For the first time, VTB Bank (Armenia), together with Sil Insurance,  launches insurance of mortgage loans prepayment

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.