Productivity loan

RA resident legal entity, private entrepreneur

1. Purchase or import of new (unused) machinery and equipment and its components**

2. Acquisition of digital programs or platforms for the purpose of digitalization of business processes

3. Capital construction**** in the RA regions (except Yerevan) for the purpose of construction or reconstruction of a hotel and sanatorium (hotel facilities)***

Loan

AMD, USD

1. Purchase (import) of new (unused) machinery and equipment and its components: 500,000 - 1,000,000,000 AMD (1,000 – 2,500,000 USD)  *****

2. Acquisition of digital programs or platforms for the purpose of digitalization of business processes: 500,000 - 400,000,000 AMD (1,000 – 1,000,000 USD)

3. Capital construction for the purpose of construction or reconstruction of a hotel and sanatorium (hotel facilities): 500,000 - 1,000,000,000 AMD (1,000 – 2,500,000 USD)

The loan amount includes the purchase price of the loan object, costs related to import into the Republic of Armenia (transportation, customs clearance, payment of value-added tax and other costs related to transportation, if any). In the event that the structure (construction) forms an integral part of the technological equipment purchased with the loan funds, the cost of the structure may be included in the loan amount.

24-120 months

0-6 months

In case of misuse of loan funds by the borrower, failure to comply with the requirements set forth in the Program, as well as the disclosure of false or unreliable information, the Bank has the right to unilaterally increase the loan interest rate or demand full or partial early repayment of the loan.

1. The program will be in effect until December 31, 2026.

2. The supply process subsidy is provided for a period of up to 180 days, starting from the date of loan disbursement, and the borrower is responsible for paying interest for the period exceeding 180 days.

3. The loan interest rate subsidy is terminated if:

• the loan funds have been used for purposes other than their intended purpose

• the requirements set forth in the program have not been met or a violation of the program terms has been identified as a result of monitoring

• inaccuracies, discrepancies, or falsifications have been identified in the documents submitted by the borrower.

4. In cases where the borrower has used the loan for purposes other than their intended purpose, has not met the requirements set forth in the program, has identified a violation of the program terms as a result of monitoring, or has identified inaccuracies, discrepancies, or falsifications in the submitted documents, the subsidy amount provided up to that point is subject to refund.

5. The loan is subject to use in the following areas of activity according to the Classification of Types of Economic Activities approved by the Order N 874-N of the Minister of Economy of the Republic of Armenia dated September 19, 2013․

• B: “Mining and quarrying”,

• C: “Developing industry”,

• D: “Supply of electricity, gas, steam and air” (except for “Generation of electricity in solar power plants (35.11.5)”),

• E 38.2-38.3: “Processing and disposal of waste, recovery of materials”,

• F: “Construction”,

• G 45.2: "Motor vehicle maintenance and repair",

• H: "Transportation and warehousing",

• I 55: “Organization of accommodation” (except for economic operators carrying out accommodation organization activities within the administrative boundaries of Yerevan city,

• J: “Information and communication”,

• M: “Professional, scientific and technical activities”,

• N 77: “Rent and leasing”,

• P: “Education”,

• Q: “Healthcare and social services of the population”,

• R 90: “Activities in the field of organization of creative, artistic and theatrical performances”.

6. Use of loan funds - only non-cash and via bank transfers.

7. Within the framework of this loan type, the customer’s loan operating within the framework of the Program in another bank/credit organization may be refinanced, provided that the subsidy continues under the terms and conditions specified by the Program, without extending the total subsidy period. Moreover, within the framework of the Program, the loan Refinancing (transfer) is allowed a maximum of once per customer.

Credit history:

• No delinquency and/or total number of days overdue for the last 12 months shall not exceed 30 days.

• No current overdue liabilities.

Age of the borrower who is a private entrepreneur: 18-65 years.

1. Annuity (equal monthly payment of principal and interest).

2. Differentiated (equal monthly payment of principal and interest).

3. Individual payment schedule, depending on the specifics of the business.

Repayment method at the customer's choice.

Not applicable

0.1% daily

0.13% daily

Not applicable

• 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.

• In the case of loans provided only with a guarantee:

- Loans in the amount of 500,000 - 3,000,000 AMD (1,000 - 7,000 USD) are provided with the guarantee of 1 individual or private entrepreneur.

- Loans in the amount of 3,000,001 - 10,000,000 AMD (7,001 - 25,000 USD) are provided with the guarantee of 2 individuals or private entrepreneur.

According to Appendix 1.

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.

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.

An individual (18-65 years old):

1. who has no current overdue credit obligations;

2. 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.

After submitting the required documents, a decision on the loan application is made within 7 business days.

The Bank makes a decision on the loan application with interest rate subsidy for capital construction or reconstruction of hotel facilities after submitting the application, along with the attached investment project and documents serving as the basis for its assessment, to the Tourism Committee of the Ministry of Economy of the Republic of Armenia and receiving a positive conclusion from a professional assessment of compliance with the minimum requirements and standards set by the latter, as well as the priorities of the state policy for tourism development.

Up to 1 business day after decision

Up to 1 business day after submission of all required documents and state registration of collateral

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.