Green construction loans

The "Im Taniq" housing energy efficiency loan products were developed and implemented within the framework of a joint project between the National Mortgage Company and the German KfW Bank. The program aims to contribute to the development of the overall mortgage market in the Republic of Armenia, including the financing of housing energy efficiency, as well as to promote the reduction of carbon dioxide emissions and energy savings resulting from energy-efficient investments.

After the completion of the "Im Taniq" program, it continues within the framework of the Green Financing Program. The criteria for compliance with energy efficiency (EE), green standards, and the requirements of the program are presented in the sections describing different loan products.

Green construction loans

Green construction loans

This loan product is intended for the construction of a residential house that meets the Green Standards defined under the Program.

Specifically, the property under construction is considered Green if the thermal insulation of the walls and roof, the windows and glazed areas, as well as the external doors of the residential house under construction, comply with the requirements of the Green Standards.

Within the framework of the Program, the preliminary estimate for the construction loan must be prepared using the energy efficiency assessment tool available at  green.nmc.am.

Beneficiaries

  • The borrowers must be citizens of the Republic of Armenia
  • The borrowers must have no current delinquent liabilities
  • During the twelve-month period preceding the loan origination date, the overall number of delinquent days for all the liabilities of the borrower must not exceed 30 days.

More detailed information can be found in  Housing Loan Refinancing Procedure.

Loan amount

Up to AMD 45 mln

Loan term

Minimum of 10 years

OTI*

Maximum of 45%

Annual interest rate

Defined by PFI (average estimated interest rate is 13.66%)

Interest rate type

Fixed

Loan currency

AMD

Insurance

  • Pledged property insurance, whose coverage must be at least equal to the loan amount.
  • Insurance that will pay off the mortgage loan if the borrower dies from a covered event. The coverage must be at least equal to the loan amount.

Collateral

Land or the building under construction․

Other requirements

To limit urbanization and ensure that the programs financed by the Company do not support new projects leading to changes in land use, evidence must be provided that the purpose of land use has not changed in the last 12 months.

*OTI calculation includes monthly payments of all the loans that a borrower has, including the mortgage loan.