Best Cash Loans in Armenia in 2026: Ranking by Effective Interest Rate

When choosing a consumer loan, it is important to focus not on the advertised interest rate, but on the actual cost of borrowing, which includes all mandatory fees and payments. This indicator allows borrowers to accurately compare offers from different banks and clearly understand the real financial burden.

To determine which loans are truly competitive, AFM compared unsecured cash loans based on the effective interest rate, calculated using a single standard scenario – without temporary promotions or individual conditions.

AFM Comparison Methodology

The analysis is based on a unified baseline scenario:

1. loan amount: AMD 1,000,000;
2. term: 3 years;
3. unsecured consumer loan;
4. calculations based on official bank tariffs valid as of 15 January 2026.

Applying identical conditions to all banks makes it possible to objectively compare interest rates, fees, and total overpayment without distortions.

On the AFM platform, users can compare consumer loans offered by Armenian banks by their real cost, see all applicable fees, filter offers by term and amount, check availability for non-residents, and select a loan tailored to a specific financial need — without visiting a bank branch.

Why This Scenario Was Chosen

Loan amount of AMD 1,000,000:

1. available at all banks included in the comparison;
2. does not require collateral or guarantees;
3. avoids distortions caused by minimum loan thresholds or personalized programs;
4. allows accurate consideration of fees and the true cost of borrowing.

Loan term of 3 years:

1. corresponds to the average repayment period for consumer loans in Armenia;
2. clearly demonstrates the impact of fees on total overpayment.

What Is Included in the Comparison

AFM analyzes unsecured consumer loans in Armenian drams, taking into account:

1. the effective interest rate;
2. the repayment type;
3. all mandatory fees affecting the total cost of the loan.

Top Consumer Loans in Armenian Drams: Quick Comparison

Table note: The calculation is based on a loan of AMD 1,000,000 with a 3-year term, an annuity repayment schedule, and no early repayments. For the interest rate, the arithmetic mean of the range was used. Fees were converted into a monthly equivalent and added to the monthly payment burden.

Final Ranking by Actual Monthly Burden

1. AMIO Bank – lowest monthly payment including fees
2. Mellat Bank
3. Fast Bank
4. IDBank
5. Artsakhbank
6. VTB Bank Armenia – significantly more expensive due to a monthly fee

The effective interest rate is shown as a range. Final terms depend on the borrower’s profile, payroll arrangements, guarantors, and the bank’s internal credit decisions.

Important: How Fees Affect Total Overpayment

When interest rates are similar, fees are often the key factor that determines the final cost of a loan. They may be charged:

1. upon crediting the funds;
2. when withdrawing cash;
3. on a monthly basis throughout the entire loan term.

As a result, loans without fees or with minimal additional charges often turn out to be more cost-effective than offers with a lower nominal rate but a complex fee structure.

How to Choose a Loan Based on Your Needs

When selecting a loan, it is better to start not with the nominal interest rate, but with the actual monthly burden, including all fees and the repayment structure. This indicator shows how much money is actually leaving your budget each month.

If Your Goal Is the Lowest Monthly Payment

Based on the calculation for AMD 1,000,000 over 3 years, AMIO Bank demonstrates the lowest real monthly burden due to a moderate interest rate and a one-time fee that has only a minor impact on the monthly payment.

Closely following is Mellat Bank, where the interest rate is competitive, but the one-time crediting fee increases the effective cost of the loan.

If Predictability and No Hidden Costs Matter

Fast Bank remains the most straightforward option to calculate. The absence of one-time and monthly fees makes it easy to see the true overpayment from the start, without adjustments or additional conditions. This is especially convenient for borrowers who value transparency.

If You Need a Long-Term Loan

To reduce the monthly burden by extending the repayment period, IDBank’s “Profi” loan allows terms of up to 10 years. However, the cash withdrawal fee increases the total cost and should be considered when comparing it with shorter-term, fee-free alternatives.

If the Loan Is Needed Specifically in Cash

In this case, fees have a direct impact on the real overpayment:

1. AMIO Bank – 0.4% crediting fee;
2. IDBank – 0.20% cash withdrawal fee;
3. Mellat Bank – 1% crediting fee;
4. VTB Bank Armenia – 0.8% monthly fee, making it one of the most expensive options in terms of real burden;
5. Fast Bank – no fees, keeping the loan cost stable throughout the entire term.

Even with similar interest rates, the type and structure of fees can affect the total cost of a loan more than the difference in rates themselves, especially over longer terms. If needed, examples of total overpayment in AMD over the full term can be added to make the difference even clearer.

FAQ

Which loan is the most favorable in January 2026?

Based on the lower end of the effective interest rate range, Fast Bank leads.

Can a non-resident apply for a loan?

Yes. Certain loan products are available to non-residents, in particular at Fast Bank and AMIO Bank.

Is early repayment allowed?

Yes. Most banks allow early repayment from the first month without penalties.

Conclusion

As of January 2026, when choosing an unsecured consumer loan in Armenia, the decisive factor is the actual monthly financial burden, not just the stated effective interest rate. It is the combination of the interest rate and the fee structure that determines how much a borrower actually pays each month and over the entire loan term.

Based on the standard scenario of AMD 1,000,000 for 3 years, AMIO Bank demonstrated the lowest monthly payment when fees are taken into account, followed by Mellat Bank. Fast Bank stands out for its transparent structure – the absence of both one-time and monthly fees simplifies calculations and makes the total cost predictable.

IDBank remains a practical option for borrowers who need a longer loan term, but the cash withdrawal fee increases the overall cost. VTB Bank Armenia, despite offering a competitive interest rate range, results in one of the highest real payment burdens due to its monthly fee.

Since the effective interest rate is always presented as a range and final terms depend on the borrower’s profile and the bank’s decision, a proper comparison is only possible under identical conditions, with the same loan amount, term, and fee structure, and by assessing the total financial burden over the entire lending period.