Terms
tariffs
Loan/Lease type
GAF-EIB loans
Borrower
Private entrepreneur, legal entity, resident of the Republic of Armenia
Loan Purpose
Business development and expansion
Industry
Agriculture, tourism, manufacturing
Loan Target Directions
Energy efficiency, promotion of women's entrepreneurship, regional development, promotion of digitalization and automation
Loan Currency
AMD
Loan Amount
10,000,000 - 2,000,000,000 AMD
Annual Nominal Loan Interest Rate (Fixed)*
11%
Terms of change of annual nominal interest rate
In the event that the borrower uses the loan funds for other purposes, makes significant deviations from the program, fails to comply with the conditions set by the Program, the GAF does not qualify/refinance the loan, or terminates the qualification/refinancing of the provided loan, the Bank has the right to unilaterally increase the loan interest rate, setting it up to 24%, or demand full or partial early repayment of the loan.
Loan term
24-90 months
0-24 months
Method of payment
Annuity (equal monthly payment of principal and interest).
Differentiated (equal monthly payment of principal and interest).
Individual payment schedule, depending on the specifics of the business.
Repayment method at the customer's choice.
Loan application review fee
Not applicable
Loan provision and servicing fee
Not applicable
0.1% daily
Penalty for overdue interest
0.13% daily
Penalty for early repayment of the loan
Not applicable
COLLATERAL
Collateral
Real estate and/or
Guarantee/s
In the case of clients who are legal entities, personal guarantees of the founders of the business and the beneficial owners,
In the case of individual entrepreneurs, if the beneficial owner is a third party, a guarantee of the beneficial owner.
Movable property
Other security measures may also be provided by the decision of the Credit Committee.
In the case of a vehicle pledge, the production period cannot exceed:
for cars of Russian production - 5 years,
for cars of foreign production - 10 years.
Loan/Pledge Maximum Value
According to Appendix 1
Insurance
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 annual renewal of the insurance contract throughout the entire loan term.
The insurance is carried out by the customer.
Valuation of Collateral
The collateral is subject to valuation by an independent property valuation agency cooperating with the Bank and/or an employee of the Bank, depending on the loan amount.
The valuation by the Bank employee is carried out free of charge.
Claims to Guarantors (if required)
Guarantee of at least 1 individual (18-65 years old):
who has no current overdue credit obligations,
whose total number of overdue days in the last year shall not exceed 30 days.
At least one of the guarantors shall be the owner of real estate or be provided with a registered salary.
OTHER CONDITIONS
Deadline for making a
decision on
granting a loan
Decision on loan application within 7 business days after submission of required documents
Deadline for notification of
the decision
Up to 1 business day after decision
Deadline for granting a loan
Up to 1 business day after submission of all required documents and state registration of collateral
Maximum validity period of
the decision
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.
* The interest rates of the loans provided are subject to subsidy within the framework of the "Productivity Promotion Target Program" (Appendix 1) approved by the RA Government's Resolution No. 355-L of March 26, 2020 "On Approval of Targeted Programs for the Modernization of the Economy", subject to the fulfillment of the latter's conditions (in case of changes in the conditions, the conditions currently in force in the RA Government's resolution shall apply), under the conditions provided for in the "Productivity Promotion Loan" loan type operating at the Bank.
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.