“SMART” Լivestock (subsidized)

Resident legal entity or individual entrepreneur of the Republic of Armenia

Construction or reconstruction of “smart” livestock facilities with loose housing and their technological equipping

Model 1 livestock facility: designed for 20–25 head of cattle

Model 2 livestock facility: designed for 40–45 head of cattle

Model 3 livestock facility: designed for 95–100 head of cattle

Loan type

AMD 

Model 1 livestock facility: 1,000,000 – 30,000,000 AMD

Model 2 livestock facility: 1,000,000 – 46,000,000 AMD

Model 3 livestock facility: 1,000,000 – 114,000,000 AMD

13% ***

2.04 – 13.69%

In case of misuse of loan funds by the borrower, disclosure of false or unreliable information, as well as negative results of monitoring conducted by the Bank, the Bank unilaterally increases the loan interest rate or requires full or partial early repayment of the loan. The Bank also has the right to require full or partial early repayment of the loan.

11 percentage points ****

The loan interest rate is subsidized to the extent that the annual interest rate payable by the borrower amounts to 2%.

Minimum term: 12 months

Maximum term: 60 months

0 - 18 months

-   The technical standards for livestock buildings are presented in Appendix 1, and the list of devices necessary for technological support is presented in Appendix 2.

-   Loan interest rate subsidy is terminated if:

• there are overdue liabilities of the Borrower for the loan provided under this loan type for more than 60 days in total over the previous 12 months or the loan is not classified as a standard class due to overdue liabilities

• the livestock building has not been put into operation within a maximum of 1 year after the conclusion of the contract between the Ministry of Economy of the Republic of Armenia and the Borrower

• the loan was used for an unintended purpose

• the requirements set out in the Program were not met or a violation of the Program conditions was detected as a result of monitoring

• False information was provided by the borrower

• The loan agreement signed between the Bank and the Borrower was early terminated.

-   In cases of misuse of the loan by the borrower and provision of false information, as well as negative monitoring results, the subsidy amount provided up to that point is subject to refund.

-   The construction or reconstruction of the livestock building, as well as their technological support, must be carried out by relevant service providers (contractors) that meet the conditions set out in the Program and are licensed by the Urban Development Committee of the Republic of Armenia. After the construction of the livestock building, the contractor shall provide warranty and post-warranty service.

-   Applications to become a beneficiary of the program can be submitted until November 1, 2028.

- Credit history:

• The total number of days of non-classification and/or overdue liabilities during the last 12 months should not exceed 30 days.

• Absence of current overdue liabilities. 

- Absence of unfulfilled tax liabilities on income controlled by the tax authority during the 365 days preceding the date of submission of the application.

- The age of the Borrower, who is an individual entrepreneur, is 18-65 years old.

• Annuity (equal monthly payment of principal and interest)

• Differentiated (equal monthly payment of principal and monthly payment of interest)

• Individual payment schedule depending on the specifics of the business

 Payment method per the customer's choice

 Not applicable

0.1% per day

0.13% per day

none

Real estate and/or

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.

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%.

By decision of the Credit Committee, other forms of collateral may also be required.

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 3

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 renewal of the insurance contract every year during the entire term of the loan.

The insurance is carried out at the expense of the Customer.

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.

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.

Decision on loan application within 5 business days after submitting required documents

Up to 1 business day after the decision is made

After being informed about the decision to provide a loan, the Client applies to the Ministry of Economy of the Republic of Armenia to sign an agreement with the latter

After signing the contract with the Ministry of Economy of the Republic of Armenia, submitting all the required documents and carrying out state registration of the pledge right - up to 1 business day *****

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.