Terms
tariffs
RA resident legal entity, individual entrepreneur**
Purpose of the loan/lease
Import of raw materials
Raw materials may be sourced from China, India, Italy, Uzbekistan, South Korea, Bangladesh, Turkmenistan, Tajikistan, the Islamic Republic of Iran, and EAEU member states.
The loan is disbursed exclusively via cashless transactions and bank transfers.
Business loan
AMD
USD
AMD
- Minimum 1,000,000 AMD, Maximum 10,000,000 AMD
- Minimum 2,000,000 AMD, Maximum The total value of the Customer's goods exported from the Republic of Armenia under the "Export" customs procedure "Manufacture of Textile Products" (C(SI)13) and "Manufacture of Clothing" (C(SI)14), as well as other classifications established by the decision of the Government of the Republic of Armenia, in drams, but not more than the permissible limit provided for by the maximum risk standard for one borrower established by the Bank's internal legal acts
US dollar
- Minimum: 2,500 US dollar Maximum: 25,000 US dollar
- Minimum: 5,000 USD; Maximum: The total value of the Customer's goods exported from the Republic of Armenia under the "Export" customs procedure "Manufacture of Textile Products" (C(SI)13) and "Manufacture of Clothing" (C(SI)14), as well as other classifications established by the decision of the Government of the Republic of Armenia, in drams, but not more than the permissible limit provided for by the maximum risk standard for one borrower established by the Bank's internal legal acts
- The loan amount includes the purchase price of raw materials (goods), transportation, customs clearance, VAT payment and other transportation-related costs related to import into the Republic of Armenia, if any.
Loan annual nominal interest rate
Armenian dram
17․0%
13.5%
US dollar
14․0%
11.0%
! In the case of financing through program resources, the loan is provided at the annual interest rate established by the Bank within the framework of the respective program.
Annual effective interest rate
Armenian dram
18.38 – 18.44%
15.08 – 20.87%
US dollar
14.93 – 14.97%
12․25 – 18․51%
In accordance with the RA Law “On Consumer Lending”, the annual effective percentage rate is calculated for loans of up to AMD 5,000,000 (including AMD 5,000,000).
Terms for changing the annual nominal interest rate
In case of misuse of the loan funds by the borrower, failure to comply with the requirements defined by the program as well as in case of false or unreliable information, the Bank has the right to unilaterally increase the loan interest rate. The Bank also has the right to demand full or partial early repayment of the loan.
Interest rate subsidy amount
8 percentage points
6 percentage points
! Subsidy period: up to 12 months
12-36 months
Grace period for principal repayment
0 – 12 months
Subsidy terms
- The subsidy is implemented until December 30, 2026 at the latest.
- Loan interest rate subsidy is terminated if:
the loan was used for an unintended purpose
the requirements set out in the Program were not met or a violation of the Program conditions was detected as a result of monitoring
Inaccuracies, inconsistencies, or falsifications were discovered in the documents submitted by the borrower.
- Loan interest rate subsidy may be terminated if:
there are overdue liabilities of the Borrower for the loan provided under this loan type for more than 90 days in total from the date of receipt of the loan under the Program
the loan agreement signed between the Bank and the Borrower was early terminated on the ground of a breach by the borrower.
- In cases where the borrower uses the loan for unintended purposes, as well as inaccuracies, discrepancies or forgeries are discovered in the submitted documents, the subsidy amount provided up to that point is subject to refund
- Applications to become a beneficiary of the program can be submitted until November 16, 2026.
- Each beneficiary can use the Program only once. In the event that it turns out that before the loan was provided, the beneficiary had a loan received within the framework of the Program at another bank or credit organization, the loan continues to operate at the Bank at the maximum annual interest rate applicable at that time within the framework of the Bank's "Commercial Loans" loan type according to the contractual term of the loan.
Requirements to the borrower
Credit history:
The total number of days of non-classification and/or overdue liabilities during the last 12 months should not exceed 30 days.
Absence of current overdue liabilities.
The age of the Borrower, who is an individual entrepreneur, is 18-65 years old.
