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Real estate acquisition and renovation loan (23/3 - 23/9 Bagrevand district)

Real estate acquisition and renovation loan (23/3 - 23/9 Bagrevand district)   

The loan is provided by Converse Bank CJSC (the Bank) to RA citizens and/or individual residents for acquisition and renovation of houses (right of purchase) under construction at 23/3 - 23/9 Bagrevand district (constructor TOWN SHIN LLC).

Loan terms



AMD 2,000,000 - 72,000,000 or equivalent FX


AMD 2,000,000 - 30,000,000 or equivalent FX



36 - 240 months


24 - 180 months





Annual interest rates1 by currencies









(CBFR3 + 3.16)%, currently

(CBFR + 7.39)%, currently

(CBFR + 8.92)%, currently

(CBFR + 17.13)%, currently

(CBFR + 7.05)%, currently

(CBFR + 13.95)%, currently


12.48 - 20.62%

17.30 - 24.00%

9.73 - 17.54%

19.03 - 24.00%

7.03 - 14.53%

14.62 - 23.01%



- Up to 90% of benchmark price6

- Up to 70% of benchmark price

- Upon pledge of extra real estate, 100% of actual purchase price, but no more than 70% of the total sum of the Benchmark Price of the real estate (right of purchase) to-be acquired and the market value of the additional property

- If cash-covered under deposit/bond agreement(s), the collateral value is the difference between the Benchmark Price of the property and the max LTV ratio


- Upon having AMD loan for acquisition of real estate in the building, up to 90% of market value of the pledged property minus the total sum of outstanding loan(s) backed with the same property

- Upon having AMD loan for acquisition of real estate in the building, up to 70% of market value of the pledged property minus the total sum of outstanding loan(s) backed with the same property

- Upon having a loan for acquisition of real estate in the building and pledge of additional real estate, up to 70% of total market value of the whole property (under renovation and additionally pledged) minus the total sum of outstanding loan(s) backed with the same property

- In other cases, up to 70% of the estimated market price of the pledged property

Financing can also be provided on the terms of National Mortgage Company RCO CJSC and Home for Youth RCO CJSC


1 Based on the customer’s creditworthiness, credit history and LTV ratio.
2 The annual nominal interest rate is calculated based on the CBFR applied at the point of loan approval and is fixed for the first 24 months for FX loans and for the first 12 months for AMD loans, and thereafter the interest rate becomes floating.
3 CBFR – Converse Bank Floating Rate: is set by the Bank twice a year based on the key rates, and unless the latter are available, based on the secondary rates. Upon change, the nominal interest rate of current agreements is revised no sooner than 1 month after notifying the borrower thereon.
Key rates: for AMD – the yield curve of the RA 180-day discount bonds that is published by the Central Bank of Armenia at; for USD or EUR – the “USD 6-month ICE LIBOR” and EUR 6-month ICE LIBOR” benchmarks accordingly that are published by Intercontinental Exchange (ICE) at
Secondary rates: for AMD – the refinance rate set by the CBA; for USD – the federal funds rate set by the US Federal Reserve Bank or the upper limit of the range; and for EUR – the Marginal lending facility rate set by the European Central Bank.
Furthermore, upon the inaccessibility of key rates and the application of secondary rates, the nominal CBFR financing rates are set based on the secondary rates so that the nominal interest rate remains unchanged upon the change of the fixed component of the financing rate.
The CBFR is published on the official site of the Bank and are available at the Bank.
The Bank can change the floating rate of this loan no more than twice a year. The floating rate can raise or drop at +/- 4 percentage points max. The CBFR values can be rounded to the nearest hundredth.
The CBFR at the date of updating the bulletin is: 8.59% for AMD, 0.33% for USD and -0.3% for EUR.
4 Actual annual interest rate, apart from the payments set by the Bank, includes other fees, such as evaluation of collateral, uniform statement, notarization and registration of lien.Upon acquisition, the notarization, ownership registration and uniform statement fees are not included in the calculation of the actual annual interest rate, since they are to be paid by the customer irrespective of the form of acquisition – with a loan or cash price.
5 The lowest from the Benchmark Price and the actual acquisition price of the real estate is taken as a basis.
6 The Bank has set the Benchmark Price of the real estate:
- equivalent of USD 135,000 in AMD for 6 houses under Project A
- equivalent of USD 150,000 in AMD for 1 house under Project B
For USD or EUR loans, the loan amount is calculated at the Bank’s USD or EUR cash sell rates at the date of loan application (published on
The Bank can decide to take the estimated liquid value, rather than the Benchmark Price of the property as a basis.

