What Types of Loans Are Available in Armenia in 2026: Products, Rates, and Terms

The lending market in Armenia remains stable and well-segmented. Banks offer dozens of credit products, while loan terms vary significantly depending on the purpose of the loan, its maturity, currency, collateral requirements, borrower status, and participation in government programs.

In 2026, borrowers in Armenia have access to consumer loans, mortgages, credit cards, auto loans, targeted loan programs, and loans secured by gold. The actual cost of a loan is determined not by the product type itself, but by the usage scenario—namely the loan amount, term, currency, and applicable fees. To make an informed choice, it is essential to compare bank offers under identical conditions.

Main Types of Loans in Armenia in 2026

In 2026, loan products offered by Armenian banks can be broadly divided into several core categories, depending on the borrower’s objective, borrowing term, and the presence of collateral. Each category follows its own calculation logic, has different eligibility requirements, and creates a different level of financial burden. Therefore, meaningful comparisons are only possible within identical borrowing scenarios.

Below is a breakdown of the key loan types, including their basic terms and example calculations based on AFM’s standard scenarios.

What Credit Products Are Available on AFM

AFM provides comprehensive information on all loan types discussed in this article, including ranges of effective interest rates, fees, and key conditions. This allows borrowers to compare bank offers in one place and assess the actual financial burden based on the loan amount, term, and structure.

Consumer Loans

An unsecured loan in Armenian drams that can be used for any purpose: home renovation, purchasing appliances, travel, or refinancing existing obligations.

Key Terms in 2026

1. Loan amount: from AMD 300,000 to AMD 10–15 million
2. Loan term: from 6 months to 10 years
3. Currency: Armenian dram (AMD)
4. Repayment type: predominantly annuity
5. Collateral: not required

Interest Rates

1. Nominal rate: from 11%
2. Effective interest rate: on average 13–22%

It is important to note that the effective interest rate reflects the true cost of the loan, as it includes fees and mandatory charges.

Who It Is Suitable For

1. when quick access to funds is required;
2. when no collateral is available;
3. when the borrower has stable, documented income.

Top 5 Consumer Loans by Monthly Payment

A single AFM standard scenario was used for comparison:

1. Loan amount: AMD 10,000,000
2. Term: 5 years
3. Currency: Armenian dram
4. Repayment type: annuity

Since banks publish effective interest rates as ranges, the arithmetic average rate is used for calculation purposes. The monthly payment is calculated inclusive of all mandatory fees. The ranking is based on the monthly payment amount as the primary indicator of the actual financial burden.

Monthly payments are indicative.

For identical loan amounts and terms, Ardshinbank demonstrates the lowest monthly financial burden due to a lower average effective rate and the absence of fees.

Fast Bank remains a competitive option thanks to its simple, transparent structure without hidden charges, although its average rate is higher.

Loan products from AMIO Bank and IDBank result in a comparable financial burden, but require careful consideration of fees, which increase the total cost of borrowing.

Credit Cards

A revolving credit facility that allows cardholders to use the bank’s funds and repay the debt in installments.

Key Terms

1. Credit limit: from AMD 300,000 to AMD 18 million
2. Grace period: up to 45–60 days
3. Post-grace interest rate: 18–30% per annum
4. Fees: may apply for cash withdrawals

Key Features of Credit Cards

1. cost-effective only with disciplined usage;
2. not suitable for long-term borrowing.

Top 5 Credit Cards by Indicative Monthly Burden

The comparison is based on the following scenario:

1. Utilized limit: AMD 5,000,000
2. Currency: Armenian dram
3. Grace period: not used
4. Calculation rate: average effective rate

Under the given scenario, Visa Signature shows the lowest indicative burden despite higher maintenance fees. Premium cards are justified only when their benefits and privileges are actively used.

Mortgage Loans

Long-term loans secured by real estate.

Key Parameters

1. Term: up to 20–30 years
2. Down payment: from 10–30%
3. Currency: Armenian dram
4. Interest rate: from 7–9% with government support; without support – 10–13.5%

A mortgage is the cheapest loan in terms of interest rate, but also the most demanding for the borrower.

Top 5 Mortgage Loans on the Primary Market

AFM scenario:

1. Loan amount: AMD 23,100,000
2. Term: 30 years
3. Government support: not applied

Even a difference of 0.5–1 percentage point in the interest rate leads to a significant difference in monthly payments over a 30-year horizon.

Student Loans

Student loans have a specific structure: during the study period, only interest is paid, while the principal burden is formed later. For this reason, a correct comparison is based on the average effective interest rate, rather than on the monthly payment.

Gold-backed Loans

Short-term gold-backed loans are suitable for urgent financial needs. AFM conducted the comparison using a unified calculation scenario:

1. Loan amount: AMD 5,000,000
2. Currency: Armenian dram
3. Term: 3 years
4. Repayment type: annuity
5. Calculation rate: arithmetic average of the effective rate
6. Fees: included in the calculation
7. Extension: not applied (repayment strictly according to schedule)

The ranking is based on the monthly payment, as it best reflects the actual financial burden under a fixed scenario.

Comparison of Gold-backed Loans

Loans secured by gold are highly sensitive to collateral servicing terms. The calculations assume that the borrower:

1. repays the loan strictly according to schedule;
2. does not extend the loan term;
3. retrieves the collateral without delays.

In cases of extensions, penalties, or storage of collateral beyond the agreed term, the actual cost of the loan may be significantly higher than indicated in the table.

How to Choose a Loan in 2026

1. Define the purpose of the loan.
2. Evaluate the effective interest rate, not the advertised one.
3. Take into account fees and servicing costs.
4. Compare bank offers using identical scenarios.

Conclusion

In 2026, all major lending formats are available in Armenia. However, the actual cost of a loan is determined not by its type, but by the usage scenario: the amount, term, currency, fees, and the borrower’s behavior. Relying solely on the advertised rate almost always distorts the real picture.

Consumer loans remain a universal solution. For a loan of AMD 10,000,000 over 5 years, the monthly payment ranges from approximately AMD 242,000 to AMD 262,000. The lowest burden is created by products without fees and with a narrow effective rate range.

Credit cards are economically justified only for short-term expenses. When using a limit of AMD 5,000,000 beyond the grace period, the monthly burden amounts to approximately AMD 72,000–87,000. Premium cards are cost-effective only when their privileges are actively used.

Mortgages remain the cheapest type of loan in terms of interest rate, but the most sensitive to details. For a loan of AMD 23,100,000 over 30 years, monthly payments range from approximately AMD 281,000 to AMD 350,000. Even a 0.5–1 percentage point difference in the rate has a significant impact on the household budget.

Student loans should be compared not by monthly payments, but by the average effective interest rate—around 9–9.4%—since only interest is paid during the study period.

Loans secured by gold are suitable for urgent needs. For a loan of AMD 5,000,000 over 3 years, the monthly payment ranges from approximately AMD 181,000 to AMD 191,000 and is cost-effective only with strict adherence to the repayment schedule and without extensions.

Bottom line: there is no universally best loan. In 2026, making the right choice requires comparing offers under identical scenarios and focusing on the real financial burden rather than on promotional wording. You can select the optimal option for your situation on AFM.