Terms
tariffs
Borrower
RA resident legal entity, private entrepreneur
Loan purpose
Procurement (purchasing) of agricultural raw materials (fruits and vegetables, grapes, milk, and agricultural animals)
• Procurement (purchasing) of grapes for processing activities
• Procurement (purchasing) of fruits and vegetables for processing activities
• Procurement (purchasing) of milk for processing activities
• Procurement (purchasing) of fruits, vegetables, and grapes for cold storage and export activities
• Purchase of agricultural animals by slaughterhouses
• Purchase of chinchillas for fur export activities
Loan Type
Agricultural loan
Loan Currency
AMD
Loan Amount **
- Procurement (purchase) of grapes for processing activities: 1,000,000 - 4,000,000,000 AMD (each year)
- Procurement (purchase) of fruit and vegetables for processing activities: 1,000,000 - 3,000,000,000 AMD ***
- Procurement (purchase) of milk for processing activities: 1,000,000 - 1,000,000,000 AMD
- Procurement (purchase) of fruit and vegetable and grapes for cold storage and export activities: 1,000,000 - 3,000,000,000 AMD
- Purchase of agricultural animals by slaughterhouses:
- in the case of non-mobile slaughterhouses: 2,000,000 AMD – 50,000,000 AMD (based on the area of the slaughterhouse, not more than 2.0 million AMD per 15 square meters)
- in the case of mobile slaughterhouses: 1,000,000 - 5,000,000 AMD
- Purchase of chinchillas for chinchilla fur export activities: 1,000,000 - 50,000,000 AMD
Within the framework of loans provided for the specified purposes, at the choice of the borrower, a loan of the specified maximum amount may be provided for one of them, and the amounts of loans provided for other purposes shall not exceed 50% of the maximum amount of loans provided for the given purpose
Annual nominal interest rate of the loan
13.5%
- Loans in the amount of 1,000,000 - 10,000,000 AMD can be provided only with guarantee(s) acceptable to the Bank, at an annual interest rate of 17%
In case of financing with Program funds, the loan is provided at an annual interest rate set by the Bank operating within the framework of the Program
Annual effective interest rate ****
4.60-16.67%
In case of loans in the amount of 1,000,000 - 10,000,000 AMD provided only with acceptable guarantee(s) for the Bank: 8.31-8.33%
Annual nominal interest rate review conditions
In case of misuse of loan funds by the borrower, as well as in case of false or unreliable information, the Bank has the right to unilaterally increase the loan interest rate or demand full or partial early repayment of the loan.
Interest rate subsidy amount
9 percentage points *****
• Procurement (purchasing) of grapes for processing activities — 12–36 months
• Procurement (purchasing) of fruits and vegetables for processing activities — 12–18 months
• Procurement (purchasing) of milk for processing activities — 12–18 months
• Procurement (purchasing) of fruits, vegetables, and grapes for cold storage and export activities — 12–18 months
• Purchase of agricultural animals by slaughterhouses — 12–18 months
• Purchase of chinchillas for fur export activities — 12–18 months
Principal repayment grace period
· Procurement (purchase) of grapes for processing activities: 0-6 months
· Procurement (purchase) of fruits and vegetables for processing activities: 0-6 months
· Procurement (purchase) of milk for processing activities: 0-6 months
· Procurement (purchase) of fruits and vegetables and grapes for cold storage and export activities: 0-6 months
· Purchase of farm animals by slaughterhouses: 0-6 months
Purchase of chinchillas for chinchilla fur export activities: 0-6 months
Subsidy conditions ******
- The loan interest rate subsidy is terminated if:
there are overdue liabilities of the borrower to the Bank for the previous year (12 months) for more than 90 days or the loan is not classified as a standard class due to overdue liabilities to the Bank
the loan was used for other purposes*******
the loan was used in a manner inconsistent with the subsidy terms
the borrower does not provide the Bank with information on the volumes of finished products produced and sold, at current prices of the corresponding year, within the prescribed period of 10 business days following each quarter.
In cases of use of the loan for other purposes by the borrower and (or) use in a manner inconsistent with the subsidy terms, the subsidy amount provided up to that point is subject to refund.
