price changes).

List of valuation companies

Communication with the Bank
  You have the right to communicate with Converse Bank CJSC in any format at your discretion - by postal mail or by electronic communication methods. It is most convenient to receive information electronically, as it is available 24/7, free from the risk of loss of paper-based information and ensures confidentiality.

Provision of statements, references and other information (including VAT) 

  •  Provision of a statement by the method preferred by the customer, at the frequency defined by the RA legislation and / or by the contract: 0,
  • Provision of additional statement on mortgage loans (including submission to the RA State Revenue Committee) 4 times a year, for the period specified by the customer: 0
  •  Provision of the statement in addition to the periodicity defined in the previous points1:
    -dating back up to 3 years  - AMD 1,000
    -Dated back to 3 years and more (in case it is available in the bank ) -  AMD 3,000
  • Statement1 for submitting to different institutions:
    -In case of accounts opened within a month2 AMD 5,000
    -In case of accounts opened earlier - AMD 3,000
  •  Reference based on the application submitted through the Bank's website - 3,000 AMD
  • References / Letters
    On transactions made
    -For transactions dated back up to one month - AMD 3,000
    -For transactions dated back more than one month - AMD 5,000
    Notice of agreement on consecutive pledge/alienation of property pledged in the Bank - AMD 6,000 for each pledged property
  • Transaction support documents and copies of other documents (for each document)
    -Dated back up to 1 month  - AMD 1,800
    -Dated back up to 1 year - AMD 3,000
    -Dated back more than one year - AMD 12,000 

Tariffs for other services (including VAT)

  • Mail delivery of statements or other documents
    In the Republic of Armenia and Artsakh - 0
    -Tariff set by the shipping service provider, if established by law and contract.
    -In other cases, the fee set by the shipment service provider + AMD 1,500
  •  Delivery of references or other documents via Ordered mail shipping
    -Within Armenia and Artsakh- AMD 3,000
    -International -  fee set by the shipment service provider + AMD 3,000
  • Provision of Bank consent for registration of family members at the address of pledged real estate (regardless of number of registered persons) - AMD 3,000
  • Granting consent for modification of documents on real estate property pledged with the Bank3: 0.5%, minimum AMD 12,000 , maximum AMD 60,000
  •  Granting consent for the lease of pledged real estate property- AMD 12,000
  • Partial release of pledged property based on the application of the pledgor or the borrower (except for the pledge of  cash as well as  unallocated metal accounts) - AMD 20,000 (per property)
  •  Loan terms revision4- 0.5%, minimum AMD 12,000


1In case of simultaneous provision of a statement and reference to the same Customer and charge envisaged for the reference, the charge will be collected for reference only.
2In case of more than one active account, the opening date of account which has been opened earlier is taken into consideration irrespective of whether or not included in the statement.
3The tariff shall be calculated on the basis of the estimated initial value of the collateral.
4The tariff is calculated based on the amount of loan provided. The tariffs are set at the time of submission of the application by the customer for revision of the loan terms.

Required documents


Loan Application Form


Identity documents of the borrower, co-borrowers, persons running the common household with them, guarantors, pledgors, Public service number or a certificate issued by the body maintaining the state population register on not receiving a PSN (not required if an identification card is submitted)


A reference to the place of residence with the indication of family members living together.


Certificate from the workplace, with date of issuance as of the date of submission to the Bank should not date back to more than 30 calendar days (a copy of the annual individual report submitted by the employer may also be required)
Such certificate may not be required if the applicant has received his/her salary through the Bank for at least 6 months prior to applying.


In the case of other non-business activities (eg investment activities, leasing of property, investments in deposits, etc.), a reference of income from those types of activities should be submitted.


In case of entrepreneurial activity:

·       Reference on income received from business activities - for legal entities

·       Financial analysis for sole proprietors and individuals

In case the applicant is a sole proprietor, a reference from the State Revenue Committee on the latter's obligations to the state, and in case of engaging in activities requiring licensing or permission to carry out certain activities, also a relevant license and/or permit, if the latter is a significant factor influencing the borrower's income.


Photos of the renovated property, both before  performance of works and after disbursement of each installment.


