Terms
tariffs
Private entrepreneur resident of the Republic of Armenia, legal entity
Refinancing of loans, credit lines, overdrafts provided for business purposes in other banks (including financial institutions) of the Republic of Armenia, development of entrepreneurial activity
Loan, credit line
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.
Annual Nominal Loan Interest Rate (Fixed)**
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.
Annual Nominal Credit Line Interest Rate (Fixed)
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.
Interest Rate on Unused Portion of Credit Line
0.5%
37–120 months
37–120 months
Grace period for repayment of the principal amount
0–24 months, depending on business specifics.
Claims on the refinanced loan(s)
Regardless of the amount, the loan is provided without a financial and economic analysis of the Borrower, if:
the refinanced loan(s) has been serviced in other RA banks or financial institutions for at least 12 months (in case of more than 1 loan, with a weighted average term of 12 months), and the total number of overdue days for the latter during the previous 12 months does not exceed 5 days.
If necessary, the Bank may conduct a visit to the Borrower's place of business and/or request photographs from the place of business.
In the event of deviations from the above conditions, as well as in the event that there is a reasonable suspicion that the Borrower has serviced the refinanced loan(s) at the expense of receiving other credit funds, the loan is subject to provision based on an analysis of financial indicators.
Claims on the borrower (also participants/shareholders of a legal entity, beneficial owner)
Borrower age: 18-65 years. In the event that all participants/founders/shareholders of the Borrower, who is a legal entity, are over 18-65 years old, then at least 1 guarantor in the 18-65 age group is required.
Credit history:
No classification and/or the total number of days of overdue obligations during the last 12 months should not exceed 30 days. In case of overdue obligations of 15 days or more, the Bank may require an analysis.
No current overdue obligations.
In the case of a loan:
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.
In the case of a line of credit:
Monthly payment of interest, and the principal at the end of the term, or
Individual payment schedule depending on the specifics of the business.
Repayment method at the choice of the client and approved by the Bank.
Moreover, the monthly repayment amount for servicing the newly issued loan (including the amount of the additional loan) should not exceed 115% of the average monthly repayment amount made on the refinanced loan in the last 12 months (applicable when a financial and economic analysis is not carried out in the case of refinancing).
Not defined
Penalty for overdue principal
0.1% per day
Penalty for overdue interest
0.13% per day
Penalty for early repayment of the loan
5.5% of the repaid amount
Penalty for early reduction of the credit line agreement limit or termination of the agreement
Reduction: 5.5% of the reduced amount
Termination: 5.5% of the credit line limit
Collateral
1) Real estate,
2) Movable property (equipment, machinery and vehicles),
if real estate does not provide the necessary loan/collateral ratio, movable property may be the subject of additional collateral.
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%.
3) 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, the guarantee of the beneficial owner.
4) In the case of collateral of a vehicle, the production period cannot exceed:
For cars of Russian production - 5 years,
For cars of foreign production - 10 years.
5) Other security measures may also be provided by the decision of the Credit Committee.
Maximum Loan/Collateral Value
According to Appendix 1.
In case the loan-to-value ratio specified for the additional loan amount is not met, the additional loan may be structured as a separate loan, up to a maximum of AMD 10,000,000 or USD 25,000. The annual nominal interest rate of this additional loan is set in accordance with the above logic, not less than 14% in AMD and 12% in USD. Moreover, it is structured under the Main Agreement and is not included in the calculation of the loan-to-value ratio (LTV) specified in the Main Agreement.
1) The pledged real estate or movable property is not subject to insurance, except for motor vehicles (passenger vehicles, trucks).
2) 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 term of the loan.
3) In the event that the vehicle will be operated outside the borders of the Republic of Armenia, CASCO insurance of the CIS countries is required.
The insurance is carried out by the client.
Valuation of Collateral
1) The collateral is subject to evaluation by an independent property evaluation agency cooperating with the Bank.
2) In the event that an evaluation report of an independent property evaluation agency cooperating with the Bank is available for the pledged property, the statute of limitations of which does not exceed 2 years, a new evaluation of the property is not required. In this case, the Bank conducts a visit to observe and photograph the collateral. In addition, it is necessary to submit a property pledge agreement with another Bank/financial institution, which includes the value of the property pledge. Based on the data received, the property is also evaluated by a Bank employee.
Claims to Guarantors (if any)
An individual (18-65 years old) who:
has no current overdue liabilities
the total number of overdue days in the last year should not exceed 30 days
at least one of the guarantors must be the owner of the real estate or a registered employee.
OTHER TERMS
Loan decision making period
The decision on the loan application is made within 3 business days after submitting the required documents.
Deadline for notification of decision
Within 1 business day after the decision is made.
Deadline for loan disbursement
Within 1 business day after submitting all the required documents and performing the state registration of the pledge right.
Maximum validity period of the decision
30 business days
In addition, the Bank has the right to refuse to provide a loan if any of the conditions considered essential for making a positive decision on providing a loan have changed.
* The additional loan amount can be provided both together with the refinancing loan, through one loan, and as a separate loan, under the conditions set forth in this summary. The total amount of the loan provided for the purpose of refinancing and the additional loan cannot exceed the maximum loan amount limit set forth in this summary. At least 50% of the additional loan amount must be used in a non-cash manner. Moreover, targeted monitoring of the use of the additional loan amount is not carried out if the loan is provided without a financial and economic analysis, and in the case of loans with a financial and economic analysis, if the additional loan amount does not exceed 40,000,000 AMD.
** In the case of refinancing of foreign currency loans and credit lines, including those in different currencies (including AMD) at the same time, with a AMD loan: 13.5%.
In case of refinancing of loans and credit lines in drams, including simultaneously in different currencies (including foreign currency), with a dollar loan - 9.5%.
In case the weighted average nominal interest rate of loans and credit lines transferred from another financial institution exceeds 21.70%, the annual nominal interest rate for the first 3 years is set at 21.70%.
The balances of the transferred loans and the actual serviced terms are the basis for calculating the weighted average interest rate and term.
In the event that the interest rate of the transferred loan in the ACRA credit bureau is set at 0% and there is no justification for this, the interest rate of the transferred loan is set at 21.70%.
Loans of companies affiliated with the client, as well as consumer loans that were provided for business purposes and the balance is greater than or equal to 5 million drams, are also subject to refinancing. The refinanced loan/loans transferred to the Bank may be serviced by more than one financial institution.
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.