Requirements to the borrower
- Credit history
The absence of classification and/or the total number of overdue liabilities during the last 12 months shall not exceed 30 days
Absence of current overdue liabilities
Age of the private entrepreneur Borrower: 18-65 years
Method of payment
Annuity (equal monthly payment of principal and interest)
Differentiated (equal monthly payment of principal and monthly payment of interest)
Individual payment schedule, depending on the specifics of the business
Payment method at the customer's choice
none
Cash-out fee
none
Penalty for overdue principal
0.1% daily
Penalty for overdue interest
0.13% daily
none
Collateral ********
1. Real estate and/or
2. Guarantee/s:
· In the case of customers who are legal entities, personal guarantees of the founders of the business and the beneficial owners,
· In the case of private entrepreneurs, if the beneficial owner is a third party, a guarantee of the beneficial owner.
3. Movable property: in the case when the real estate does not provide the necessary loan/collateral ratio, movable property may be the subject of additional collateral. Moreover, in the case of collateral of real estate and movable property, the share of movable property in the calculation of the total loan/collateral ratio may not exceed 20%.
Other collateral measures may also be requested by the decision of the Credit Committee.
In the case of collateral of a motor vehicle, the production period may not exceed:
for vehicles, manufactured in Russia - 5 years,
for vehicles, manufactured by other foreign countries – 10 years.
Loan/Collateral maximum value
According to Appendix 3
Insurance
Motor vehicles are subject to mandatory "Casco" (physical damage and theft) insurance in favor of the Bank, at least in the amount of the loan amount and subject to annual renewal of the insurance contract throughout the entire loan term.
The insurance is carried out by the customer.
Collateral valuation
The collateral is subject to valuation by an independent property valuation agency cooperating with the Bank and/or an employee of the Bank, depending on the amount of the loan.
The valuation by the Bank employee is carried out free of charge.
Requirements to guarantors
Individual (18-65 years old), who:
has no current overdue credit obligations;
the total number of overdue days in the last year shall not exceed 30 days.
at least one of the guarantors shall be the owner of real estate or have a registered salary.
Loan decision making period
Decision on the loan application within 5 working days after submitting the required documents.
Deadline for notification of decision
Within 1 working day after the decision is made.
Deadline for loan disbursement
Within 1 working day after submitting all the required documents and carrying out the state registration of the pledge right.
Maximum validity period of the decision
30 working days
In addition, the Bank has the right to refuse to provide a loan if any of the conditions considered essential for making a positive decision on providing a loan have changed.
* The loans provided for under this loan type are provided within the framework of the RA Government Decision No. 201-L dated February 19, 2019 “On approving the program for subsidizing interest rates on loans provided for the purpose of procurement (purchase) of agricultural raw materials” (hereinafter referred to as “the Program”). In the event of changes in the terms of the Program, the terms of the RA Government Decision in effect at that time shall apply.
** The amount of the loan provided shall not exceed the purchase price of raw materials specified in the contracts concluded between the borrower and agricultural enterprises and (or) legal entities engaged in milk collection, including cooperatives and (or) private entrepreneurs (hereinafter referred to as the seller), and in the case of calculation at the minimum purchase price of raw materials - 120 percent of the expected purchase price of raw materials. Moreover, the calculation of the amount of the loan provided shall not include the value specified in the purchase contracts for raw materials from the harvest of land plots, belonging to the borrower by the ownership or lease right, signed between the borrower and persons who are the founder of the borrower or shareholders with more than 10 percent of the shares or their family members (parent, spouse, child) or from the milk of agricultural animals or from agricultural animals or chinchillas or from wild fruits, berries and vegetables.
The amount of the loan provided in 2025 for the purpose of procurement (purchase) of grapes is calculated based on the contracts concluded before September 1, 2025.
The amount of the loan provided for the purpose of procurement (purchase) of fruits and vegetables for processing activities, as well as procurement (purchase) of fruits and vegetables and grapes for refrigerated storage and export activities is calculated based on the contracts for the purchase of agricultural raw materials concluded before October 1 of the given year.
*** Within the lending limit provided for procurement (purchase) of fruits and vegetables for processing activities, an additional loan may be provided for the purchase of glass jars, lids, aseptic bags and their containers necessary for canning of fruits and vegetables.
**** The calculation of the annual effective interest rate is based on the annual interest rate payable by the Borrower, excluding the part subject to interest rate subsidy.
