Subsidized loans for the development of the textile industry

Loans for the development of the textile industry

Registered resident legal entity or individual entrepreneur in the Republic of Armenia

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.

0 – 12 months

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

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.

-  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 typeaccording to the contractual term of the loan..

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.

• 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

none

0.1%  daily

0.13%  daily

none

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 renewal of the insurance contract every year for the entire duration of the loan.

Insurance is provided by the customer.

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.

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.

After submitting all the required documents and completing state registration of the pledge right, up to 5 business days

Up to 1 business day after the decision is made

After submitting all required documents and completing state registration of the pledge right, up to 1 business day

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.