Terms
tariffs
Energy-efficient renovation of apartments and individual residential houses
(The object of energy-efficient renovation is an apartment in an apartment building or
an individual residential house in the Republic of Armenia, except for those with 4th degree of damage)
Citizen of the Republic of Armenia with title to real estate in the Republic of Armenia
• Individuals aged 18-70, as well as their family members, who are citizens of the Republic of Armenia and who have borrowed credit funds from financial institutions for the energy-efficient renovation of their apartment (residential house) after the Program implementation procedure came into force.
(Family member: members of the Beneficiary's family, who, for the purposes of this procedure, are considered the Beneficiary's father, mother, spouse, spouse's parents, grandmother, grandfather, siblings, children, grandchildren)
• In the event that the borrower/co-borrower reaches the age of 70 during the loan servicing period, provided that 70% of the principal has been repaid, the application shall not be rejected.
"National Mortgage Company"
The Bank's own resources
apartment renovation in an apartment building 300,001-7,000,000
renovation of individual residential houses 300,001-10,000,000
AMD
60-84 months
36-84 months
14%
15%
14,94%-16,15%
(without interest rate subsidy)
- 14%, if the property being renovated is located in border or high mountainous settlements,
- 12%, if the property being renovated is located in rural settlements that are not border settlements,
- 11%, if the property being renovated is located in urban settlements that are not border settlements,
- 9%, if the property being renovated is located in Yerevan.
See the list of settlements in Appendix 1
- No guarantor in case of a loan of up to AMD 1,000,000,
- 1 guarantor in case of a loan of AMD 1,000,001- 5,000,000,
- No guarantor in case of a loan of AMD 1,000,001-3,000,000, only if purchased items are energy-efficient, where the OTI coefficient is up to 45%,
- 1 guarantor is required in case of a loan of AMD 5,000,001-7,000,000, where the OTI coefficient is up to 45%.
•In case of a loan of AMD 5,000,000-10,000,000 • 5,000,000-10,000,000 the collateral shall be the real estate under renovation
the collateral shall be the real estate under renovation
In all cases where the client avoids involving a guarantor, the pledge may be the real estate under renovation.
Up to 70%
Non-cash, provided lump-sum or in installments
Annuity (equal monthly payment of principal and interest)
• Where real estate is pledged, insurance coverage for the real estate is provided
• Insurance against accident is a mandatory requirement
! Insurance is provided for residual loan in favor of the Bank for the entire term of the loan, at the rates set by insurance companies cooperating with the Bank
• No insurance is provided in case of lending from the Bank's own resources
For a loan of up to AMD 5,000,000 up to 60%
For a loan of AMD 5,000,000-10,000,000 up to 45% up to 60%
0,1% daily
0,13% daily
None
None
None
• Days past due (current and repaid) in the last 12 months must not exceed 30 days*.
• At the time of making a decision on lending, existing credit obligations must not be overdue and/or classified as non-operational.
• At the time of making a decision on lending, existing guarantees must not be expired and/or classified as non-operating.
* If the borrower's outstanding obligation per a single loan does not exceed AMD 1,000 (one thousand), then the loan is not considered overdue.
- Statement on restrictions: AMD 10,000,
- Fee for state registration of rights: AMD 26,000 – 52,000,
- Notary certification fee: AMD 12,000-30,000,
- Collateral appraisal fee: AMD 15,000-25,000.
Regardless of fees paid to third parties as specified in these terms, the fees for services provided by them may change.
! Cases not regulated by these terms are regulated by the decisions of the Government of the Republic of Armenia No. 520-Լ as of 19.04.2022 and No. 775-Լ as of 30.05.2022.
Other provisions
1․ A renovation will be considered energy-efficient if, out of the total cost of the work to be performed, the aforementioned portions shall be allocated to measures aimed at increasing energy efficiency, which are acquisition, installation or replacement of alternative energy sources, energy-efficient construction materials used, energy-saving heating systems, external doors and windows, and in the case of an individual residential house, also the thermal insulation of external cladding and enclosing structures:
a. For apartments, at least 20%,
b. For residential houses, at least 30%,
c․ In the case of loans provided with refinancing of the National Mortgage Company, at least 30%.
For one apartment (residential house), interest rate subsidy for only one loan is provided within the framework of the Program.
2․ Energy efficiency criteria։
Waterproofing of walls, roofs, mezzanines,
Purchase of energy-efficient building materials,
Purchase, replacement or installation of exterior doors and windows,
Purchase, replacement or installation of heating or water heating boiler (gas or electric) and heating system components (pipes, sections, etc.),
Purchase and installation of cooling systems, energy-efficient fans and air conditioners,
Purchase and installation of solar systems (water heating, photovoltaic),
Purchase of LED lamps and luminaires.
The technical specifications for energy efficiency measures are defined by contract.
3․ No more than 10% of the total loan amount can be used to purchase household appliances (at least A+ energy efficiency class refrigerator, washing machine, dishwasher, electric oven, electric hob, electric water heater).
4․ Grounds for early termination of the subsidy:
Full repayment of the loan,
Use of borrowed amounts beyond the purpose of the loan,
Provision of false information by the borrower,
Failure to complete the apartment/residential house renovation within maximum of 12 months after extending the loan,
Overdue obligations of the borrower in terms of monthly payments in excess of 90 days, throughout the term of the loan,
Receiving by the borrower a loan from another organization for the purpose of additionally benefiting from the Program,
Other grounds under the Program implementation procedure.
5․ Loan expenditure areas and their requirements:
At least 70% of the total loan amount shall be used non-cash and for permitted purposes. At least 80% of expenses made from loan amounts and 100% of the expenses made for energy efficiency measures must be substantiated by documents confirming payment (payment order, cash register receipt, payment by invoice, bank or card transfer, document confirming the fact of acceptance and delivery of goods or work or service mutual act, protocol, etc.). For the purposes of the Program, the energy efficiency measures for which payment documents are not submitted, shall not be deemed as energy efficiency measures.
For an apartment (residential house) built before 2010 a summary (not older than 10 years) on the absence of 4th degree damage is required, as issued by a licensed professional based on a technical condition survey (the list of licensed persons in the field of technical condition survey of buildings and structures is published on the official website of the Urban Development Committee of the Republic of Armenia at www.minurban.am), or similarly an assessment report is required as issued by a person having a valid qualification certificate of an appraiser and registered with the authorized body, which would include information on the technical condition (degree of damage) of the property being assessed.
The cost estimate for renovation/furnishing works is completed through the link Renovation (nmc.am), and must be approved.