Payment method
Annuity (equal monthly payment of principal and interest)
Differentiated (equal monthly payment of principal and monthly payment of interest)
Individual payment schedule depending on the specifics of the business
Payment method: per the customer's choice
Loan provision and service fee
Not applicable
Penalty for overdue principal amount
0.1% daily
Late payment interest penalty
0.13% daily
Loan early repayment penalty
Not applicable
Security measure
1.Real estate and/or
2.Guarantee/s:
3.In the case of clients who are legal entities, personal guarantees from the founders and beneficial owners of the business,
4.In the case of individual entrepreneurs, if the beneficial owner is a third party, a guarantee of the beneficial owner.
5.Movable property: in the event that real estate does not provide the necessary loan/collateral ratio, movable property may be used as additional collateral. Moreover, in the case of collateral of real estate and movable property, the share of movable property in the calculation of the total loan/collateral ratio cannot exceed 20%.
1.Real estate and/or
2.Guarantee/s:
In the case of clients who are legal entities, personal guarantees from the founders and beneficial owners of the business,
In the case of individual entrepreneurs, if the beneficial owner is a third party, a guarantee of the beneficial owner.
3.Movable property: in the event that real estate does not provide the necessary loan/collateral ratio, movable property may be used as additional collateral. Moreover, in the case of collateral of real estate and movable property, the share of movable property in the calculation of the total loan/collateral ratio cannot exceed 20%.
- Other security measures may also be provided by decision of the Credit Committee.
- In the case of a vehicle pledge, the production period cannot exceed:
for Russian-made cars: 5 years,
for cars manufactured in other countries: 10 years.
Loan/ Collateral 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 renewal of the insurance contract every year for the entire duration of the loan.
Insurance is provided by the customer.
Collateral valuation
The collateral is subject to valuation by an independent property valuation agency cooperating with the Bank and/or by a Bank employee, depending on the loan amount.
The assessment by a bank employee is carried out free of charge.
Claims against guarantors (if any)
An individual (18-65 years old) who:
has no current overdue credit obligations;
the total number of overdue days in the last year should not exceed 30 days;
at least one of the guarantors must be a real estate owner or have a registered salary.
OTHER TERMS
Deadline for making a decision on granting a loan
After submitting all the required documents and completing state registration of the pledge right, up to 5 business days
Deadline for notification of the
Up to 1 business day after the decision is made
Loan term
After submitting all required documents and completing state registration of the pledge right, up to 1 business day
Deadline for notification
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 loans provided for under this loan type are provided within the framework of the “Targeted State Support Measure for Ensuring Diversification of Supply Chains for Textile Sector Organizations” (Appendix 4) approved by the RA Government’s Resolution No. 355-L dated March 26, 2025 “On Approval of Targeted Programs for Economic Modernization” (hereinafter referred to as the Program). In the event of a change in the terms of the Program, the terms of the RA Government’s Resolution currently in effect shall apply.
** As of the date of application submission:
During the previous 365 days, at least 80% of the turnover presented in the calculations for each reporting period must have been formed by the following types of economic activity from the Classifiers of Types of Economic Activity approved by Order No. 874-N of the Minister of Economy of the Republic of Armenia of September 19, 2013:
· "Manufacture of textile products" (C(SI)13)
· "Clothing Manufacturing" (C(SI)14)
· as well as other types of economic activities defined by the decision of the Government of the Republic of Armenia.
During the previous 365 days, the Republic of Armenia must have exported goods originating in the Republic of Armenia from the following types of economic activity defined by the classifiers of types of economic activity to the EAEU member states or other countries that are not EAEU member states under the “Export” customs procedure:
· "Manufacture of textile products" (C(SI)13)
· "Clothing Manufacturing" (C(SI)14)
· as well as other types of economic activities defined by the decision of the Government of the Republic of Armenia.
During the previous 365 days, there must not have been a decision to levy tax liabilities of AMD 1,000,000 or more on income controlled by the tax authority, and there must not be any overdue liabilities on income controlled by the tax authority as of the day preceding the date of submission of the application.
*** Raw materials can include goods, materials and auxiliary resources, work in progress and finished products (inventories), in accordance with the RA Government Resolution No. 235-N of March 11, 2010.
**** In case of loans exceeding 400,000,000 AMD or 1,000,000 USD, the Bank has the right to review the annual interest rate of the loan every 6 months after the date of signing the loan agreement, which comes into force 30 days after notifying the Borrower. In case the Borrower refuses to review the annual interest rate, the latter has the right to make a full early repayment of the loan.
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.