YEREVAN, November 16. /ARKA/. As part of cooperation with SIL Insurance company VTB Bank (Armenia) said today it will be providing mortgage loans with low down payment for young people involved in the government-backed Housing for Young Families program. The bank said in a press release that the down payment will be insured by SIL Insurance company.
According to the bank, this type of insurance will allow to cut the prepayment amount to 10%, and the borrowers will not be obliged to mortgage their houses. Until now, low prepayment as part of this program was possible only on condition that the house was to be mortgaged as additional collateral.
The bank said the insurance premium is 2% per annum, calculated as difference between the minimum required prepayment and the actual prepayment that the client is ready to make, and is paid by the client at the time of receiving the loan.
It is remarkable that as soon as the value of the loan /collateral reaches 70% as a result of subsequent repayments (80% when real estate is purchased from the developer), the insurance premium is no longer paid, i.e. the insurance is paid until the clients with their payments (including after receiving the loan) reach the required prepayment amount.
More detailed information on the terms of mortgage lending at VTB Bank (Armenia) and the basic terms of prepaid insurance can be found on the official website of the bank at www.vtb.am, in its branches or by calling 87-87.
VTB Bank (Armenia) CJSC became a participant of the international financial group VTB in 2004. Currently, VTB Bank, the second largest in Russia, owns 100% of VTB Bank (Armenia). The bank runs 67 branches across Armenia. -0–0-