Cost estimate of planned renovation works


Original Certificate of ownership, acquisition grounds for the    purchased, renovated, additionally pledged property, and owner's identification documents


Unified reference on the Real Estate Unit provided by the RA Cadastre Committee on any encumbrances of the pledged property (submitted after the loan is approved)


Marriage, Divorce Certificates (if available) of Borrower/Pledgers


Preliminary valuation conclusion/act on collateral is submitted before the loan is approved


Announcement of the price of the acquired property, and if a certain advance payment has been made - the documents confirming such payment


Consents by the borrower, co-borrower, guarantor, pledger on making ARCA request and ACRA reports (prior to loan approval)


Other documents required by the Bank.



Due to the change in the foreign exchange rate, the actual annual interest rate and the amount of loan repayments may change.

If you fail to fulfill or incompletely fulfill your obligation,  within three business days this information will be provided to the credit bureau  where your credit history is formed. Having a bad credit history can negatively affect your creditworthiness in the future. You have the right to receive your credit history report for free once a year from the credit bureau.

Your property may be confiscated by law if you fail to make your interest and loan repayments on time.

In case of insufficient funds to repay your credit liabilities, they may be repaid at the expense of your other property and/or that of the guarantor, as prescribed by the RA legislation.

In accordance with the RA Law on Combating Money Laundering and Terrorist Financing, on the basis of the Know Your Customer Principle, the Bank may require the Customer to provide additional documents or other information, as well as ask questions during verbal communication, for the purpose of conducting due diligence of the Customer.  

The Bank may collect additional information in accordance with the terms of an agreement with the US Government under the Foreign Account Tax Compliance Act (FATCA) to determine your eligibility for being a US taxpayer.

The Bank is entitled to modify and supplement the tariffs for additional services provided by notifying the Customers in accordance with the contract, by posting a relevant message on its own website (, by posting announcements on the Bank's premises, by sending a notification by post, and by any other methods  proposed by the Bank selected at the Customer's preference, which is considered a due notification of the Customer.

 Factors for positive or negative decision on providing the loan

The Bank is inclined to provide the loan if:

  •  The applicant complies with the terms and limiting conditions of the loan,
  • At the request of the bank, the applicant secures its credit liabilities with collateral,
  •  The applicant is recognized as creditworthy as a result of the assessment,
  • The documents and references submitted by the applicant are reliable and include all necessary information;
  •  The applicant's credit history is either positive or missing.

Failure to comply with any of the above conditions, as well as other requirements of the Bank's internal regulations, may result in refusal to provide the loan.

Time periods for notifying the customer of the decision to provide the loan and for the loan disbursement.

-The decision-making proces takes a maximum of 10 banking days.

-The customer is informed within one day.
-Loan agreements are concluded within a maximum of 3-5 banking days after the Client submits the complete package of documents to the Bank.
-The actual loan is provided to the client as soon as he/she receives the certificate on the right to pledge from the relevant state bodies.

Venue for loan formalities and method of disbursement    

Loan is provided at Head Office and Branches
In case of purchase, the loan amount is transferred directly to the developer's account. In case of renovation, the loan amount is disbursed to the borrower by way of depositing it to the borrower's bank account.

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Procedure for resolving disputes

Any disputes and disagreements between the Customer and the Bank shall be resolved first by mutual negotiation, and should the agreement not be reached by such methods, the disputes and disagreements shall be resolved in accordance with the procedure prescribed by the RA legislation both per court procedure, and through financial system obmudsman.

Notice on Financial System Mediator

Please be informed that according to the RA Law on Financial System Mediator, in case of property claims arising out of services rendered to you by Converse Bank CJSC, disputes and disagreements for not exceeding million AMD or equivalent foreign currency may be resolved through the Financial System Mediator.
According to an agreement between the Bank and the Office of the Financial System Mediator, the Bank waives the right to challenge the Financial System Mediator's decisions only in relation to property claims not exceeding 250,000 (two hundred and fifty thousand) AMD or equivalent currency, and on transaction amounts not exceeding 500,000 (five hundred thousand) AMD or equivalent foreign currency.

Address: 0010 Yerevan, Khorenatsi str. 15,
"Elite Plaza" business center, 7th floor
Email: [email protected]
Telephone: (+37460) 70-11-11
Fax: (+37410) 58-24-21:

Contact with the Bank
For more details and more information you can:
-visit the Bank's website at
-visit the Bank's Customer Service at the Head Office or any branch
-Call: 374 10 511211
-Viber: 374 95 511211
-Skype: conversebank-callcenter

Updated on 24.08.2021