Terms
tariffs
Loan type
Agricultural loan*
Loan purpose
Development of intensive horticulture in Armenia, introduction of modern technologies and production of non-traditional crops **
Borrower
RA resident natural person aged 18
RA resident natural person, RA resident legal entity, private enterpreneur
Loan currency
Armenian dram, US dollar, Euro
Loan term
24-96 months ***
Grace period for loan principal payment
0-60 months ***
Minimum loan amount
Minimum: 12,000,000 AMD
Minimum: 30,000 US dollars
Minimum: 30,000 Euro
Maximum loan amount
The maximum permissible risk limit per borrower as defined by the Bank's internal legal acts.
Loan nominal annual interest rate /fixed/
13%
10%
9%
Effective annual interest rate
13.77 - 14.33%
10.45 – 10.98%
9.36 - 9.88%
Subsidy amount ****
- for gardening: 7 percentage points
- for the installation of a hail protection network without planting an orchard: 9 percentage points
- 12 percentage points for the cultivation of non-traditional high-value crops, including legumes, the introduction of modern irrigation systems without establishing orchards, or the construction of water reservoirs
- for gardening: 3 percentage points
- for the installation of a hail protection network without planting an orchard: 5 percentage points
- 7 percentage points for the cultivation of non-traditional high-value crops, including legumes, the introduction of modern irrigation systems without establishing orchards, or the construction of water reservoirs
- for gardening: 3 percentage points
- for the installation of a hail protection network without planting an orchard: 5 percentage points
- 7 percentage points for the cultivation of non-traditional high-value crops, including legumes, the introduction of modern irrigation systems without establishing orchards, or the construction of water reservoirs
Requirements towards the borrower
Credit history:
The total number of days of non-classification and/or overdue liabilities during the last 12 months shall not exceed 30 days.
Absence of current overdue liabilities.
Repayment Method
- Annuity (equal monthly payment of principal and interest)
- Differentiated/ Equal monthly payment of principal and monthly payment of interest/
- Individual payment schedule
Payment method per the customer's choice
Subsidy terms
- Interest rate subsidy may be terminated:
- if the requirements set out in the Program were not met, the loan was not used for its intended purpose, or a violation of the terms of this Program was detected as a result of monitoring,
- if the beneficiary has provided obviously false information,
- if there are overdue liabilities of the borrower for a given loan for a period of one year (the previous 12 months) exceeding sixty days in total or the loan is not classified in a standard class according to objective criteria due to overdue liabilities to the Bank,
- In case of early termination of the contract between the Borrower and the Bank.
- In cases of misuse of the loan by the borrower (including cases of early termination of the loan agreement at the borrower's initiative and failure to complete the work provided for in the program, regardless of the work performed in separate stages) and provision of obviously false information, as well as violation of the terms and requirements set forth in the Program or detection of violations of the Program terms as a result of Monitoring, the subsidy amount provided up to that point is subject to refund.
- In case of misuse of the loan by the Borrower, violation of the terms/terms set forth in the Loan Agreement by the Borrower, or the submission of obviously false information, the Bank unilaterally changes the loan interest rate by applying the maximum annual interest rate applicable to the contractual term of the loan within the framework of the Bank's "Agrofast" agricultural loan, or suspends the provision of the loan amount in successive installments, or requires full early repayment of the loan.
Loan disbursement and service fee
Not defined
Penalty for overdue principal amount
0.1% daily
Late payment interest penalty
0.13% daily
Loan prepayment penalty *****
Not defined
Security measure
Real estate and/or vehicle***,
Other security measures may be provided by decision of the Credit Committee.
*** A motor vehicle whose production date at the time of pledge shall not be older than:
- for cars of Russian production: 5 years,
- For cars manufactured in other countries: 10 years.
! The car 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 during the entire term of the loan. The insurance is carried out at the expense of the Borrower throughout the term of the loan.:
Insurance is provided by the customer.
Loan/Pledge maximum value
According to Appendix 1.
In the event the real estate does not provide the necessary loan/collateral ratio, then in the case of pledging a vehicle accepted as collateral, the share of the vehicle in the calculation of the total loan/collateral ratio shall not exceed 20%.
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 assessment by a bank employee is carried out free of charge.
Claims against guarantors (if any)
a natural person aged (18-65) who:
Does not have overdue credit obligations,
The total number of days of overdue liabilities during the last year shall not exceed 30 days,
At least one of the guarantors must be a real estate owner or have a registered salary.
Maximum validity period of the decision
30 business 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.