 General terms and conditions

  Fees to be paid by the customer


Processing fee

AMD 5,000 (charged one-time when recording the loan application)

Origination fee

0.5% of loan amount, AMD 50,000 min (charged one-time before disbursement)

Collateral evaluation cost (applied to additionally pledged real estate and renovation loans)

AMD 18,000 - 25,000

Uniform statement

AMD 10,000


AMD 20,000

Registration of ownership with RA Cadaster Committee

AMD 45,000

Registration of lien with RA Cadaster Committee

AMD 27,000

Savings account opening rates for borrowers

AMD loans

Per savings account



annual servicing


FX loans

Per AMD and per FX (corresponding to loan currency) savings account



annual servicing


Other terms: based on account opening and servicing rates of the Bank

Where the customer already has savings accounts in the above currencies, the new accounts may not be opened, and the terms of the existing accounts will be aligned with the aforementioned.

Early repayment

The borrower can repay the loan in full or in part ahead of schedule, including through refinancing.
Upon early repayment of the loan in full or in part, the Bank will decrease/refund the total lending cost, the total interest payable under the loan agreement and the origination fee among others on pro rata basis. The processing fee, state duties (notarization, registration of lien, etc.) and collateral evaluation fee are not reducible/refundable.
At the borrower’s choice, the Bank will reduce the amount of monthly installments proportionate to the early repaid amount by keeping the loan maturity unchanged, or will reduce the loan maturity by keeping the amount of monthly installments unchanged.

Penalties and charges

  • Upon default of due dates under the Agreement, the Borrower pays the Bank a penalty at 0.13% per day of delay.
    Upon repayment of overdue liabilities, the payments are made in the following sequence: penalty – interest – principal.
  • Upon early repayment of the loan, the borrower pays a penalty to the Bank:
    - At 0.6% of the early repaid amount, where the early repayment is made in the 1st year of the loan agreement,
    - At 0.4% of the early repaid amount, where the early repayment is made in the 2ndt year of the loan agreement,
    - At 0.2% of the early repaid amount, where the early repayment is made in the 3rd year of the loan agreement.
    No penalty is applied to the early repayment for the remaining period of the loan agreement.

Deliberation time

At least 7 days before the conclusion of the loan agreement, the Bank will submit the Loan Offer and the draft Loan Agreement to you either in person or by mail. The Loan Offer is valid for 7 business days starting from the next day of delivery.

Terms and restrictions

  1. PTI ≤ 60%:
    PTI – the ratio of the max monthly principal and interest installments, and loan servicing and insurance fees (if any) based on the schedule to the total net monthly revenues of the borrower/co-borrowers.
  2. For loans of AMD 25,000,000 and above or equivalent FX – OTI ≤ (PTI + 10%).
    OTI – the ratio of the max total sum of principal and interest installments, and loan servicing and insurance fee (if any) based on the schedule for the particular loan and all other loans of the borrower/co-borrowers at the date of crediting to the total net monthly revenues of the same parties.
  3. Once the loan application is approved, the prepayment for the property is transferred to the special constructor account opened on behalf of TOWN SHIN LLC.
  4. The Bank concludes Principal Loan Agreement (PLA) for 240-month period with all borrowers.
  5. The PLA loan amount is set at up to “Benchmark price of to-be acquired property plus 20%” and upon the pledge of additional property at “Benchmark price of to-be acquired property plus 20%” plus 80% of market price of additional property.
  6. For renovation loans, the borrower undertakes to complete the renovation works in the timing fixed in the agreement, but no later than in 1 year, after which the target use of the loan should be monitored.
  7. The apartment owned by the borrower is renovated.
  8. The sum of the applicant’s age and the loan maturity should not be above 65 at the date of loan application.
  9. The pledger’s age (if other than the borrower) should not be above 70 at the date of application.
  10. The pledge of cash under deposit/bond agreements expires at least in 4 years.
  11. Upon expiration of the deposit agreement, the latter is deemed extended on the same terms until the full repayment of liabilities that are backed with cash under the particular agreement.
  12. The release of cash under deposit/bond agreements can be executed after the revaluation of the real estate, unless the LTV exceeds the maximum ratio.
  13. The Bank insures the pledged property at least to the outstanding loan amount with one of the partner insurers, and the Bank acts as a beneficiary.
  14. Requirements for credit history
  • At the point of consideration of the loan agreement, the borrower/co-borrower should not have credit liabilities (including guarantees) classified overdue and/or stricter than Standard, except when a well-grounded document is disclosed about the repayment of the overdue amounts.
  • In 1 year before the loan application, the borrower’s/co-borrower’s
    - Total delays per loan (both existing and repaid) should not exceed 30 days irrespective of the amount of overdue liabilities and/or total overdue liabilities should not exceed AMD 10,000 or equivalent FX irrespective of the number of overdue days (the terms do not cover the guarantees);
    - Total delays of all loans (both existing and repaid) should not exceed 50 days irrespective of the amount of overdue liabilities and/or total overdue liabilities should not exceed AMD 20,000 or equivalent FX irrespective of the number of overdue days (the terms do not cover the guarantees).

