Consumer Loan with Collateral

Flexible and easy loans

We offer you lower rates and peace of mind to reach your financial goals.

Quick consumer loan with real estate collateral

You need money, but you don’t have much time to wait. FINCA will make your wish come true even if your incomes are not registered.

  • Individual Approach and Flexibility
    Unburden your finances with our grace period of up to 6 months annually, making it easier to stay on top of your commitments.

  • Transparency and Simple Lending
    Make your journey easier – loans up to AMD 1,000,000 don’t require a guarantor, simplifying your path to prosperity.

  • Trustworthy Financing
    With us, it’s all about simplicity – no annual interest rates, disbursement fees, or early repayment penalties, so you can experience a hassle-free borrowing journey.

  • Extensive Loan Maximums
    Your dreams, our support – provide you with funds up to AMD 25,000,000 to reach your goals.

  • Accessibility
    We’re here for you everywhere – with 30 FINCA branches in every region of Armenia, accessibility to all villages and communities is guaranteed.

Loan Calculator

Calculate

* The following calculation is informative and may change slightly.

Apply Online

Applying for a loan with us is a straightforward and convenient process.

  • 1

    Apply Online
    Fill in our easy online application form.

  • 2

    Receive a Call
    Our operator will call you in less than 15 minutes and double check details with you.

  • 3

    Approval & Disbursement
    Upon visiting the nearest FINCA branch, your Mortgage loan will be approved within 5 business days.

Start your application

Applying for a loan with us is a straightforward and convenient process.


About the Loan

Main terms and conditions
Justification of incomeIn case of registered incomeIn the absence of registered income
Loan currencyAMD
ProgramImprovement of living conditions, other consumer goals
Loan amount1 000 000 – 25 000 0001 000 000 – 15 000 000
Loan maturity12–24 months25–60 months12–24 months25–60 months
Loan annual interest rate10%
Loan annual percentage rate129,52% – 49,53%33,31% – 47,04%33,82% – 55,57% 37,32% – 52,58%
Loan service fee [monthly]21,5%1,65%1,7%1,85%
Loan disbursement fee [one off]20%
Loan disbursement methodnon cash
debt-to-income ratioMaximum 55%100% (family expenses are also included in total liabilities)
Customer requirements
  • Individuals registered in RA, whose place of business is within FINCA’s service area.
  • Age: 21-70: the sum of the client’s age at the time of applying and the expected loan period should not exceed 70 years.
  • Stable income during at least the previous 6 months.
  • Borrowers should act on their behalf and for their benefit; taking a loan on behalf of a third person is prohibited.
  • Overdue payments of no more than 30 days in total during the previous 6 months. Moreover, in the absence of registered income, each delay is not more than 15 days.
  • Borrowers should act on their behalf and for their benefit; taking a loan on behalf of a third person is prohibited.
  • The loan can be provided to more than one borrower (co-borrower), in which case the requirements set for the borrower are also extended to the co-borrower.
Minimum requirements4 for loan security

In case of registered income

In absence of registered income

Rate of credibility

  • Sustainable source of income
    Availability of guarantor (If necessary by the decision of credit committee)
  • The loan can be provided to more than one borrower (co-borrower), in which case the requirements for the borrower also apply to the co-borrower.

Loan/Mortgage ratio

Maximum 80%

Maximum 50%

Loan repayment
  • The loan is repaid in equal monthly repayments consisting of the principal, interest and service fee.
  • Grace period6 of up to 3 months per year is available.
Other terms and conditions

Loan disbursement in tranches

Maximum 3, moreover, the amount of one tranche cannot be less than AMD 500,000.

Maximum 3, moreover, the amount of one tranche cannot be less than AMD 500,000.

Parallel loans(the maximum amount of consumer loan total liability) with unlimited quantity

In case of registered income
Maximum AMD 25,000,000

In the absence of registered income
Maximum AMD 15,000,000

Notes
  • Depending on the repayment schedule, the loan term can be extended to a maximum of 45 days.
  • Calculated according to the agreed amount.
  • The actual annual interest rate shows how much the loan will cost if interest and all other mandatory payments related to the loan are paid in accordance with the established procedure. The procedure for calculating the actual annual interest rate is given below. It is determined based on the assessment of the client’s creditworthiness.
  • The loan amount is transferred to the client’s account.
  • Monthly repayments of total liabilities (including repayments of existing and requested loans) relative to the total net income of the family.
  • If there is only an external guarantor, a family member of the borrower, if he is married, a spouse, is registered as an affiliated person.
  • Grace period: the period during which no interest on the loan (other payments) and the principal amount of the loan are paid or only interest is paid (other payments). Preferential repayment: repayment consisting only of interest and service charges (if applicable).
  • Tranche: a general loan is approved by signing a single loan agreement, but the disbursement is partial, after fulfilling the pre-approved conditions for each tranche. One or both of the tranches can be provided in the form of a new loan at FINCA’s current rates. In case of approval of a loan in installments, the collateral contract can be signed for the entire amount of the loan, or for each tranche separately. Maximum disbursement period between the first and last tranche 6 months.
Required Documents (To Be Submitted In Person)

Required

  • ID cards of the borrower and the guarantors or their passports and social security cards
  • Email address of the borrower

Additional

  • Proof of income
  • Other documents upon request
  • Documents are submitted in paper form at the time of submitting an application for a loan or within three days after that.
Factors Influencing The Loan Decision

Positive factors

  • Sufficient level of creditworthiness
  • Good credit history

Negative factors

  • Insufficient level of creditworthiness
  • Bad credit history
  • Lack of loan
  • Non-compliance with the set customer requirements
  • Provision of false or untrustworthy information
  • Other credit risks
Timing

