Where to Get a Cash Loan in Armenia?

A cash loan is one of the most popular ways to obtain borrowed funds from a bank. Despite its name, the money is not given directly in cash; instead, the approved amount is credited to a special account in the borrower's name. The client can then decide how to use the funds—withdraw them from a bank branch, transfer them to a card, or spend them in portions. Banks regulate these transactions through fees and commissions, which are crucial factors to consider when choosing the right loan offer.

Additionally, cash loan applications require processing time for approval. In this article, we will review which banks in Armenia offer such loans, their terms, and what you need to qualify.

Who Needs Cash Loans?

Quick cash loans can be helpful for those who:

1. Plan major purchases such as home appliances, furniture, or renovations.
2. Need to pay for education or courses.
3. Are experiencing temporary financial difficulties and require funds for unexpected expenses, including medical bills.
4. Want to finance a trip or vacation.

What Types Do Consumer Loans Have?

Consumer loans in Armenia are divided into several categories:

1. Cash loans – Disbursed at a bank branch or transferred to a bank account. They can be processed both in-branch and online.
2. Online loans – Essentially the same as cash loans but issued without visiting a bank, usually with minimal document requirements. The funds are credited to a card or bank account.
3. Loans without income statements – Designed for borrowers who cannot or do not want to provide official income proof. These loans typically have higher interest rates due to the increased risk for the bank.

How to Find the Best Bank for a Cash Loan?

Choosing a bank for a cash loan in Armenia depends not only on the interest rate but also on cash withdrawal terms, if needed. Typically, banks allow clients to withdraw cash through ATMs or at bank branches. However, it is important to note that some banks charge withdrawal fees. Certain banks offer loans but impose restrictions on cash withdrawals or charge additional fees.

For example:

1. Mellat Bank does not issue plastic cards, so cash withdrawals are only possible at a branch and are subject to a fee.
2. ID Bank offers the Rocket Line loan, but it can only be used for non-cash transactions.
3. Inecobank and Ameriabank allow cash withdrawals but may charge fees, such as 0.35% of the amount or a fixed monthly service fee.

To select the best loan offer, it is essential to check not only the interest rate but also withdrawal fees and the availability of funds through ATMs and branches.

Are There Any Loan Disbursement Fees?

One often-overlooked factor is the loan disbursement fee, which varies by bank and loan terms. While most banks in Armenia do not charge additional fees for disbursing loan funds, there are exceptions:

1. Ameriabank charges 1% of the loan amount, capped at 10,000 AMD for Armenian citizens and 20,000 AMD for foreign citizens. However, online loans are exempt from this fee.
2. Acba Bank charges 3% of the loan amount.
3. Other banks in the list do not specify a disbursement fee, which generally indicates it is not applicable. However, it is advisable to verify this information with the bank as policies may change.

Are There Any Additional Fees for Cash Loans?

Besides interest rates and disbursement or withdrawal fees, some banks charge additional commissions that can impact the total cost of the loan:

1. Mellat Bank (Privilege Loan) – 0.35% of the loan amount for cash withdrawals.
2. Mellat Bank (Express Consumer Loan) – 0.35% withdrawal fee + 0.2% monthly service fee.
3. Evocabank (Action Loan) – 2,000 AMD for Armenian citizens, 10,000 AMD for foreign citizens (account opening fee).
4. AMIO Bank (Consumer Loan Based on Scoring) – 1,500 AMD account opening fee.
5. Artsakhbank (Unsecured Express Loan) – 1,000 AMD account opening fee.
6. VTB Bank (Armenia) (Unsecured Loan) – 0.8% monthly fee (max 9,000 AMD) + 1.6% of the loan amount (max 80,000 AMD).

These fees can significantly impact the final cost of the loan, so reviewing the loan agreement carefully and confirming terms with the bank is recommended before proceeding.

Let’s Compare DIfferent Loan Programs!

On our website, you can explore the best consumer loan offers in Armenia for 2025, compare conditions, and choose the most favorable option. Below is a summary table with key details:

The lowest cash withdrawal fees are offered by Evocabank (0% for cash deposits) and Artsakhbank (0.25%).

Unibank has the highest withdrawal fee—5% of the loan amount, making it a less favorable option for cash loans.

VTB Bank (Armenia) also charges significant fees for both withdrawal and loan issuance.

Mellat Bank and AMIO Bank offer moderate withdrawal fees, making them average options in terms of overall cost.

If minimizing fees for loan issuance and cash withdrawals is a priority, Evocabank and Artsakhbank appear to be the most advantageous choices.

Conclusion

Many banks in Armenia offer cash loans, but the terms vary based on your financial and residential status. Payroll clients often receive better loan offers. Loans for non-residents and pensioners are not available in all banks and typically come with higher costs.

1. If you are a foreign citizen, consider ID Bank, Evocabank, Ameriabank, VTB Bank, or Converse Bank.
2. If you are a pensioner, you can apply for loans at IDBank, Ardshinbank, Unibank, Acba Bank, or Converse Bank.
3. Converse Bank is the only bank that offers loans to both non-residents and pensioners.

On average, cash loans in Armenia can be processed within 1 to 5 days after applying, depending on the bank and the completeness of the submitted documents. The fastest loans are approved within 24 hours, while some banks require additional time to assess the borrower's creditworthiness.

When applying for a loan, it is crucial to consider not only the interest rate but also withdrawal and service fees. Compare terms, read the contract carefully, and make informed decisions.

Financial literacy is your most valuable asset! On AFM, you can find detailed reviews, comparisons, and expert advice on choosing the best financial products in Armenia.