How to Apply

To apply for loan settlement assistance, click the "Continue" button and follow these steps:

• Select the "Difficult Life Situation" (Կյանքի դժվարին իրավիճակ) section,
• on the following page, select the "Bad Loan Initiative",
• complete the digital identification process (You will need an "YesEm" account, which is Armenia’s national electronic identification system),
• enter your phone number and email address,
• check the two boxes to certify that the provided information is accurate,
• confirm and submit the application.

A notification will appear on your screen immediately after submission, informing you whether your application has been approved or rejected.

Requirements

To qualify for this support:

• The loan must have been classified as "bad" (unpaid) for at least 3 years,
• the principal amount of the loan must not exceed AMD 1 million (approximately USD 2,500),
• the applicant must be a formally registered employee in Armenia,
• the applicant must not already be a beneficiary of this specific program.

Scope of support

If your application is approved, the support is provided through three main mechanisms:

• the income tax normally paid from your salary will be redirected by the state to settle your outstanding loan balance,
• if your salary was being legally seized (garnished) for debt recovery, the deduction rate will be reduced from 50% to 20%,
• participating banks will waive up to 80% of the accumulated penalties and fines associated with the loan.

Processing timeline and procedure

The application is processed instantly by cross-referencing your data with state and banking databases.

You will see the result on your screen and receive a formal confirmation via email if approved.

The support begins on the 1st day of the month following your application and can last for a maximum of 24 months.

Reference to Legislation

Legal Reference RA Government Decree N 1990-L (December 12, 2024).
The decree can be found on arlis.am (please refer to the most recent version of the act)․