Terms
tariffs
Type
IFAD Agricultural Development Loans
Loan Purpose
Agricultural activities, replenishment of fixed and working capital, capital investments*
Loan Currency
AMD, USD
Borrower
18-65 years old resident individual of the Republic of Armenia, resident legal entity of the Republic of Armenia, private entrepreneur
Loan term
24-84 months
If the refinancing of working capital in the sub-loan expense items exceeds 20%, the maximum term of the sub-loan is set at 24 months.
Grace Period for Principal Payment
0-18 months
Loan amount
1 000 000 – 70 000 000 AMD**
13 000 – 150 000 USD**
Annual nominal loan interest rate /fixed/
11.5%
9.75%
Annual effective loan interest rate
12.13-13.50%
10.23-11.47%
Loan provision and service fee
Not defined
Penalty for overdue principal
0.1% daily
Penalty for overdue interest
0.13% daily
Penalty for early repayment of loan
Not defined
Collateral/Pledged asset
1 000 000-3 000 000 AMD
• At least 1 individual (18 65 years old) who has no current overdue liabilities.
• The guarantor must be a real estate owner or a registered employee.
• The total number of days of overdue liabilities of the guarantor in the last one year must not exceed 30 days.
3 000 001-5 000 000 AMD
• Guarantees from at least 2 individuals (18-65 years old) or private entrepreneurs that do not have current overdue liabilities.
• At least one of the guarantors must be a real estate owner or a registered employee.
• The total number of days of overdue liabilities of each guarantor in the last year must not exceed 30 days.
• Other security measures may be provided by the decision of the Credit Committee.
• Real estate (building) and/or vehicle*** (The mortgage agreement is notarized),
• Other collateral may be provided by the decision of the Credit Committee.
***A vehicle, the year of manufacture of which at the time of pledge shall not be older than:
• for vehicles of Russian production - 5 years,
• for vehicles of foreign production - 10 years.
The vehicle is subject to mandatory "CASCO" (physical damage and theft) insurance in favor of the Bank, at least in the amount of the Loan amount and for the entire duration of the Loan.
Loan/Collateral Maximum Value
According to Appendix 1
Collateral Valuation
The collateral is subject to valuation by an independent property valuation agency cooperating with the Bank and/or by a Bank employee, depending on the loan amount.
The valuation by a Bank employee is carried out free of charge.
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,
• Repayment method according to the customer's choice.
1.Investments eligible for financing include:
1.1. Purchase and breeding of agricultural animals
1.2. Purchase of planting material or seeds of agricultural plants,
1.3. Purchase of agricultural land,
1.4. Purchase of land for the operational purpose of agricultural production facilities and storage facilities,
1.5. Purchase of agricultural gardens,
1.6. Production of products obtained for final or intermediate consumption through biological transformation of animals or plants (agricultural products),
1.7. Processing of agricultural products or construction, renovation of processing capacities,
1.8. Marketing and logistics of agricultural products, construction/creation of marketing infrastructure,
1.9. Purchase of trucks, semi-trailers and trailers for the purpose of selling, transporting or exporting agricultural animals, agricultural products,
1.10. Purchase of agricultural machinery and agricultural tools, their lease,
1.11. Creation of machine-tractor fleets and their operation,
1.12. Construction, purchase or repair of drip irrigation systems, other irrigation systems or their components and accessories,
1.13. Purchase of means of protection against hail, frost, frostbite and birds,
1.14. Construction, repair or provision of services through the operation of refrigerated and other warehouses for agricultural products, other refrigeration farms,
1.15. Construction and operation of places for organizing trade and commerce in agricultural products,
1.16. Purchase of fertilizers, pesticides, medicinal products and other agrochemical control products and materials, except for materials and measures prohibited by the legislation of the Republic of Armenia,
1.17. Purchase of feed, feed additives and other materials,
1.18. Financing of other agricultural activities,
1.19. Non-rural activities in target regions.
2. Ineligible investments within the framework of sub-projects include, but are not limited to, the following purposes and sectors:
2.1. Construction or renovation of housing,
2.2. Refinancing of debt in another financial institution,
2.3. Production, processing and trade of tobacco and tobacco products,
2.4. Wholesale trade activities, except for agricultural products,
2.5. Provision of consumer loans,
2.6. Trade in metals,
2.7. Trade in petroleum products,
2.8. Purchase and sale of pesticides, if they are not acceptable from the point of view of environmental protection of the Republic of Armenia.
3. Notice
** The total outstanding balance of loans to the same borrower (including related parties) may not exceed AMD 70 million or USD 150,000.
3.1. Services and payments provided by third parties:
1) In the case of mortgage of real estate, including land:
a. Certificate of restrictions on real estate: 10,000 AMD,
b. State registration fee for pledge: 26,000 AMD,
c. Notary fee: 16,000-20,000 AMD.
d. Property valuation fee: 15,000-25,000 AMD.
2) In case of vehicle pledge:
a. Certificate of vehicle restrictions: 3,000-4,000 AMD,
b. State registration fee for collateral: 2,000-3,000 AMD,
c. Collateral insurance: 2.5% of the loan amount,
d. Notary fee: 11,000-12,000 AMD,
e. Property valuation fee: from 5,000-20,000 AMD.
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.