Subsidized agricultural loans provided to the agri-food sector

18-65 years old resident of the Republic of Armenia, individual, legal entity, individual entrepreneur

Replenishment of fixed and working capital in the agri-food sector, increasing the production volumes of agricultural and processed products

Agricultural loan provided to the agri-food sector**

 Armenian drams

1 000 000-2 000 000 AMD***

13.15%

13.15%-13.95%
The loan is provided at an effective interest rate of up to 14% per annum. The loan interest rate subsidy will be implemented in such an amount that the annual interest rate of the loan payable by the beneficiary will be 0%

7-36 months

6 months

If the Bank has already conducted a visit to the Borrower's place of business within the last 12 months to analyze financial and economic indicators, then a visit to the Bank is not necessary, only a DSR (debt service ratio) calculation is performed by comparing new loan obligations with the income revealed during the previous analysis, which must be greater than or equal to 1.1 (including the newly provided loan).

• In case of deviation from the above condition, the loan is subject to provision based on a visit to the Borrower's place of business and analysis of financial and economic indicators by the Bank.
• Credit history: lack of classification and/or the sum of days of overdue obligations during the last 12 months must not exceed 30 days. In the event that the total amount of loans to the Borrower and its affiliated persons, secured only by guarantees, for SME (business and agricultural purposes) operating in the Bank (including the amounts of loans provided to the Borrower and its affiliated persons under this loan type) exceeds AMD 10,000,000, then the absence of classification for the Borrower and/or the total number of days of overdue liabilities must not exceed 15 days during the last 12 months is required.
• Absence of existing overdue liabilities.

The loan interest rate subsidy is terminated if:
• the requirements set out in the Program have not been met, the loan has not been used for its intended purpose (the use of the loan is considered non-targeted if the loan funds have not been used in the agro-food sector - agriculture and agro-processing),
• the borrower has provided obviously false information, and the fact of providing false information has been revealed after the loan provided for by this loan type has been provided,
• there are overdue liabilities of the borrower for a total of more than 90 days for one year (the previous 12 months) in relation to the loan provided for by this loan type, or as a result of overdue liabilities to the Bank, in accordance with the procedure of the Central Bank of the Republic of Armenia “Classification of loans and receivables of banks operating in the territory of the Republic of Armenia and formation of reserves for possible losses”, the loan is not classified in a standard class according to objective criteria,
• the loan agreement signed between the borrower and the Bank has been terminated early.

In cases of misuse of the loan by the borrower (including cases of early termination of the loan agreement at the borrower's initiative and failure to complete the work) or provision of false information, the subsidy amount provided up to that point is subject to refund.

• Annuity (equal monthly payment of principal and interest)
• Differentiated (equal monthly payment of principal and interest)
• Individual payment schedule depending on the specifics of the business

Payment method at the client's choice

Not defined

0.1% daily

0.13% daily

Not applicable

According to Appendix 1.

The decision regarding the loan application is made within 3 working days after the submission of the required documents.

Up to 1 working day after the decision is made.

Within up to 2 working days after submitting all required documents.

30 working days
However, the Bank reserves the right to refuse the granting of the loan if any of the conditions deemed essential for the positive decision to grant the loan have changed.