***** The interest rate on loans provided to businesses operating in border settlements receiving social assistance and procuring and processing agricultural raw materials in the same areas, approved by the RA Government Decision No. 1444-N of December 18, 2014, is subsidized by 12 percentage points.
****** Contracts between the Customer and agricultural enterprises and/or legal entities and/or private entrepreneurs engaged in milk collection for the purpose of grape procurement (purchase) for processing activities, fruit and vegetable procurement (purchase) for processing activities, fruit and vegetable procurement (purchase) for refrigerated storage and export activities are concluded in accordance with the model contracts established by the RA Government Resolution No. 201-L of February 19, 2019 "On approving the program for subsidizing interest rates on loans provided for the purpose of procurement (purchase) of agricultural raw materials".
The contract concluded by the borrower with agricultural enterprises and (or) legal entities and (or) private entrepreneurs engaged in milk collection shall include the following provisions:
· the contract concluded by the borrower with agricultural enterprises and (or) legal entities and (or) private entrepreneurs engaged in milk collection shall include the following provisions:
· the size of the land plot (plots) owned by the agricultural enterprise or used on a lease basis, or the number of farm animals belonging to the enterprise, or the type and number of sold farm animals or chinchillas,
· the quantity of raw materials to be purchased, the terms and actual or minimum purchase price, by individual varieties or types,
· the procedure and terms for paying the cost of raw materials,
· the rights, obligations and liability of the parties,
· the effect of force majeure,
· the term of the contract and the grounds for termination,
· the bank account number provided by the seller. If the bank account number provided by the seller is not specified in the raw material purchase agreement, the borrower shall provide the Bank with the bank account number provided by the seller,
· the provision of an advance payment to the agricultural economy for the production of raw materials (if necessary).
******* Customers (except slaughterhouses) shall attach to the loan application submitted to the Bank copies of the agricultural raw material or chinchilla purchase agreements concluded with the sellers and the Information on the raw material purchase agreements concluded within the framework of the provided loan, filled out on their basis: Form N 1 (Appendix 1), inExcel format and in the version signed or sealed by the Customer, as well as the names and surnames of the Customer's founders or shareholders holding more than 10 percent of the shares or their family members (parent, spouse, child).
After the purchase process of agricultural animals, slaughterhouses shall submit to the Bank documents confirming the purchase of agricultural animals, copies of agricultural animal purchase contracts concluded with sellers, and Information on agricultural animal purchase contracts concluded within the framework of the provided loan: Form N 3 (Appendix 2) in Excel format and in a version signed or sealed by the Borrower.
******** In case of insufficient collateral level among economic operators for loans provided by slaughterhouses for the purpose of procurement (purchase) of agricultural animals, a budgetary guarantee of up to 70% of the loan is provided until December 30, 2026, in accordance with the procedure approved by the Government of the Republic of Armenia, and each beneficiary is provided with a budgetary guarantee once, in the amount of a maximum of AMD 14.0 million.
ATTENTION: IN THE EVENT OF NON-PERFORMANCE OR INCOMPLETE PERFORMANCE OF YOUR OBLIGATIONS, THE LENDER SHALL, AFTER 3 WORKING DAYS, SUBMIT SUCH DATA TO THE ACRA CREDIT BUREAU AND THE CENTRAL BANK (CB) CREDIT REGISTRY, WHERE YOUR CREDIT HISTORY IS FORMED.
YOU HAVE THE RIGHT TO OBTAIN YOUR CREDIT HISTORY FROM THE CREDIT BUREAU FREE OF CHARGE ONCE A YEAR.
ATTENTION: A POOR CREDIT HISTORY MAY HINDER YOU FROM OBTAINING LOANS IN THE FUTURE.
ATTENTION: LOAN INTEREST IS CALCULATED ON THE BASIS OF THE NOMINAL INTEREST RATE, WHILE THE ANNUAL ACTUAL INTEREST RATE SHOWS HOW MUCH THE LOAN WILL COST IF THE INTEREST AND OTHER PAYMENTS ARE MADE WITHIN THE SPECIFIED PERIOD AND AMOUNTS. THE PROCEDURE FOR CALCULATING THE ANNUAL ACTUAL INTEREST RATE IS POSTED ON THE BANK'S OFFICIAL WEBSITE
You can find detailed information about credit history and credit score here
You can find other loan-related terms and conditions at the following link.