    Repayment options
  1.  Annuity (equal monthly installments) where the principal and the accrued interest are variable.
  2. Descending (descending monthly installments), where the principal is fixed and the accrued interests are variable.

Renovation loan can be disbursed with tranches (5 max), and where the loan amount is above AMD 10 M or equivalent FX, the loan is always disbursed with tranches.


For acquisition of real estate

  • Pledge of acquired real estate (if construction is complete)
  • Pledge of right of purchase, in which case the ownership certificate will also be pledged on behalf of the Bank on the latter’s demand in 5 business days at most after the receipt of the same
    - if the level of completeness is up to 80%,
    - at the Bank’s discretion, if the level of completeness is above 81%
  • Pledge of funds transferred by the Buyer to the special constructor account in full or in part, in the presence of an agreement about pledge on behalf of the Bank
  • Pledge of additional real estate
  • Pledge of cash under deposit/bond agreement(s)
  • Presence of co-borrower/guarantor, as required*

For renovation of real estate

  • Pledge of real estate under renovation or right of purchase (only if the level of completeness is above 81%) or additional real estate
  • Presence of co-borrower/guarantor, as required*

* The Borrower’s family member can be a co-borrower/guarantor, and the terms and conditions set for the Borrower refer to the co-borrowers as well.

Requirements for guarantor

Legal entities and individuals can be guarantors.

The guarantor

  • should have proven sustainable revenues and/or immovable property subject of ownership and/or co-ownership and/or movable property subject to state registration
  • can have 3 current guarantees max at the point of disbursement, backing third-party liabilities that are not overdue
  • should not have non-performing liabilities at the point of disbursement and 30-day and longer overdue liabilities in the recent 12 months

Explanatory information about guarantee

Unless the borrower performs their liabilities, the guarantor has to pay instead of the latter, the guarantor’s credit history will impair as well and the guarantor may lose the own property.

Converse Bank will

  • provide the guarantor with the copies of the loan and guarantee agreements and the repayment schedule
  • communicate with the guarantor in the manner preferred thereby
  • notify about the changes of the agreement terms at least 7 days in advance
  • remind about the liability 1 day in advance
  • notify the guarantor about the delay of repayment at latest after 1 day

The Guarantor can

  • at any time request information from the Bank about the outstanding loan
  • get the refund of the sums paid thereby from the borrower and other loss incurred instead of the borrower

Deferment of regular installment

The regular installment can be deferred based on the borrower’s application. The purpose of deferment is to allow “missing” the regular installment in the period of temporary changes in financial flows (vacation, etc.), and the total amount (principal + interest) payable in the particular month is distributed equally over the following months (the monthly servicing fee, if any, is added to the servicing fee amount of the following month).


  • The deferment of the regular installment is applied to loans having been serviced for 6 months at least.
  • The deferment of the regular installment is not applied in the grace period, and to the restructured loans.
  • At the date of application for the deferment of the regular installment, the loan should not have delays longer than 6 days in total, the credit risk should be Standard, the borrower should have no overdue liabilities to the Bank, and the preceding installment should have been made in due time.
  • For loans at less than 60-month maturity, the regular installment can be deferred only once through the effective period of the loan.
  • For loans at 60-month and longer maturity, the regular installment can be deferred 5 times at most through the effective period of the loan (except for the final 2 years set in the schedule), and can be deferred no often than once in the accounting year.

