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Terms
tariffs
Micro
Medium
Borrower
RA resident legal entity, private entrepreneur**, individual
Agricultural (for capital, current and mixed investments) *
AMD
Loan amount**
300,000-10,000,000 AMD
2,000,000-160,000,000 AMD
! The amount of the loan provided for a start-up business cannot exceed 5 million AMD.
(A business is considered a start-up when the potential borrower has not had any other operating business (neither in agriculture nor in other sectors) during the previous 6 (six) months.
In case of mixed investment financing, the share of loan funds provided for the acquisition of working capital may not exceed 30% of the loan amount and may be used solely to replenish the working capital required for implementing the investment project (costs of acquiring other working capital may not be financed)
Annual nominal interest rate (fixed)**
12%
Up to 60 months: 12%
From the 61st month: the annual interest rate effective at that time at the Bank for loans provided from the Bank's own resources under the "Agrofast" agricultural loan product corresponding to the contractual loan term
Annual effective interest rate
12.68 - 12.69%
13․15 - 19․25%
Pursuant to the RA Law "On Consumer Crediting", the annual effective interest rate has been calculated for loans of up to AMD 5,000,000 (inclusive)
Conditions for changing the annual nominal interest rate
In case of misuse of loan funds by the Borrower (use for purposes other than intended), the Bank has the right to unilaterally increase the loan interest rate or demand full or partial early repayment of the loan.
If the loan is not qualified by the GAF or the qualification of the provided loan is terminated, the loan shall be deemed provided from the Bank's own resources, after which the loan shall continue to be serviced at the annual interest rate effective at that time at the Bank for loans provided from the Bank's own resources under the "Agrofast" agricultural loan product corresponding to the contractual loan term
Minimum term: 24 months
Maximum term: 60 months
Minimum term: 24 months
Maximum term: The maximum term currently in effect within the framework of the loan type "Agrofast" agricultural loan with the Bank's own resources
3-18 months throughout the entire loan term
The grace period may be distributed over the entire loan repayment period, depending on the Borrower's cash flows
Other conditions
1․ The following are not eligible for financing:
acquisition or renovation of residential real estate,
acquisition of land plots subject to alienation for state needs by the RA Government,
repayment of other credit obligations of the Borrower.
2․ Loans are provided based on positive results of the financial analysis of business activities (in agriculture and/or other sectors) for at least the preceding 6 months.
3․ Loans to start-up businesses may be provided based on an analysis of future cash flows and/or other regular income (e.g. monthly salary).
Borrower requirements
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 an private entrepreneur or an individual: 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.
Annuity (equal monthly payments of principal and interest)
Differentiated (equal monthly principal payments plus monthly interest payments)
Individual payment schedule
Repayment method: at the customer's discretion
Loan disbursement and servicing fee
Not applicable
0.1% daily
0.13% daily
Loan prepayment penalty
In case of early repayment of the loan, a penalty of 5% of the amount repaid early is applied
Applicable to loans with a contractual amount of AMD 5,000,001 and above
Collateral/Pledged asset
For loans of AMD 300,000 - 3,000,000:
Guarantee of at least 1 individual or private entrepreneur (PE).
The guarantor must be a real estate owner or a formally employed person.
For loans of AMD 3,000,001 – 10,000,000:
Guarantees of at least 2 individuals or private entrepreneurs (PEs).
At least one of the guarantors must be a real estate owner or a formally employed person.
For loans of AMD 2,000,000 – 260,000,000:
1. Real estate and/or
2. Guarantee(s)
For legal entity customers: personal guarantees of the business founders and beneficial owners,
For private entrepreneurs, where the beneficial owner is a third party: guarantee of the beneficial owner.
3. Movable property. If the real estate does not ensure the required loan-to-value (LTV) ratio, movable property may serve as additional collateral. In case of a pledge of both real estate and movable property, the share of movable property in the calculation of the total LTV ratio may not exceed 20%.
Other types of collateral may also be accepted by decision of the Credit Committee.
In case of a pledge of a motor vehicle, the vehicle's age (from the year of manufacture) may not exceed:
for Russian-made vehicles: 5 years,
for vehicles manufactured in other countries: 10 years.
Insurance
The vehicle is subject to mandatory CASCO (physical damage and theft) insurance in favor of the Bank, for an amount not less than the loan amount, with the insurance contract to be renewed annually throughout the entire loan term. The insurance is carried out at the Borrower's expense throughout the entire loan term.
Maximum Loan-to-Value ratio
Not applicable
According to Appendix 1.
Not applicable
The collateral is subject to valuation by an independent appraisal company cooperating with the Bank and/or by a Bank employee, depending on the loan amount.
Valuation by a Bank employee is performed free of charge.
Requirements for Guarantors (if any)
An individual or private entrepreneur (aged 18-65) who:
has no current overdue credit liabilities;
whose total number of overdue days over the last year must not exceed 30 days.
At least one of the guarantors must be a real estate owner or have a registered (formal) salary.
Term for making a decision on loan disbursement
Decision on the loan application within up to 7 business days after submission of the required documents
Term for notification of the decision
Up to 1 business day after the decision is made
Term for making term
Up to 1 business day after submission of all required documents and state registration of the pledge right
Decision validity maximum term
30 business days
The Bank is entitled to refuse to disburse the loan if any of the conditions deemed material for making a positive decision on the loan disbursement have changed
* Loans under this loan product are provided within the framework of the "RA Agriculture Sector Support" lending program implemented by the "German-Armenian Fund" Program Management Office (GAF) and financed by KfW, the German development bank of the Federal Republic of Germany (hereinafter the "Program")
** At least 50% of the participants (shareholders) of legal entities must be RA resident private owners.
The Borrower (legal entity and private entrepreneur) must meet the following criteria for SME entities set out in the RA Law "On State Support to Small and Medium Entrepreneurship":
Micro: commercial organizations and private entrepreneurs with an average headcount of up to 10 employees, and whose revenue from the previous year's activities or the balance sheet value of assets as at the end of the previous year does not exceed AMD 100 million;
Small: commercial organizations and private entrepreneurs with an average headcount of up to 50 employees, and whose revenue from the previous year's activities or the balance sheet value of assets as at the end of the previous year does not exceed AMD 500 million;
Medium: commercial organizations and private entrepreneurs with an average headcount of up to 250 employees, and whose revenue from the previous year's activities or the balance sheet value of assets as at the end of the previous year does not exceed AMD 1,500 million and AMD 1,000 million, respectively.
*** The total outstanding balance of loans provided to the same borrower under the Program may not exceed AMD 160,000,000.
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.