How to Get a Loan Without Income Proof in Armenia?

When issuing a loan, banks aim to minimize risks and ensure that the borrower can repay the money. This is why, in most cases, income verification and proof of stable employment are required. These documents help banks assess a client's financial capacity before making a loan decision. However, not everyone can provide such documents. Does this mean obtaining a loan is impossible? Not always. In Armenia, there are ways to secure a loan even without an income certificate. This is especially useful for freelancers, entrepreneurs, or individuals who cannot or do not want to document their income.

Let’s explore the main ways to obtain a loan without income verification.

1. Be a Payroll Client of a Bank

One of the easiest ways to get a loan without an income certificate is to be a payroll client of the bank. If you receive your salary into an account at a specific bank, the bank can already see your regular deposits, reducing the need for additional documentation.

How to Do It:

1. Check the loan conditions at your payroll bank.
2. Ensure you have received your salary in the account for at least six months.
3. Apply for a loan through AFM or your bank’s mobile application.

Banks Offering Loans for Payroll Clients:

Among many Armenian banks offering discounts on loans for payroll clients, the following provide loans with the lowest annual interest rates:

Pros: Simplified application process, reduced interest rates.

Cons: Available only to those who receive their salary through the bank.

2. Take a Collateral-Based Loan

If you own valuable assets, such as gold or real estate, you can obtain a loan without income verification by using them as collateral. Banks are less strict about income proof if the loan is secured by assets.

How to Do It:

1. Contact a bank with your collateral.
2. Undergo asset evaluation (e.g., gold is valued at current market rates).
3. Sign the contract and receive the funds.

Banks Offering Gold-Backed Loans (As of March 1, 2025)

Pros: High approval chances, large loan amounts.

Cons: Risk of losing the collateral if the debt is not repaid.

3. Make a Large Down Payment or Request a Lower Loan Amount

For targeted loans such as mortgages or car loans, increasing the down payment significantly boosts approval chances even without income proof. Banks are more flexible with borrowers who can cover a substantial portion of the purchase cost themselves.

For example, Unibank offers mortgages without an income certificate if the down payment is at least 40% (compared to 10% for standard income-verified applications). The interest rate in this case is slightly higher (14.5% vs. ~13.8%), and the loan term is capped at 15 years.

Alternatively, requesting a smaller loan amount can also increase approval chances. Microfinance institutions often lend small sums without strict documentation requirements. FINCA Armenia offers consumer loans up to 500,000 AMD without requiring official income proof or a guarantor.

Banks Offering Mortgages and Auto Loans Without Income Verification

4. Provide Alternative Proof of Financial Stability

If you lack an official salary certificate (e.g., your income is informal), banks may accept alternative proof of income, such as:

1. Bank statements showing regular deposits
2. Tax returns (for self-employed individuals or business owners)
3. Rental income agreements (if you earn money from property rentals)

While these documents are not always required, they strengthen your loan application. Some banks analyze a client’s financial activity based on bank transactions, utility bill payments, and other indirect indicators of financial stability.

For example, Ardshinbank considers a borrower's credit history or asset ownership when issuing collateral-based loans without income proof.

5. Use Guarantors or Co-Borrowers

Another alternative is to involve a guarantor or co-borrower with a verifiable income. A bank may approve a loan for the primary borrower without an income certificate if a reliable guarantor guarantees repayment.

For instance, Evocabank requires a guarantor when issuing a collateral-backed loan if the borrower lacks income proof. A guarantor is usually a close relative or business partner with stable earnings or assets.

For mortgage loans, it is common to add a co-borrower (e.g., a spouse) whose official income is considered instead of or alongside the main borrower's income. This strategy increases approval chances by adding financial credibility to the application.

Conclusion

Obtaining a loan in Armenia without an income certificate is possible—especially with the right strategy. Collateral, a strong credit history, a reliable guarantor, or a substantial down payment all enhance approval chances. Many banks have already developed special loan products for such cases, and the market is becoming more flexible for clients with informal income sources.

Key Takeaways:

1. You can get a loan at the bank where you have a payroll account.
2. You can secure a collateral-backed loan.
3. A higher down payment increases approval chances.
4. Providing alternative proof of financial stability strengthens your application.
5. A guarantor or co-borrower can help you secure approval.

Banks do not automatically reject applicants who lack formal income proof but may require additional guarantees.

Understanding which banks are open to such applications and knowing what alternative guarantees you can provide is key. Lowering the bank's risk increases your chances of getting approved.

Looking for the best loan option? Explore and compare bank offers to find the most suitable option on AFM!