Terms
tariffs
Resident legal entity and sole proprietor of the Republic of Armenia carrying out micro, small and medium size business activities
Refinancing of business loans, credit lines
Refinancing of business loans
AMD
USD
15,000,000–400,000,000 AMD
40,000–1,000,000 USD
Up to 40% of the remaining balance of the refinanced loan.
For the first 3 years — the weighted average nominal interest rate of loans/credit lines transferred from another financial institution minus 2%, with a minimum of 11.50%, thereafter 13.50% for the remaining term.
For USD loans — first 3 years, weighted average minus 2%, minimum 8%, thereafter 9.50% for the remaining term.
First 3 years — weighted average minus 2%, minimum 12.00%, thereafter 14.00% for the remaining term.
For USD — first 3 years, weighted average minus 2%, minimum 8.50%, thereafter 10% for the remaining term.
0.5%
Loans 11.91–24%
Credit lines: 11.91–24%
Loans: 8.15–24%
Credit lines: 8.15–24%
37–120 months
37–120 months
Regardless of the loan amount, the Bank provides the loan without analyzing the borrower’s financial condition or visiting the business premises if the refinanced loan(s) have been serviced in other RA banks/financial institutions for at least 12 months (weighted average for multiple loans) with all scheduled payments made over the past 12 months.
Deviations from the above conditions require financial analysis before granting the loan.
Credit history:
No classification defaults and/or overdue days exceeding 30 in the last 12 months.
No current overdue obligations.
Individual entrepreneurs: age 18–65.
For loans
Annuity / equal monthly payment of principal and interest
Differentiated / equal monthly principal payments + monthly interest payments
Individual repayment schedule based on business specifics
For credit lines:
Monthly interest payments
Principal at the end of term or according to an individual repayment schedule
Repayment method is chosen by the client.
Moreover, the monthly repayment amount for the newly granted loan (including any additional loan amount) must not exceed 115% of the average monthly repayments made on the refinanced loan line over the last 12 months.
none
0.1% per day
0.13% per day
5.5% of the repaid amount
Reduction: 5.5% of the reduced amount
Termination: 5.5% of the credit line limit
Real estate
Guarantees
For legal entity clients: personal guarantees from founders and ultimate beneficiaries.
For individual entrepreneurs: guarantee from ultimate beneficiary if a third party.
Movable property: if real estate does not satisfy the required loan-to-collateral ratio, movable property may be used, limited to 20% of the total collateral value.
Additional collateral may be required by the Credit Committee decision.
Vehicle collateral:
Russian-made vehicles: max 5 years old
Other countries’ vehicles: max 10 years old
Real estate: up to 70% of market value
Movable property: up to 50% of market value
For additional loans: if LTV ratio is not sufficient, the additional loan is max 10,000,000 AMD or 25,000 USD.
Collateral (real or movable property) is not insured, except vehicles.
Vehicles: mandatory “CASCO” insurance covering physical damage and theft for the Bank, at least for the loan amount, renewed annually by the borrower.
Conducted by an independent appraisal agency cooperating with the Bank or by a Bank employee (free of charge).
Covered by the Bank
Individuals 18–65 years old
√ No current overdue obligations
√ Overdue days in the last 12 months ≤ 30
√ At least one guarantor must own real estate or have a registered salary