ArmInfo. For the first time, VTB Bank (Armenia), in cooperation with the Sil Insurance company, launches insurance for prepayment of mortgage loans provided under the program "Housing for Young Families". As ArmInfo was told by the Bank's press service the matter concerns insuring financial risks. In particular, of the 30% prepayment, the client pays 10%, and the remaining 20% paid by the bank are covered by financial risk insurance. In this case, the bank frees the borrower from the need to provide additional collateral in the form of real estate, as it was before.
Thus, insurance makes it possible to reduce the amount of a lump-sum prepayment to 10%. The insurance premium is 2% per annum of the 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. Subsequently, as soon as the loan / collateral ratio reaches 70% (or 80% when purchasing real estate from the constructor) as a result of subsequent repayments of the loan, the insurance premium is no longer paid. In other words, the insurance is valid until the client by making payments (including after receiving the loan) reaches the required prepayment amount.
"Until now, low prepayment within the framework of the" Housing for young families "mortgage program was possible only with the provision of additional real estate as an additional collateral," the statement reads.
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 www.vtb.am, in the branches of the Bank and the Contact Center at 87-87. According to the Financial Ratings of Banks of Armenia, prepared by ArmInfo as of October 1, 2018, VTB Bank (Armenia) is among the TOP-10 with a volume of 11.4 billion AMD or $ 23.6 million. In the total loan portfolio of the Bank, mortgage loans account for over 6 %, and in the total mortgage loans of the banking sector, the share of VTB Bank (Armenia) reaches 5%. In terms of its retail loan portfolio, VTB Bank (Armenia) is in the TOP-3 with a volume of 115.5 billion drams or $ 239.2 million, which is about 12% of total retail market loans and about 62% of the bank's loan portfolio. In y-o-y terms, the bank increased its retail loan portfolio by 37.7%. According to the ranking of insurance companies of Armenia prepared by ArmInfo, as of October 1, 2018, Sil Insurance ranks second in terms of premiums in the financial risks insurance segment - 90.6 million drams or $ 187 thousand, with a y-o-y increase 53-fold. In the total volume of insurance premiums of the company, the share of fees for this class is 2.5%, and in the total premiums of this class for the market, Sil Insurance's share exceeds 25%. By the number of contracts, both valid as of the reporting date and concluded during the period under review, Sil Insurance is leading - 40 and 18, respectively. To note, VTB Bank (Armenia) CJSC became a member of the international financial group VTB in April 2004. Currently, the second largest in Russia, PJSC "Bank VTB" owns 100% of VTB Bank (Armenia) shares. The bank is among the leaders of the banking system of the Republic of Armenia in terms of key indicators. The branch network of VTB Bank (Armenia) traditionally leads, covering 67 subdivisions with a presence both in the capital and in all regions of the country. To recall, the "Sil Insurance" has been operating since March 2000. The company's shareholder is the Sukiasyan family: Khachatur, Saribek, Edward and Robert Sukiasyans - 25% each. Sil Insurance is licensed for 11 classes of insurance.