Cattlebreeding development subsidy loans

RA resident legal entity, private entrepreneur

Acquisition (import) of pedigree cattle **

Agricultural loan

AMD 

5.000.000 - 1.100.000.000 AMD

14%

In case of financing from program resources, the loan is provided at the annual interest rate set by the Bank under the given program, but not more than 14%

15.41-16.31%

Pursuant to the RA Law "On Consumer Crediting", the annual effective interest rate has been calculated for a loan of AMD 5,000,000

In case of misuse of loan funds by the Borrower, as well as where false or inaccurate information is revealed, the Bank unilaterally increases the loan interest rate.

The Bank also has the right to demand full or partial early repayment of the loan.

14 percentage point

24 - 60 months

0 - 18 months

The grace period applies only during the first year of the loan

The loan interest rate subsidy is terminated if:

1. the Borrower has overdue liabilities on the loan provided under this loan product totaling more than 60 days over the preceding 12 months, or, as a result of overdue liabilities, the loan is not classified as "Standard",

2. the acquisition (import) of pedigree cattle was carried out later than 4 months after the loan approval, or, where this period has been extended by 1 more month with the consent of the RA Ministry of Economy, later than 5 months,

3. the loan has been misused,

4. the acquired pedigree cattle have not been used for the reproduction of the cattle herd in the RA for at least 3 years,

5. the Borrower has submitted false information,

6. the loan agreement concluded between the Bank and the Borrower has been terminated early.

Pedigree cattle acquired under this program (identified by tag number and documents) are not eligible for repeated financing under the Program in case of their alienation.

In case of misuse of the loan by the Borrower**** or provision of false information, the subsidy amount provided up to that moment shall be refunded.

Each beneficiary may use the Program only once *****. If it is found that, prior to the loan disbursement, the beneficiary had a loan received under the Program at another bank or credit organization, the loan shall continue to be serviced at the Bank at the maximum annual interest rate effective at that time under the Bank's "Agrofast" agricultural loan product corresponding to the contractual loan term.

Credit history:

1)   No classification and/or the total number of overdue days over the last 12 months must not exceed 30 days.

2)  No current overdue liabilities. 

Age of a Borrower who is a private entrepreneur: 18-65 years.

If all participants/founders/shareholders of a Borrower that is a legal entity are over 65 years of age, at least 1 guarantor aged 18-65 is mandatory.

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

1. Real estate and/or

2. 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.

3. 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%.

Other types of collateral may also be accepted by decision of the Credit Committee.

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.

According to Appendix 1.

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.

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.

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.

Decision on loan application within 7 business days after submission of required documents

Up to 1 business day after decision

Up to 1 business day after submission of all required documents and state registration of collateral

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.