VTB Bank (Armenia) offers student loans with improved terms

YEREVAN, September 11. /ARKA/. VTB Bank (Armenia) said today its clients could apply for student loans with improved terms as part of a government-designed program on refinancing the Housing for Young People cjsc.

According to a bank's press release, now the upper limit of a loan amounts to 4 million drams for the entire period of study, up from the previous 2.8 million drams. The maximum term of study to be paid for by the loan has also been increased from four to five years. Also, to obtain a loan, the obligatory surety of the student's parents or guardians is no longer required. Now, any other person can be asked to act a guarantor.

The state program is aimed at increasing the level of accessibility of higher education, which is one of the socially significant tasks of VTB Bank (Armenia). The program can be used by students of bachelor's and  master's and clinical residency, majoring at paid departments of state and state-accredited higher educational institutions.

The loan amount is 50 thousand drams to 800 thousand drams for one academic year (the maximum loan amount for the entire period of study is 4 million drams) at the rate of 6% or 7% per annum, depending on the student's academic progress. The repayment period is from three months to 10 years.

A student loan can be obtained by citizens and residents of Armenia aged 16 to 65. An important advantage of the program is that it is sufficient for the guarantor to have income, and in the absence of such income, it is possible to attract a co-borrower. 

A student loan can be taken to pay for any period of study. The loan is provided in tranches - one for each academic year. Under the new terms, the maximum number of tranches has been raised from four to five. The amount of each can be up to 800 thousand drams instead of the previous 700 thousand drams.

The process of issuing a loan takes only one working day after the conclusion of the loan agreement. The funds are sent on the same day to the bank account of the educational institution.

Another advantage of the program is the way  the loan is repaid. The borrower has the opportunity to choose a repayment way - to pay only interests during the period of study, and the principal amount after graduation. Loan commissions are not charged.

The loan is issued with an annual interest rate of 9%, of which 2% or 3%, depending on the student's academic performance, are subsidized by the state.

As part of the 14th program of the Armenian government to support the population during the state of emergency, clients can receive a student loan and take advantage of a special additional benefit: until the end of 2020, the loan will be serviced at an annual percentage rate of 0% or 4%, depending on the student's academic progress. The effective annual interest rate on the loan is 6.17% -7.33%.

Detailed information on the 14th program of the government can be found on the official website of the government.
More detailed information on the terms of the student loan can be obtained on the bank's website or by calling the bank's contact center at 87-87.

The bank is controlled by the Central Bank of Armenia.

CJSC VTB Bank (Armenia) became a member of the international financial group VTB in April 2004. Currently, the second largest PJSC "VTB Bank" in Russia owns 100% of shares in VTB Bank (Armenia). ($1 - 488.33 drams). -0-