EE and green renovation loans

The National Mortgage Company, in cooperation with the French Development Agency and the European Union, has successfully completed the second phase of the "Jerm Ojakh" program, aimed at improving housing conditions and energy efficiency.

The target group within the program consists of low- and middle-income households. The program is designed to promote energy-efficient renovations of residences for low- and middle-income populations, as well as to encourage financial institutions to provide small-scale and longer-term loans for the purpose of financing energy-efficient renovations.

Following the completion of the second phase of the "Jerm Ojakh" program, it continues within the framework of the Green Financing Program.

EE and green renovation loans

EE and green renovation loans

The loan product is intended for the energy efficiency (EE) improvement of a residential house/apartment.

At least 30% of the loan amount must be used for the energy efficiency improvement of a residential house/apartment and the replacement of old household appliances (purchase of new ones). The proportion allocated to household appliances cannot exceed 10% of the total loan amount.

Energy efficiency improvement includes:

  • Heating systems,
  • Thermal insulation of the external walls and roof of the house/apartment ,
  • Windows and external doors,
  • Solar photovoltaic systems and solar water heaters,
  • Energy-efficient lighting,
  • Household appliances.

The list of household appliances that can be replaced (purchased) with loan funds includes the following appliances that meet high energy efficiency standards (A++ and above):

  • Refrigerator,
  • Washing machine,
  • Air conditioner,
  • Dishwasher.

The materials/equipment used for energy efficiency improvement and household appliances, as well as their minimum EEI requirements, are presented in the Company's Housing Loan Refinancing Procedure and Green Standards։

If the total costs of energy efficiency measures constitute 90% or more, the specified loans will be considered Renovation Green Loans, provided that they do not finance household appliances and heating systems.

Under the program, the home improvement project costs shall be assessed by the Energy Efficiency Assessment Tool,which is available on green.nmc.am website.

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

From AMD 275 thousand up to AMD 45 mln

Loan term

Minimum of 5 years

OTI*

Maximum of 45%**

Annual interest rate

Defined by PFI (average estimated interest rate is 13.90%)

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

Property to be renovated***

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

**In the case of loans up to 5 million AMD, the max OTI is set by the partner bank/credit organization.

*** For renovation projects up to AMD 5 mln real estate collateral is not required.