Loan application decision

Up to 4 business days

Written or oral notification of the positive decision to the applicant

Up to 1 business day

Written (paper or electronic) and verbal notification to the applicant about the negative decision

Up to 2 business day

Loan disbursement

Up to 20 business days after the submission of the application

Term of validity of credit committee’s decision

Up to 15 business day

Other Notes
  • The borrower can apply for the loan in all FINCA branches.
  • Before signing the contract you will receive an individual sheet which will show your individual loan terms.
Early Repayment
  • The borrower can repay the loan earlier than stipulated by the payment schedule without incurring penalties. Upon early repayment, together with the reduction of the principal, the borrower’s total credit expenses (interest, other fees) are reduced proportionally, except for the cases when the payer submits a different written order. Penalties and other fees incurred as a result of failure to properly fulfill obligations stipulated by the RA legislation and the loan contract, as well as the fees defined by the Article 15 of the RA Law on Consumer Credit are not reduced. Upon full early repayment of the loan, the borrower pays the service fees and other charges, interest and principal amounts calculated as of the payment date.
  • Payments for future months can be made in advance by submitting a written order. Repayments for each upcoming month are made in the following order: 1) service fees and other charges, 2) interest, 3) principal.
Warnings And Penalties
  • “In case the borrower breaches the contractual obligations, FINCA may change the interest rate of the loan following the order provided by the contract and the terms constituting an integral part of the contract.
  • In case of failure to fulfill the contractual obligations according to the payment schedule, the borrower is obligated to pay a PENALTY for each overdue day in the amount of: 1) 0.13% of the overdue principal, 2) 0.13% of the overdue interest.
  • If the borrower fails to repay the principal on time, application of the contractual interest rate towards the overdue amount is terminated and a 24% annual interest rate is applied from the day of breaching the schedule till the loan repayment date. If the amount paid is not sufficient to cover all overdue obligations, the creditor’s expenses incurred in efforts to receive the due payments from the borrower are paid first, followed by the service fees, penalties, interest and principal. This order may change per the creditor’s decision based on the borrower’s written request.
  • In case of failing to fulfill your loan obligations, this information is sent to the credit bureau where your credit history is formed. Bad credit history can prevent you from receiving a new loan in the future.
  • In case of not fulfilling your loan obligations on time, your property may be confiscated in accordance with the law.
  • If the collateral is insufficient to cover loan obligations when repaying them at the expense of the collateral, payments are made at the expense of your other property.

The annual percentage rate calculation is based on the following formula:

where
A – the initial loan amount
n – the sequence number of the installment for loan repayment
N – the sequence number of the last installment for loan repayment
Kn – the amount of the nth installment for loan repayment
Dn – the number of days between the loan disbursement date and the date of the nth installment for loan repayment
i – the annual percentage rate

Calculation Example

Loan amount

AMD 5,000,000

Loan maturity

60 months

Fees related to the registration of the deposit

45 000 AMD

Loan servicing fee

1,65%

Loan Repayment

57 months equal monthly repayments 3 months grace period

Loan disbursement day

20 June 2022

Loan first repayment date

July 20, 2022

Loan annual percentage rate

35,19%

  • In the cases and according to the order provided by the contract and the terms constituting an integral part of the contract, FINCA has a right to unilaterally change the interest rate of the loan by up to +5 percentage points but not more than twice the bank reference rate set by the Central Bank of Armenia. The borrower should be notified about the change 7 business days prior to its entry into force.
  • Loan statements provided on the spot; other information is provided within 10 business days upon request. Provision of statements and other information is free of charge.
  • You can communicate with FINCA by using the channel of your preference: either postal services or electronic communication. It is more convenient to obtain information electronically as it is free of the risk of losing information on paper.
  • To compare the loan types offered to individuals and to choose the most suitable option, you can visit the electronic platform Your Financial Directory at www.fininfo.am.
  • When pledging property as collateral for a loan, a need to use third party services arises. The prices of those services and the respective service providers are presented below.
ServiceState Agency Or Cooperating Organization Providing The ServicesService Fee

Ratification of the pledge agreement

Notary Offices of the RA

AMD 3,000 – 20,000

Registration of pledge rights with respect to real estate

Cadastre Committee of the RA

AMD 3,000 – 30,000

Provision of a unified certificate on the real estate unit

Cadastre Committee of the RA

AMD 500 – 10 000

Registration of pledge rights with respect to agricultural machinery

The Ministry of Justice of the RA

AMD 2,000

Registration of pledge rights with respect to vehicles

Records and Examinations Divisions of the Road Police Service of the RA Police

AMD 2,000

Provision of a certificate on limitations with respect to vehicle alienation

Records and Examinations Divisions of the Road Police Service of the RA Police

AMD 3,000

Bank transfer (transfer of service fees)

RA banks

AMD 300 per transfer

Independent appraisal of real estate pledged as collateral

Cost Consult LLC
Oliver Group LLC
A.G. Borsa LLC
VM RP LLC
Gardi LLC
Finlaw LLC

Depending on the type and size of the property, minimum AMD 5,000

Current terms are effective as of January 3, 2022, based on FINCA UCO CJSC Management Board resolution 174/2021, 30.12.2021.

Customer Success

“I had a very positive experience with this FINCA product. When I faced an expense related to fulfilling my family goals and needed a significant amount of money, I applied to FINCA and was offered a loan against my home. The process was fast and simple. At that time, I didn’t have the time or opportunity to submit the necessary documents for a loan, and this type of loan provided me with the chance to address my issues within a short period of time.” – Hasmik

Frequently Asked Questions

The required documents include a Passport, Proof document of employment and/or other income

Yes, you can. Available limit will be Even if you don’t have a regular and registered income

The total process can take a 4 business days

Yes, you can pay off your loan early without penalty

We are always happy to talk

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