Unsecured Loans: Where and How to Get Loans in Armenian Banks

If you have ever considered taking out a loan but were discouraged by terms like "collateral" and "security," there's good news for you: today, almost all Armenian banks offer unsecured loans. In simple terms, you don’t need to pledge your apartment, car, or any other valuable asset—banks evaluate only your creditworthiness and credit history.

As a result, you can access the necessary funds without additional risks or cumbersome procedures. There are no lengthy collateral approvals, no extra costs for property valuation, and no paperwork hassles. Everything comes down to a standard document check and the bank's decision to grant the loan. This type of lending has long surpassed secured loans in popularity, attracting customers with its simplicity and speed.

What is an Unsecured Loan?

An unsecured loan is a standard loan that a bank issues without requiring you to pledge your apartment, car, or other valuable property as security. Unlike mortgage and auto loans, where the bank holds the collateral until the debt is fully repaid, here you simply receive the money and use it as you wish. When assessing your ability to repay the loan, the bank considers factors such as your credit history, income level, work experience, age, and other financial indicators.

The Benefits of an Unsecured Loan

When applying for a consumer loan, you don’t have to gather additional documents to confirm property ownership, insure assets, or pay for an appraiser’s services. This significantly reduces the time and costs involved, eliminating unnecessary bureaucracy and risks associated with collateral loss.

Which Banks Offer Unsecured Loans?

All of them. Every bank in Armenia issues unsecured loans. These are generally classified as consumer loans.

Below is a comparison table of three of the most attractive unsecured loans based on a combination of low-interest rates and high loan amounts:

Key Bank Offers

1. ArmSwissBank offers the highest maximum loan amount—up to 50,000,000 AMD.
2. Converse Bank and Acba Bank have the lowest minimum loan amounts starting at 50,000 AMD.
3. Most banks offer standard loan amounts ranging from 1,000,000 to 10,000,000 AMD.
4. Ardshinbank provides the longest repayment terms—up to 120 months (10 years), making it the most flexible option for long-term loans.
5. For short-term loans, the minimum repayment period starts from 1 month (Mellat Bank, ArmSwissBank, ID Bank).

You can find more details about the best consumer loans and banks on our website.

Are There Any Advantages to Secured Loans?

Yes. The main advantage of secured loans is their lower interest rates. Generally, banks offer higher loan amounts at lower rates when collateral is involved. This type of loan is beneficial if you need a large sum of money—justifying the extra time spent on securing it.

How Else Can You Get a Loan Without Collateral?

If you need access to funds but don’t want to take out a consumer loan, consider getting a credit card. It allows you to use the bank’s money while avoiding interest payments if you repay within the grace period. This is especially convenient for regular expenses and small purchases when you need quick financial coverage without extra fees.

On AFM.am, you can find a selection of the best credit cards in Armenia, compare their conditions, and choose the most suitable option.

Conclusion

Unsecured loans are often associated with smaller amounts, but ArmSwissBank offers up to 50 million AMD without requiring collateral. This is an excellent option for those who need a large sum without the risk of losing property.

How to choose the best loan?

When selecting a loan, consider not only the maximum loan amount but also the interest rate, fees, and repayment terms. If your priority is a low rate, a secured loan may be the better choice. However, if you value fast processing and minimal risks, a consumer loan without collateral is the optimal solution.

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