Terms
&
tariffs
"FAST TAX" LOAN INFORMATION SUMMARY
Borrower
RA resident:
Sole proprietor, Legal entity
! The business must be registered and have been 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
1%
Interest on the unused portion of a card credit line
0%
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.
The credit line may be provided via a card, in an amount not exceeding 15,000,000 AMD or the equivalent in foreign currency, with a term that may not exceed the card's expiration date.
Loan term
12–60 months.
The term of a revolving credit line may not exceed 36 months, while for a non-revolving credit line, principal repayments must begin no later than the 36th month.
Grace period for principal
0–6 months: for loans
0–35 months: for credit lines
Repayment method
For loans:
1. Annuity, equal monthly payment of principal and interest;
2. Differentiated, equal monthly principal payments plus monthly interest payment;
3. Individual payment schedule, depending on the specifics of the business.
For credit lines:
1. Monthly interest payment, with the principal repaid at the end of the term;
2. Individual payment schedule, depending on the specifics of the business;
3. For non-revolving credit lines, principal repayments must begin no later than the 36th month.
The repayment method is determined by the customer's choice, subject to the Bank's approval.
Requirements toward the Borrower (and toward participants/shareholders or the beneficial owner of a legal entity)
Credit history:
1. Over the last 12 months, no below-satisfactory classification and/or the total number of overdue days must not exceed 15 days;
2. No current overdue liabilities;
3. For individual entrepreneurs acting as Borrower and/or Guarantor, age 18–65. If all participants/founders/shareholders of a Borrower that is a legal entity fall outside the 18–65 age range, at least one guarantor within the 18–65 age group is mandatory.
COMMISSIONS, PENALTIES AND FINES
Loan disbursement and servicing fee
Not established
Penalty for overdue principal
0.1% per day
Penalty for overdue interest
0.13% per day
Early repayment penalty
5% of the amount repaid early.
*Applicable to loans with a contractual amount exceeding 5,000,000 AMD or its foreign-currency equivalent.
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 / SECURITY
Collateral / security
1. Turnover of the customer's bank account(s) serviced at "Fast Bank" CJSC (hereinafter also "the Bank");
2. For legal-entity customers: guarantee by the shareholder(s)/participant(s)/beneficial owner(s);
3. For individual-entrepreneur customers: guarantee by the beneficial owner(s);
4. Other collateral/security measures may also be established by decision of the Credit Committee.
Requirements toward Guarantors (if applicable)
An individual (aged 18–65) who:
1. has no current overdue liabilities;
2. whose total overdue days over the last year do not exceed 30 days.
For individual guarantors, at least one guarantor must own real estate or have a registered (official) salary.
Loan-to-collateral ratio and additional conditions
Maximum 10% of the turnover reflected in the customer's tax reports for the preceding 12 months. In addition:
1. The monthly repayment amount across all of the customer's current loans (including the loan under consideration) must not exceed 25% of the average monthly turnover carried out over the last 12 months according to tax reports. Where the customer has operated for less than 12 months, average monthly turnover is calculated based on the months of actual operation.
Following loan disbursement, the Borrower must maintain net credit turnover (NCT)**** on account(s) opened with the Bank at least equal to the loan balance. This condition is checked:
– for the first time 6 months after disbursement, and thereafter quarterly, based on data from the preceding 6 months;
– if the condition is met at the first check (6 months after disbursement), the loan's annual nominal interest rate is reduced by 0.25 percentage points;
– if the condition is not met, the Bank is entitled to raise the interest rate by up to 3 percentage points, or to demand full or partial early repayment of the loan, and — in the case of a credit line — also full or partial reduction of the credit line limit.
OTHER CONDITIONS
Site visit to the Borrower's place of business; financial and economic analysis
No financial and economic analysis is performed; if necessary, a visit to the Borrower's place of business may be conducted.
Deadline for the decision on loan disbursement
Decision on the loan application is made within up to 2 business days after submission of the required documents.
Deadline for notifying the customer of the decision
Up to 1 business day after the decision is made.
Loan disbursement deadline
Up to 3 business days after submission of all required documents.
Maximum validity period of the decision
30 business days.
