Terms
tariffS
Borrower
RA resident: Private Enterprise, Legal Entity
! Business must be registered and operating for at least 6 months
Loan purpose*
Financing of current expenses, capital and mixed investments; repayment of accounts payable; refinancing of business loans.
Loan type
Loan / credit line provided on the basis of tax turnover.
Loan currency
AMD
USD
Loan amount**
2,500,000 – 50,000,000 AMD
6,000 – 130,000 USD
Annual nominal interest rate*** (fixed rate)
13.4%
*within the "MSME Support" credit program, implemented by the Program Management Office of the "German-Armenian Fund" and financed by KfW Bank
15%
12%
Interest on the used portion of a credit line
Not applicable
15.5%
12.5%
Interest on the unused portion of a credit line
Not applicable
1%
Annual percentage rate (APR)
Loan: 14.24% – 16.10%
Credit line: 16.63% – 17.81%
Loan: 12.67% – 12.70%
Credit line: 13.23% – 14.37%
*In accordance with the RA Law "On Consumer Crediting," the annual percentage rate is calculated for loans up to and including 5,000,000 AMD and/or its foreign-currency equivalent.
Loan term
12–60 months.
In addition, the term of a recoverable credit line cannot exceed 36 months, and in the case of a non-recoverable credit line, principal repayments are set at least from the 36th month.
Grace period for principal
0-6 months in the case of loans,
0-35 months in the case of credit lines
Repayment method
In case of a loan:
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
In case of a credit line:
Monthly payment of interest, and the principal at the end of the term, or
Individual payment schedule depending on the specifics of the business
In case of a non-recoverable credit line, principal repayments are set at least from the 36th month.
Repayment method according to the customer's choice and approval of the Bank.
Claims against the borrower (also participants/shareholders of a legal entity, beneficial owner)
Credit history:
No delinquency and/or total number of days of overdue obligations in the last 12 months shall not exceed 15 days
No current overdue obligations
Age of the Borrower and/or Guarantor who is an individual entrepreneur: 18-65 years old. In the event that the age of all participants/founders/shareholders of the Borrower who is a legal entity exceeds 65 years old, then at least 1 guarantor is required in the age group of 18-65.
INTERMEDIATE FEES, PENALTIES AND FINES
Loan disbursement and servicing fee
Not defined
Penalty for overdue principal
0.1% daily
Penalty for overdue interest
0.13% daily
Penalty for early repayment of the loan
5% of the amount repaid early
Applicable to loans with a contractual amount exceeding 5,000,000 or equivalent in foreign currency
Penalty for early reduction of the credit line limit or early termination of the agreement
In case of limit reduction: 5% of the reduced amount.
In case of early termination of the agreement: 5% of the current limit.
Applicable to loans with a contractual amount exceeding 5,000,000 AMD or its foreign-currency equivalent.
COLLATERAL
Collateral
Turnover of the customer's bank account(s) serviced at "Fast Bank" CJSC (hereinafter also "the Bank");
For legal-entity customers: guarantee by the shareholder(s)/participant(s)/beneficial owner(s);
For individual-entrepreneur customers: guarantee by the beneficial owner(s);
Other collateral/security measures may also be established by decision of the Credit Committee.
Requirements for guarantors
(if any)
An individual (18-65 years old) who:
has no current overdue liabilities;
the total number of overdue days in the last year must not exceed 30 days.
In the case of guarantors who are natural persons, at least one of the guarantors must be the owner of real estate or be secured by a registered salary.
Loan/collateral ratio and additional terms
In the amount of a maximum of 10% of the turnover reflected in the customer's tax reports for the previous 12 months.
Moreover,
The monthly repayment amount for servicing all of the customer's existing loans (including the loan under consideration) shall not exceed 25% of the average monthly turnover amount for the last 12 months according to tax reports. Moreover, in case the customer has been in business for less than 12 months, the average monthly turnover is calculated based on the actual months of activity։
After the loan is granted, the Borrower is obliged to ensure a net credit turnover (NCT)**** in the amount of the loan balance in the bank account(s) opened with the Bank:
The fulfillment of the condition is checked for the first time 6 months after the loan is granted, and then every quarter based on the data of the previous 6 months
If, as a result of the first check carried out 6 months after the loan is granted, the condition specified in this clause is considered to be met, the annual nominal interest rate of the loan is reduced by 0.25 percentage points
In case of failure to meet the condition, the Bank has the right to increase the loan interest rate by up to 3 percentage points or demand full or partial early repayment of the loan, and in the case of a credit line, also a full or partial reduction of the credit line limit.
OTHER CONDITIONS
Visit to the borrower's place of business, financial and economic analysis
Financial and economic analysis is not carried out, if necessary, a visit to the Borrower's place of business may be carried out
Deadline for making a decision on granting a loan
After submitting the required documents, a decision on the loan application is made within 2 business days.
Deadline for notifying the customer of the decision
Up to 1 business day after the decision is made
Deadline for granting a loan
Up to 3 business days after submitting all the required documents
Maximum validity period of the decision
30 business days
In addition, the Bank has the right to refuse to provide a loan if any of the conditions considered essential for making a positive decision on providing a loan have changed
* In case of refinancing of loans secured by real estate collateral operating in other banks, the Credit Committee may require the pledge of such collateral in the Bank by decision of the Credit Committee.
** The total balance of loans of the Customer and the organizations affiliated with the Customer, whose field of activity, according to the RA IAPR data, coincides with the field of activity of the Customer, operating in the Bank and other financial organizations of the Republic of Armenia (including the loan under consideration), without collateral and/or secured by account turnover, cannot exceed 100,000,000 AMD and/or equivalent foreign currency, as well as the total balance of loans of the mentioned persons operating in the Bank without collateral and/or secured by account turnover cannot exceed 10% of the total turnover reflected in the tax reports for the previous 12 months.
In the case of customers providing intermediary services as defined in the list below, the maximum lending limit is 10,000,000 AMD or equivalent foreign currency.
NACE code | Name |
45.11 | Sale of light passenger cars and light motor vehicles /except car dealerships/ |
66.19 | Other activities auxiliary to financial services (except insurance and pension funding) |
66.12.2 | Activities of foreign exchange offices and similar offices |
66.22 | Activities of insurance agents and brokers |
68.31 | Activities of real estate agencies |
79.1 | Activities of travel agencies and tour operators |
79.9 | Reservation and other tourism services |
*** In case of non-refinancing of the loan by the “German-Armenian Fund” Program Management Office, as well as non-targeted use, the annual nominal interest rate of the loan may be changed and set at 24%. The loan may be provided within the framework of the “SME Support” loan program financed by KfW Bank exclusively if the criteria of the specified program are met.
In the case of existing customers of the Bank, if during the last 6 months preceding the consideration of the loan application, the Borrower has ensured a net credit turnover (NTR) of at least the amount of the loan in the bank account(s) opened with the Bank, then the annual nominal interest rate of the loan is set by 0.25 percentage points lower, with the exception of loans financed by the “German-Armenian Fund” program. Moreover, if at the time of loan provision the loan interest rate has already been set by 0.25 percentage points lower, then no additional reduction of the interest rate is implemented in the future for the given loan.
**** The basis for calculating the NTR is the inflows received to the current account(s) with the Bank. Moreover, the NTR calculation does not include inflows of credit funds, inflows from foreign currency conversion, transfers/replenishments made from one account of the Customer with the Bank to another, including the deposit/termination/replenishment, payment of interest on the deposit.:
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.