Terms
tariffs
Cattlebreeding development subsidy loans
Purchase (import) of pedigree cattle (bovine animals)
Loan Type
Agricultural loan
AMD
5.000.000 - 1.100.000.000 AMD
Annual Nominal Loan Interest Rate (Fixed)
14%*
Annual Effective Interest Rate
15.49-16.28%
According to the RA Law "On Consumer Crediting", the annual effective interest rate is calculated for loans up to 5 000 000 AMD (including 5 000 000 AMD)
Terms of review of annual nominal interest rate
In case of misuse of loan funds by the borrower, as well as in case of false or unreliable information, the Bank unilaterally increases the loan interest rate.
The Bank also has the right to demand full or partial early repayment of the loan.
Interest rate subsidy amount
14 percentage point
Loan term
24 - 60 months
Principal repayment grace period
0 - 18 months
The grace period applies only during the first year of the loan.
Subsidy conditions
The loan interest rate subsidy is terminated if:
1. there are overdue liabilities of the Borrower for the loan provided under this loan type for more than 60 days in total for the previous 12 months or the loan is not classified as a standard class due to overdue liabilities,
2. the acquisition (import) of the pedigree cattle was carried out 4 months after the loan was approved, and in case of an extension of this period by another 1 month with the consent of the Ministry of Economy of the Republic of Armenia - 5 months later,
3. the loan was used for non-purpose,
4. the acquired pedigree cattle was not used for the reproduction of the beef herd in the Republic of Armenia for at least 3 years,
5. the Borrower submitted false information,
6. the loan agreement between the Bank and the Borrower was terminated early.
In case of alienation of the pedigree cattle (identified by number and documents) acquired within the framework of this program, it is not subject to repeated lending within the framework of the Program.
In cases of misuse of the loan by the borrower**** and provision of false information, the subsidy amount provided up to that point is subject to refund.
Each beneficiary can use the Program only once*****. In the event that it is found out that before the loan was provided, the beneficiary had a loan received within the framework of the Program in another bank or credit organization, the loan continues to operate in the Bank at the maximum annual interest rate applicable at that time in accordance with the contractual term of the loan within the framework of the Bank's "Agrofast" agricultural loan type.
Requirements to the borrower
Credit history:
1. No delinquency and/or total number of days overdue for the last 12 months shall not exceed 30 days.
2. No current overdue liabilities.
Age of the borrower who is a private entrepreneur: 18-65 years
Method of payment
1. Annuity (equal monthly payment of principal and interest).
2. Differentiated (equal monthly payment of principal and interest).
3. Individual payment schedule, depending on the specifics of the business.
Repayment method at the customer's choice.
Not applicable
0.1% daily
0.13% daily
Not applicable
Collateral
Real estate and/or
Guarantee(s):
• For clients that are legal entities — personal guarantees from the founders of the business and ultimate beneficiaries;
• For individual entrepreneurs — if the ultimate beneficiary is a third party, a guarantee from the ultimate beneficiary is required.
Movable property: in cases where real estate does not ensure the required loan-to-collateral ratio, movable property may serve as additional collateral. In this case, when both real and movable property are pledged, the share of movable property in the overall loan-to-collateral ratio cannot exceed 20%.
By decision of the Credit Committee, other forms of collateral may also be required.
In case of pledging a motor vehicle, the manufacturing age must not exceed:
5 years for vehicles of Russian manufacture,
10 years for vehicles manufactured in other countries.
Loan/Pledge Maximum Value
According to Appendix 1.
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.
Valuation of Collateral
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 loan amount.
The valuation by the Bank employee is carried out free of charge.
Claims to Guarantors (if available)
An individual (18-65 years old):
1. who has no current overdue credit obligations;
2. whose 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 be provided with a registered salary.
Deadline for making a decision on
granting a loan
Decision on loan application within 7 business days after submission of required documents
Deadline for notification of
the decision
Up to 1 business day after decision
Deadline for granting a loan
Up to 1 business day after submission of all required documents and state registration of collateral
Maximum validity period of
the decision
30 working days
Moreover, the Bank has the right to refuse to provide a loan if any of the conditions considered essential for making a positive decision to provide a loan have changed.
* The loans provided for under this loan type are provided within the framework of the “Cattle Breeding Development Program in the Republic of Armenia for 2025-2029” (Appendix 5) approved by the RA Government’s Resolution No. 1392-L dated August 22, 2024 “On Approval of Cattle Breeding Promotion Programs in the Republic of Armenia”. In case of changes in the terms of the program, the terms of the RA Government’s Resolution currently in effect shall apply.
** Each borrower may annually acquire (import) a maximum of 1,000 heads of pedigree cattle (heifers (pregnant animals) and 14-17-month-old female calves (in the case of import, as of the first day of the start of quarantine in the exporting country, and in the Republic of Armenia, as of the date of signing the purchase and sale agreement)).
The estimated maximum cost of 1 head of pedigree cattle to be acquired is AMD 1,100,000.
The acquisition (import) can be carried out within 4 months after the loan is approved, and within the last ten days of its expiration, based on the Borrower's written application and with the consent of the Ministry of Economy of the Republic of Armenia, this period can be extended for another 1 month.
*** The total balance of loans provided within the framework of the program for one borrower cannot exceed 1,100,000,000 AMD.
**** After acquiring a pedigree livestock, the borrower submits the following documents to the Bank:
1. copy of the acquisition contract
2. pedigree cards of the acquired animals
3. receipts for payment for the animals, settlement document, other documents not considered settlement documents
4. copy of the contract with the transport company (if any)
5. veterinary certificate confirming the health status of the animals (in case of import, a copy of the accompanying veterinary documents)
6. certificate of registration of animals in the community.
***** Exceptions are cases when more than 50% of the animals owned by the beneficiary have died due to accidents (fire, lightning, electrocution), natural disasters (earthquake, flood) and attacks by predatory animals, not due to the beneficiary's fault, upon submission of documents confirming the listed cases.
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.