Terms
tariffs
Type
IFAD Danida Horticultural Loans
Loan Purpose
Establishment of new orchards and technological modernization of existing orchards*
Loan Currency
AMD
Borrower
18-65 years old resident of the Republic of Armenia, private entrepreneur and legal entity
Target clients: Business entities submitting a sub-project to establish 0.3 - 3 ha of grape, apple, apricot, peach, pear, plum and prune, walnut orchards in the target regions or to technologically modernize the existing orchard/s.
Loan Term
24-120 months
Maximum loan terms provided within the framework of the horticultural program
• In the case where working capital constitutes up to 20% of the loan amount, the maximum loan term may be: the full harvest period of the specific fruit variety + 3 years.
• In the case where working capital constitutes more than 20% of the loan amount, the maximum loan term may be the full harvest period of the specific fruit variety + 1 year:
Grace Period for Principal Payment
0-84 months
Grace period for repayment of the principal amount of loans:
• In case of establishment of new plantations, the grace period of the loan will be: until the garden reaches full yield plus the best price consumption period.
• In case of technological modernization of existing fruit orchards, the period until the harvest plus the best price consumption period, maximum 12 months.
• In case of technological modernization of existing newly planted orchards, the period until the garden reaches full yield plus the best price consumption period:
Loan Amount
1.000.000 – 70.000.000 AMD**
Annual nominal loan interest rate /fixed/
10%
Annual effective loan interest rate
10.48-11.8%
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 subject to renewal of the insurance contract every year 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,
1) Repayment method according to the customer's choice.
1. Eligible investments/expenses for financing under the Horticultural Loan Product
1.1. Fixed assets
1) Grape, apple, apricot, peach, plum, walnut and pear seedlings,
2) Irrigation systems,
3) Protection against hail, frost, frostbite and birds,
4) Equipment and mechanisms necessary for planting, caring for and cultivating a garden, including garden plows (only for vineyards),
5) Garden ploughs (only for vineyards),
6) Tractors of medium and small power,
7) Tractor attachments (sowing and loosening plows, furrow cutting tools, horticultural tillers, garden cultivators, horticultural chisels, roller or cross-bar levelers, self-propelled or trailed sprayers, planters (only for orchard planting, fertilizer spreaders)
8) Backpack sprayers,
9) Garden cultivators, harrows and inter-plant tillers, etc.,
10) Trailers (carriages) and trunks (bunkers),
11) Other means, for example, equipment, tools intended for storage, preservation, transportation).
1.2. Working capital
1) Agricultural works,
2) Vaccines, mineral and organic fertilizers,
3) Pesticides and other agrochemicals,
4) Irrigation costs,
5) Other expenses.
** The total amount of outstanding loans to the same borrower (including related parties) cannot exceed 70 million 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.