National University of Architecture
and Construction of Armenia

On 14 March 2013 the program of “Education Loans Provided to Students (Subsidy for Loan Interest Rates)” was approved.

The main purpose of the Program is to provide a loan to the students having problems with the payment of tuition fee on better terms. The Program offers special conditions, interest rate and repayment schedules.

All the students who want to study at the universities but have no opportunity to pay for it they can receive student loans on more favorable terms under this Program.

In order to achieve the target the government will provide a partial subsidy for interest rate of loans provided under this Program.

The program is intended for students who are the citizens of the Republic of Armenia and study with paid bachelor’s and master’s education program of state higher education institution or non-state higher education institution of the Republic of Armenia having accredited educational programs as per specialties.

The loan currency is AMD.

The maximum loan amount is 1.800.000 AMD during the entire education period with a maximum of 4 consecutive shares. The amount of each share may be no more than 450 thousand AMD depending on the amount of tuition free for each specialty.

The maximum loan period is 10 years. During education a maximum of 4 years are considered as a grace period during which:

• The student makes only interest repayments;
• In case of receiving loans consecutively for 4 years and making only interest repayments during education after graduating from the university the student begins to repay also the principal amount.

The annual interest rate of loan is 12% of which the government:

1. will subsidize 2 percentage points;
2. will subsidize 3 percentage points for excellent students.

The loan provision method is in noncash. The loan amount is directly transferred to the education institution.

• A guarantee from the parents or the guardians of students is required.
• Commission fee is not required.
• Loan repayment: equal monthly payments.

The necessary references: a reference from the university where the student’s faculty, year and the amount of fee for academic year (the remaining amount of that academic year), bank account number of the university and the student graduation year and month should be mentioned. In case of excellent learning a mention should also be made on the excellence of the student during specific academic year.

Other terms:

• at the moment of receiving the loan the borrower shall not have any outstanding or not properly made loan commitments;
• fines and penalties are not subject to subsidy;
• the amount of interest payment to be subsidized is calculated against the declining balance of the loan amount.

HERE IS THE LIST OF BANKS THAT PROVIDE LOANS UNDER THE PROGRAM

1. “ANELIK BANK” CJSC
2. “AREXIMBANK-GAZPROMBANK GROUP” CJSC
3. “ARARATBANK” OJSC
4. “ARDSHININVESTBANK” CJSC
5. “ARTSAKHBANK” CJSC
6. “CONVERSE BANK” CJSC
7. “ARMBUSINESSBANK” CJSC
8. “ARMECONOMBANK” OJSC
9. “PROMETEY BANK” LLC
10. “VTB BANK (ARMENIA)” CJSC

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