Decision on Loan disbursement deadline
Decision on loan application within 5 business days after submitting the required documents
Deadline for the notification of the decision
Up to 1 business day after the decision is made
Loan disbursement deadline
Up to 1 business day after submitting all the required documents and completing state registration of the pledge right
* The loans provided for under this loan type are provided within the framework of the "State Support for the Development of Intensive Horticulture, the Introduction of Modern Technologies and the Promotion of the Production of Non-Traditional High-Value Crops in the Republic of Armenia for 2021-2026"program (hereinafter referred to as the «Program»), approved by the RA Government Resolution No. 927-L of June 3, 2021. In the event of a change in the terms of the program, the terms and conditions of the Resolution of the Government of the Republic of Armenia at the time of the change shall apply.
** The borrower is obliged to complete the planned work within the following time frames from the moment the loan agreement enters into force (unless other terms and conditions are specified in the loan agreement):
- Gardening: 2 years (in spring, planting must be completed by June 1, and in autumn, by December 1)
- Cultivation of non-traditional crops, including legumes: 1 year (in the case of asparagus, completion of the main work: 2 years)
- Introduction of modern irrigation systems and/or construction of a water basin and/or introduction of a hail protection net in perennial plantings - 2 years.
- The borrower shall:
· not to alienate and use the c (real estate) for its intended purpose for at least 5 years after the completion of the park establishment works and not to burden it with other rights without the consent of the Ministry
· ensure the operation of modern irrigation systems or a water basin on the invested land for 4 years after the investment and not to alienate the invested land, and after the completion of the work on the installation of hail protection networks in perennial plantations, not to alienate the land of the installed hail protection network or the hail protection system for at least 5 years, not to burden it with other rights without the consent of the Ministry and ensure the operation of the hail protection system on the invested land for 5 years after the investment
· After the establishment of the orchard, ensure at least 75% seedling adhesion in the orchards during the term of the contract.
*** a) In case of establishing an orchard: 96 months, grace period for the repayment of the principal amount: 60 months,
b) In case of installing no hail protection systems: 84 months, grace period for the principal repayment: up to 36 months,
c) without installing modern irrigation systems (drip or sprinkler), as well as in the case of the construction or expansion of water basins - 48 months, the grace period for repayment of the principal amount - up to 12 months,
**** Interest rate subsidies are provided to entrepreneurs of border communities receiving social assistance, agricultural cooperatives, and citizens who have become disabled as a result of combat duty or operations during military service, included in the list approved by the Resolution No. 1444-N of December 18, 2014 of the Government of the Republic of Armenia:
- for gardening:
· In the case of loans in AMD, by 10 percentage points
· For loans in US dollars and euros, by 6 percentage points:
ü for the installation of a hail protection network without garden foundation:
· In the case of loans in AMD, by 13 percentage points
· For loans in US dollars and euros, by 8 percentage points.
ü for the cultivation of non-traditional high-value crops, including legumes, for the introduction of modern irrigation systems without gardening, or for the construction or expansion of water basins :
· In the case of loans in AMD, by 13 percentage points
· For loans in US dollars and euros, by 8 percentage points:
- for young people engaged in agriculture - individuals and individual entrepreneurs aged 18 to 35, individuals and individual entrepreneurs aged 63 and over, and commercial legal entities that have one founder (participant) aged 18 to 35 or over 63, shareholder, who is also the director of the said commercial legal entity (at the time the loan agreement enters into force), interest rate subsidies are implemented:
for gardening:
· In the case of loans in AMD, by 8 percentage points
· For loans in US dollars and euros, by 4 percentage points:
for the installation of a hail protection network without orchard foundation:
· In the case of loans in AMD, by 10 percentage points
· For loans in US dollars and euros, by 6 percentage points:
for the cultivation of non-traditional high-value crops, including legumes, for the introduction of modern irrigation systems without gardening, or for the construction or expansion of water basins :
· In the case of loans in AMD, by 13 percentage points
· For loans in US dollars and euros, by 7 percentage points:
Moreover, the commercial legal entity must not change the founder (participant) or shareholder of the legal entity during the term of the loan agreement, as well as the founder (participant) of the latter, the shareholder must not alienate the share (shares) or part thereof during the term of the loan agreement.
The subsidy percentage point cannot be higher than the interest rate of the loan provided.
***** Full early repayment of the loan principal may be carried out after a positive conclusion of the monitoring carried out by the financial institution and the Ministry in according to the established procedure.
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.