Interest calculation example

For loans on below terms

Loan amount

USD 20,000

Nominal interest rate



10 years



The interest amount will make

Monthly installment (principal + interest)


Total interest


Total installment


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 here:

Evaluation of collateral

  • The evaluation of the acquired property is not needed, the benchmark price is taken as a basis.
  • The real estate under renovation or additionally pledged is subject to evaluation by one of the partner evaluators of the Bank. The customer selects the evaluator. The market/liquid value evaluation report is valid for 2 months from issuance. Additional evaluation may be needed as required (e.g. change of market prices).

List of evaluators 

  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 statement with periodicity prescribed by RA legislation (once) in the customer's preferred way: - 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 a statement in addition to the periodicity specified in the previous paragraphs 1:

- Dated 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 release 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

In 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.
2 In 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.
3 The tariff shall be calculated on the basis of the estimated initial value of the collateral.
4 The 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


ID document, Public Services Number or a reference to the absence of PSN (not required if ID card is disclosed)


Employer’s reference that is valid for 20 calendar days from the date of disclosure to the Bank (the copy of employer’s annual individual report may be required as well)

The reference may not be required where the customer has been paid salary through the Bank in 6 months before the date of application.


For non-entrepreneurial activity (e.g. investment activity, lease of property, investments in deposits, etc.), reference to revenues from that activity


For businesses:

·       Reference to revenues from business for legal entities

·       Financial analysis for sole proprietors and individuals


For sole proprietors, SRS statement on the latter’s liabilities to the state, and for businesses needing licensing or special permit, also the respective license and/or permit if the latter has essential impact on the borrower’s income


Pictures of the property under renovation before the planned renovation and after the disbursement of each tranche


Cost estimate of renovation works


Original copy of ownership certificate and supporting documents for the property to be purchased or renovated, and the additionally pledged property


Real Estate Uniform Statement issued by the RA Cadaster Committee referring to the restrictions on the pledged property (to be filed after the approval of the loan)


Marriage certificates of borrowers/pledgers (if any)


Preliminary evaluation note (to be filed before the approval of the loan)


Evaluation report (to be filed after the approval of the loan)


Proofs of prepayment (if any)


Reference to the absence of property tax and other liabilities of the constructor in the accounting year


Consent to inquiries of borrower, co-borrowers, guarantors and pledgers (to be filed before the approval of the loan)


Constructor’s statement


Other documents as required by the Bank


The actual annual interest and the amount of loan installments can vary based on the change of the exchange rate.

Upon default or incomplete performance of obligation by you, your data will be disclosed to the credit bureau in 3 business days, where your credit history is created.  The presence of an adverse credit history may prevent you from getting a loan in the future.  You can get your credit history from the credit bureau free of charge once a year.

Your property can be confiscated in due order unless you make your interest and principal installments in time.

Unless the sum from the sale of collateral suffices for the repayment of your credit liabilities, the latter can be repaid at the expense of your and/or the guarantor’s property in compliance with the RA laws.

For the purpose of the Customer’s due diligence in compliance with the RA Law on Combating Money Laundering and Financing of Terrorism, the Bank can demand additional documents or other information from the consumer and as well ask additional questions to the customer on “Know your customer” principle.

Based on the Foreign Account Tax Compliance Act (FATCA) Agreement concluded with the USA, the Bank can collect additional information to clear out your status of a US taxpayer.

The Bank can revise and amend Tariffs and Rates by giving a notice to the customers in the manner set under the agreement: by posting a message on the Bank’s website (, by making the information available in the Bank’s premises, by post delivery and by other methods offered by the Bank and selected by the Customer, which shall be deemed the proper 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 takes up to 10 banking days,
  • The Customer is informed within one day,
  •  The loan agreement is concluded with the customer within 3-5 banking days after submission of the complete package of documents by the customer.
  • The actual disbursement of the loan to the customer is performed upon receiving the certificate of pledge right from the relevant state authorities.

Venue for loan formalities and method of disbursement

Loan is provided at Head Office and Branches.
The loan amount is transferred directly to the seller / developer’s account. In case of loan for repair the loan amount is disbursed to the borrower by way of depositing it to the borrower's bank account.

Your financial directory
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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 mediator.

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 10 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 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