How to Refinance a Loan in Armenia in 2026: Terms, Banks, and Process

Refinancing a loan in Armenia in 2026 remains one of the primary ways to reduce the debt burden without changing the original purpose of the loan. A borrower takes out a new loan from a different bank, and the proceeds are used to pay off the existing obligation. As a result, the interest rate, term, or repayment schedule is modified.

In this article, we will break down exactly what qualifies as refinancing, who truly benefits from it, which Armenian banks offer such programs, and how the process works step-by-step.

We are examining a typical refinancing scenario where the borrower seeks to reduce monthly payments or total interest costs without changing the loan’s purpose. This analysis uses standard bank offers, excluding individual promotions or special conditions. This approach allows for an assessment of the general logic and practical feasibility of refinancing rather than isolated cases.

What is Loan Refinancing?

Refinancing involves securing a new loan to fully repay a current one held at another bank. Following this, the borrower continues to make payments under the new agreement but with revised terms.

It is important to distinguish refinancing from similar financial adjustments:

1. Restructuring: Changing the terms within the same bank without moving the loan.
2. New "Cash-in-Hand" Loan: Funds are paid to the borrower rather than directly to close the old debt.

In Armenia, you can refinance:

1. Consumer loans
2. Mortgages
3. Asset-backed loans
4. Multiple loans simultaneously (consolidation into a single agreement)

As a rule, refinancing interest rates fall within the same ranges as standard consumer loans. There is no separate "discount" market for refinancing rates; conditions are shaped by the same market principles as those for new borrowers.

Who Benefits from Refinancing

Refinancing makes sense if you want to reduce your debt burden and improve the terms of your current loan. It is most commonly used in the following situations:

1. High Current Interest Rate

If your existing loan was issued during a period of tighter monetary policy and its rate is significantly higher than current market offers, moving to another bank can lower your monthly payment or the total interest paid.

2. Multiple Simultaneous Loans

Consolidating two or more loans into a single agreement simplifies debt management and allows you to establish a unified payment schedule.

3. Overburdened Budget

By extending the loan term, you can reduce the monthly financial pressure and stabilize your personal or family budget.

4. Change in Financial Profile

If your official income has increased or your credit history has improved since you first took out the loan, a bank may be able to offer you better terms than before.

Which Armenian Banks Offer Refinancing in 2026: AFM Analysis Results

In 2026, consumer loan refinancing in Armenia is not available at every bank and is implemented through various formats. An analysis by AFM reveals which credit institutions actively offer refinancing, where such products are absent, and which cases require further clarification.

Banks with Confirmed Consumer Loan Refinancing

As of early 2026, 9 out of 17 banks publicly offer consumer loan refinancing or the buyout of obligations from other banks:

1. IDBank – A comprehensive program with detailed published terms, debt consolidation options, and additional funding availability.
2. AMIO Bank – An active program requiring real estate collateral, offering a rate reduction compared to the current loan.
3. Evocabank – Refinancing for secured loans (real estate, vehicles) under a dedicated product.
4. Unibank – Specialized refinancing secured by gold (U-Gold), without requiring real estate.
5. VTB Armenia – A universal loan with a refinancing option (current terms require additional verification).
6. Ararat Bank – The "AraratFix" program featuring promotional terms and the possibility of increasing the loan amount.
7. Inecobank – A promotional offer for loan transfers, confirmed via official social media channels.
8. Converse Bank – A specialized refinancing program exclusively for military personnel of the RA Ministry of Defense.
9. Armeconombank (AEB) – Refinancing available as part of a credit line (non-traditional format).

Note: Interest rates for refinancing at these banks generally fall within the same ranges as standard consumer loans. The market does not offer specific "subsidized" rates solely for the act of refinancing.

Banks Where Consumer Loan Refinancing Was Not Identified

In 7 banks, dedicated consumer loan refinancing programs were not found at the time of the study:

1. ACBA Bank – Only mortgage refinancing is available.
2. Ardshinbank – Refinancing is offered only for business loans.
3. Fast Bank – The "Restart" program is targeted toward corporate clients.
4. Byblos Bank Armenia – Refinancing is strictly within the corporate segment.
5. ArmSwissBank – Offers consumer loans, but no refinancing option is stated.
6. Artsakhbank – Standard consumer loans without a refinancing option.
7. Mellat Bank – No refinancing program was found.

The absence of a dedicated product means the bank does not position refinancing as a standalone solution, even if it theoretically might consider a loan transfer under a standard consumer loan.

Special Status: Information Not Confirmed

Ameriabank The bank conducted a large-scale consumer loan refinancing campaign in 2016; however, as of early 2026, current terms are not published on the website or in official documents. For banks in this category, individual clarification at a branch is required.

The Refinancing Process

The procedure in most Armenian banks follows a similar structure.

Step 1: Analyze the Current Loan

The borrower must determine:

1. The remaining balance of the debt.
2. The current nominal and effective interest rates.
3. The remaining term until full repayment.
4. The presence of any fees or restrictions on early closure.

Step 2: Compare Bank Offers

It is essential to compare not only the nominal rates but also:

1. The Effective Interest Rate: This includes all mandatory costs.
2. Fees: Application, service, or monthly maintenance fees.
3. Income Requirements: Whether the bank requires a specific salary level.
4. Additional Conditions: Insurance requirements, collateral, or account maintenance costs.

Step 3: Submit the Application

Applications can typically be submitted online or at a branch. Usually, the following are required:

1. Proof of identity (ID card or passport).
2. Details regarding the current loan.
3. Proof of income (if specified by the terms).

Step 4: Bank Review

The bank evaluates:

1. Solvency: Your ability to make the new payments.
2. Credit History: Your track record of previous repayments.
3. Loan Eligibility: Whether the current loan meets the specific refinancing program's criteria.

Step 5: Repayment of the Old Loan

Upon approval, the new bank transfers the funds directly to the previous credit institution to close the existing debt.

Step 6: Signing the New Agreement

The borrower receives a new payment schedule and begins servicing the loan under the updated terms.

Timeline

1. Unsecured Consumer Loans: Typically take from a few days to 1–2 weeks.
2. Asset-backed or Mortgages: These take longer; due to property appraisal and registration procedures, the process can extend over several weeks.

Conclusion

For refinancing in 2026, banks are setting terms based on the same market principles as standard consumer and collateralized loans.

Who it Benefits Most:

1. Borrowers with a high current interest rate.
2. Clients managing multiple loans simultaneously.
3. Those whose income has increased or whose credit history has improved significantly.

Refinancing is not advisable if the interest rate difference is minimal or if additional fees and associated costs outweigh the potential savings. It may also be disadvantageous if the remaining loan term is short or if your income is unstable, leading the bank to offer less favorable terms. Therefore, before applying, it is crucial to calculate not only the new monthly payment but also the total interest paid over the life of the loan.

You can compare current bank offers, refinancing terms, and calculate your specific savings using the tools provided by AFM.