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Terms
tariffs
Fast business
Simple business
Resident of the Republic of Armenia: Private Enterprise, Legal Entity (KFW),
an individual aged 18-65 engaged in agricultural activities
! The business must be registered and have been operating for at least 6 months*.
To MSMEs (for capital, current, and mixed investments)
Loan type
KfW MSME loans
AMD
300,001-10,000,000 AMD
2,000,000-260,000,000 ՀՀ դրամ
A loan of up to AMD 5,000,000 may be granted to a start-up business (operating for up to 6 months).
(A business is considered a start-up if the potential borrower has not owned or operated any other business—whether in agriculture or other sectors—during the preceding 6 (six) months.)
12.4%
Up to 60 months: 11.9%
Starting from the 61st month: the annual interest rate applicable at the Bank at that time under the
"Commercial Loans" loan type, in line with the contractual term of the loan, based on the Bank’s own resources.
13.09 - 13․11% 12․56 - 15․91%
! In the event that the "German-Armenian Fund" Program Management Office fails to qualify the loan or revokes the qualification of a previously qualified loan, or if the Borrower misuses the loan proceeds, the loan shall be deemed to be funded by the Bank’s own resources; thereafter, the loan shall continue to be serviced at the annual interest rate applicable at that time to the Bank’s own-resource "Commercial Loans" product, in accordance with the loan's contractual term.
Minimum term: 24 months
Maximum term: 60 months
Minimum term: 24 months
Maximum term: the maximum term currently applicable under the "Commercial Loans" loan type within the Bank, based on the Bank’s own resources.
0–24 months, depending on the specifics of the business.
None
0.1% daily
0.13% daily
Penalty for early loan repayment
In the event of early loan repayment, a penalty equal to 5% of the early repayment amount is applied.
This applies to loans with a contractual amount of AMD 5,000,001 or more.
Annuity (equal monthly payment of principal and interest)
Equal monthly payment of the differentiated/principal amount and interest/
Individual repayment schedule
Repayment method of the client's choice
Security measure / Collateral
For loans ranging from AMD 300,001 to AMD 3,000,000:
- Guarantee from at least one individual (aged 18–65) or an individual entrepreneur who has no outstanding overdue obligations,
- The guarantor must be a real estate owner or have a documented salary.
For a loan amount of 3,000,001–10,000,000 AMD:
- Guarantees from at least 2 individuals (aged 18–65) or individual entrepreneurs who have no outstanding overdue obligations.
- At least one of the guarantors must be a real estate owner or have a documented salary.
- The total number of days of overdue obligations for each guarantor over the past year must not exceed 30 days.
- The Credit Committee may also stipulate other forms of collateral.
2,000,000 – 260,000,000 AMD
- Real estate (building) and/ or vehicle*** (mortgage agreement to be notarized),
By decision of the Credit Committee, other forms of collateral may also be stipulated, including agricultural machinery:
*** Vehicle; at the time of pledging, the manufacturing year must not be older than:
- for Russian-made vehicles: 5 years,
- for vehicles made in other countries: 10 years:
The vehicle is subject to mandatory "Casco" insurance (covering physical damage and theft) for the benefit of the Bank, for an amount at least equal to the loan amount, with the requirement that the insurance contract be renewed annually throughout the entire term of the loan. The insurance is maintained at the Borrower's expense for the entire duration of the loan.
Maximum Loan-to-Collateral Value
None
In accordance with Annex 1
None
The collateral is subject to valuation by an independent property valuation agency partnering with the Bank and/or by a Bank employee, depending on the loan amount.
Valuation performed by a Bank employee is free of charge.
* The total amount of outstanding loans to the same borrower cannot exceed AMD 260 million, including:
- The amount of the loan for the purpose of acquiring working capital cannot exceed AMD 100 million,
- The amount of the loan for investment or mixed purposes cannot exceed AMD 160 million
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.