About The Program

A portion of the renovation loan must be used for energy efficiency improvements. This minimum amount is 20% for apartments and 30% for individual houses.  These funds must be used for energy efficiency measures, including alternative energy sources. For houses, eligible expenses also include thermal insulation of exterior walls and roofs.

The support program is valid until July 1, 2025.

The following measures are considered to be compliant with energy efficiency standards:

• Thermal insulation of walls, roofs, and interfloor ceilings
• Procurement of energy-efficient building materials
• Procurement, replacement, or installation of exterior doors and windows
• Procurement, replacement, or installation of a heating or water heating boiler (gas or electric) and heating system components (pipes, sections, etc.)
• Procurement and installation of cooling systems, energy-efficient fans, air conditioners
• Procurement and installation of solar systems (water heaters, photovoltaic)
• Procurement of LED lamps and luminaires

No more than 10% of the total loan amount can be used to purchase household appliances (at least A+ energy efficiency class refrigerator, washing machine, dishwasher, electric oven, electric hob, electric water heater). The purchase of household appliances is not considered an energy-efficient measure.

At least 80% of the total loan amount and 100% of the amount spent on energy efficiency measures must be documented with proof of payment (e.g., payment order, cash register receipt, invoice payment, bank or card transfer, or a document confirming delivery/acceptance of goods, work, or services).
 

Requirements

Citizens of the Republic of Armenia who own or co-own an apartment or house in Armenia and who obtain financing for energy-efficient renovations after the program's effective date are eligible to apply.

Attention

It is possible to apply for support after the developer has the apartment's completion certificate.

Required Documents

In addition to the documents required by the bank or credit organization, the following must also be submitted:

• The ownership certificate for the apartment or house being renovated.
• A report from a licensed inspector (issued within the last 10 years) following a technical inspection of an apartment or house built before 2010 stating that it is not classified as having 4th-degree damage.

Amount of Support

The loan limit is:

• Maximum of 7 million drams for apartment renovation in an apartment building
• Maximum of 10 million drams for individual residential houses

Delivery Period and Procedure

• By the fifth business day of each month, the bank or credit organization must submit an application to the Ministry via email for the interest subsidy payment. This application must include the loan repayment schedules from the loan agreements with the borrowers, as well as copies of relevant documents.
• Within ten business days of receiving the application, the Ministry will review it for compliance and, following established procedures and timelines, transfer the subsidized amounts to the financial institution's designated account for the beneficiaries.
• No fees may be charged for services related to the loan, such as cash withdrawal fees, service fees, or commissions.
• The loan may be disbursed in a lump sum or installments, but only via non-cash transfer.

The interest subsidy will be suspended during the loan term in the following cases:

• In case of full repayment of the loan
• In case of non-target use of the loan by the borrower
• In case of false information provided by the borrower
• In case of the apartment (residential house) renovation works not being completed within a maximum of 12 months after the full provision of the loan
• In case of overdue liabilities of more than 90 days within the framework of the monthly payments made by the borrower during the loan term
• In case of the borrower receiving a loan from another financial institution to use the program more than once

Attention

If the interest subsidy is terminated, the subsidized amount disbursed up to that point must be repaid to the state budget of the Republic of Armenia.

Reference to Legislation

• RA Government Decision No. 775-L of May 26, 2022

The decision can be found at arlis.am