The Bank is entitled to refuse loan disbursement if any of the conditions deemed material to the positive decision on loan disbursement have changed.
Business card terms and rates
In accordance with the tariffs in effect at the Bank (see fastbank.am/hy/business/cards).
NACE classifier code | Name |
45.11 | Sale of light passenger cars and light motor vehicles (excluding car showrooms) |
66.19 | Other activities auxiliary to financial services (except insurance and pension funding) |
66.12.2 | Activities of currency exchange offices and similar entities |
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 services and other tourism-related services |
*** If the loan is not refinanced by the Program Management Office of the "German-Armenian Fund," or is used for a purpose other than intended, the loan's annual nominal interest rate may be changed and set at 24%. Disbursement of the loan under the "MSME Support" credit program financed by KfW Bank may be carried out only where the criteria of that program are met.
For existing Bank customers, if in the 6 months preceding review of the loan application the Borrower has maintained net credit turnover (NCT) on account(s) opened at the Bank at least equal to the loan amount, the loan's annual nominal interest rate is set 0.25 percentage points lower — except for loans financed under the "German-Armenian Fund" program. If, at the time of loan disbursement, the interest rate has already been set 0.25 percentage points lower, no further reduction of the interest rate will subsequently be applied to that loan.
**** For the purpose of calculating NCT, incoming transactions to the Bank's current account(s) are used as the basis. Loan-disbursement receipts, receipts from currency conversion, and transfers/replenishments between the customer's own accounts at the Bank (including deposit placement, closure, or replenishment, and deposit interest payments) are not included in the NCT calculation.
GENERAL PROVISIONS
1. Loan interest is calculated on the loan balance based on a 365-day year.
2. The loan is disbursed in non-cash form to a bank account opened at the Bank.
3. The list of required documents is set out in separate Annexes posted on the Bank's website.
4. The loan is disbursed at the Bank's Head Office and at all branches.
5. Factors for a positive decision on loan disbursement: (1) the Borrower's and the Collateral provider's/Guarantor's compliance with the requirements set out in this document.
6. Factors for rejection of the loan: (1) non-compliance of the Borrower and/or the guarantor with the requirements set out in this document.
7. Any amount deposited for loan repayment is applied by the Bank toward amounts then due from the Customer under the Loan Agreement, including penalties, interest, and repayment of the loan principal. The Bank has the right to establish a different order of application of payments in the agreement concluded with the Customer.
8. For loans issued in foreign currency, the calculation of interest amounts due (and penalties/fines, if any), as well as the calculation of the annual percentage rate, is based on the exchange rate set by the Central Bank of RA for the relevant day.
9. The annual percentage rate of a foreign-currency loan may change depending on changes in the exchange rate published on the official website of the Central Bank of the Republic of Armenia.
10. In the event of early repayment of the loan by the customer, interest calculated on the loan balance, commissions, and service fees (if any) are reduced proportionally; however, penalties/fines (if any), commissions charged for transfers made for loan-repayment purposes and/or other transactions, and amounts charged for servicing accounts opened for loan-servicing purposes are not subject to reduction.
11. Rates for non-financial services, including the terms for providing statements, duplicate agreements, and other information, are published on the Bank's official website www.fastbank.am, and are also posted at the Bank's places of business.
12. CHANGES IN THE FOREIGN-EXCHANGE RATE MAY AFFECT LOAN REPAYMENTS AS WELL AS THE ANNUAL PERCENTAGE RATE.
13. WARNING: IF INTEREST AND THE LOAN AMOUNT ARE NOT PAID ON TIME, THE PLEDGED PROPERTY MAY BE FORECLOSED IN THE MANNER PRESCRIBED BY LAW.
14. IF THE AMOUNT OBTAINED FROM THE SALE OF THE PLEDGED PROPERTY IS LESS THAN THE TOTAL OF THE SECURED CLAIM AND THE COSTS OF SELLING THE PLEDGED PROPERTY, THE LENDER HAS THE RIGHT TO RECOVER THE SHORTFALL FROM THE BORROWER'S OTHER PROPERTY.
15. ATTENTION: IF YOU FAIL TO FULFILL, OR PARTIALLY FULFILL, YOUR OBLIGATION WITHIN THE DEADLINES SET BY THE REPAYMENT SCHEDULE, THE BANK WILL, WITHIN 3 BUSINESS DAYS, SEND THIS DATA TO THE CREDIT BUREAU AND TO THE CREDIT REGISTRY OF THE CENTRAL BANK OF RA, 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 A LOAN IN THE FUTURE.
16. ATTENTION: LOAN INTEREST IS CALCULATED ON THE BASIS OF THE NOMINAL INTEREST RATE, WHILE THE ANNUAL PERCENTAGE RATE SHOWS HOW MUCH THE LOAN WILL COST IF INTEREST AND OTHER PAYMENTS ARE MADE WITHIN THE ESTABLISHED DEADLINES AND AMOUNTS. THE PROCEDURE FOR CALCULATING THE ANNUAL PERCENTAGE RATE IS POSTED ON THE BANK'S OFFICIAL WEBSITE (www.fastbank.am).
17. ATTENTION: YOU HAVE THE RIGHT TO COMMUNICATE WITH THE BANK IN YOUR PREFERRED MANNER — BY POSTAL MAIL OR ELECTRONICALLY. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT: IT IS AVAILABLE 24/7, IS FREE FROM THE RISK OF LOSING PAPER INFORMATION, AND ENSURES CONFIDENTIALITY.
18. ATTENTION: THE BANK WILL PROVIDE YOU WITH MANDATORY DISCLOSURE INFORMATION ELECTRONICALLY. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT: IT IS AVAILABLE 24/7, IS FREE FROM THE RISK OF LOSING PAPER INFORMATION, AND ENSURES CONFIDENTIALITY. YOU HAVE THE RIGHT TO WAIVE ELECTRONIC COMMUNICATION WITH THE BANK, PROVIDED YOU RECEIVE THE MANDATORY DISCLOSURE INFORMATION BY POST OR OTHER MEANS OF COMMUNICATION.
19. ATTENTION: YOUR "FINANCIAL GUIDE" IS AN ELECTRONIC SYSTEM FOR SEARCHING AND COMPARING SERVICES OFFERED TO INDIVIDUALS AND FOR MAKING IT EASIER TO CHOOSE THE MOST EFFECTIVE OPTION FOR YOU: www.fininfo.am.
20. ATTENTION: BEFORE SIGNING THE AGREEMENT, THE BANK WILL PROVIDE YOU WITH AN INDIVIDUAL SHEET OF THE ESSENTIAL LOAN TERMS, SETTING OUT THE INDIVIDUAL TERMS OF THE LOAN TO BE PROVIDED TO YOU.
21. IF THE BORROWER FAILS TO FULFILL THE LOAN OBLIGATIONS, THE BANK HAS THE RIGHT TO DEMAND THAT THE GUARANTOR FULFILL THE LOAN OBLIGATIONS; AS A RESULT OF SUCH NON-FULFILLMENT, THE GUARANTOR'S CREDIT HISTORY MAY WORSEN AND THE GUARANTOR MAY LOSE THEIR OWN PROPERTY.
22. UNDER THE AGREEMENT SIGNED WITH THE UNITED STATES PURSUANT TO THE FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA), THE BANK MAY COLLECT ADDITIONAL INFORMATION TO DETERMINE WHETHER YOU ARE A US TAXPAYER.
23. FOR THE PURPOSE OF CUSTOMER DUE DILIGENCE AS ESTABLISHED BY THE RA LAW "ON COMBATING MONEY LAUNDERING AND TERRORISM FINANCING," THE BANK MAY, BASED ON THE "KNOW YOUR CUSTOMER" PRINCIPLE, REQUEST ADDITIONAL DOCUMENTS OR OTHER INFORMATION FROM THE CUSTOMER, AS WELL AS ASK THE CUSTOMER ADDITIONAL QUESTIONS DURING VERBAL COMMUNICATION (WHERE SUCH A NEED ARISES).
24. ATTENTION: THE BANK IS SUPERVISED BY THE CENTRAL BANK OF THE REPUBLIC OF ARMENIA.