Business loans

ATTENTION! PLEASE NOTE THAT THIS LOAN HAS A HIGH ACTUAL INTEREST RATE! THEREFORE, FIRST CONSIDER OTHER SIMILAR SERVICES AVAILABLE IN THE MARKET AND EVALUATE YOUR POSSIBILITIES OF PAYING OFF THE LOAN

If you want to develop and expand your business, you can use our commercial loans in timely manner and with flexible terms and conditions.
Commercial loans are provided to entities and individual entrepreneurs, who have at least 3 consecutive months experience in entrepreneurial activities. General Terms of Business Loans

Loan amount From AMD 300,000 to AMD 80 million
Loan term 1 – 84 months
Annual nominal interest rate 9% – 20%*
Annual actual interest rate 9,4% – 35%
Loan / collateral ratio 50% – 80% of the pledged property value
Loan provision fee* 0% – 2%
Other fees Collateral appraisal, re-appraisal, notary registration, state registration and formulation, insurance and other related expenses.
Collateral Real estate, vehicles, equipment, revolving funds, guarantees and other
Application Fee AMD 5,000
Penalties** For overdue interest – 0,1% per day
For overdue interest – 0,1% per day
The term of the loan application review and decision-making*** Up to 3 working days
Processing of collateral and provision of loan Up to 5 working days

*The fees of foreign currency loans charged in AMD by the average exchange rate of currency markets on the day of contract signing.
**Also interest rate will be calculated in respect of the overdue amount to the tune of banking estimated percent.
***In case the borrower submits the necessary documents on time.
NO EARLY REPAYMENT FEE IS APPLICABLE.

Repayments of the loan and interests

Loan repayment schedule Equal monthly installments or equal principal amount graphics.
Grace periods of principal amount based on seasonality of business.
Premature repayment Premature repayment opportunity without fines and penalties
Interest calculation Annual nominal interest rate calculated on the outstanding loan balance for a 365-day year
Prepayment/ Loan amount From 0%

Third party service fees

Property appraisal costs AMD 15000-35000
Property insurance fee 0.16-1.5% of loan amount
Joint certificate AMD 10000
Collateral notarization fee AMD 12000
Collateral registration state fee AMD 26000

Regardless of the rates set forth in these Terms, the fees for third-party services may vary by third parties.

Criteria of the loan disbursement approval or denial:

Criteria for a positive decision on loan granting

  • Steady income
  • Appropriate collateral, guarantees
  • Positive credit history
  • Long term work experience

Criteria for a negative decision on loan granting

  • Insufficient income to pay the credit off
  • Customer’s income source can’t be verified or presented income is undocumented
  • Bad credit history, with number of overdue days and classifications or customer’s loan history is overloaded

Attention!

  • In order to search, compare and choose the most effective option for the services offered to individuals, you can refer to the following link: https://www.fininfo.am/finhelper/index.php?type=agricultural
  • You have the right to communicate with the financial company whichever way you prefer: through postal communication or email. the electronic submission of the information is the most convenient option. it is available 27/7, it excludes the risks of losing paper based information and ensures confidentiality.
  • The company can require additional documents or other information from the customer based on the “know your customer” principle, defined by the RA law “on combating money laundering and terrorism financing”.
  • If you get a loan in US dollars, changes in the foreign exchange rate may affect loan repayments.

List of required documents
  1. Charter(re-registered version)
  2. State registration certificate (with insets)
  3. Tax code
  4. Reference from registry about founders  and director (LLC)
  5. Copy of passports and social cards (director, founders)
  6. Balance sheet, financial statements
  7. References  from  tax authorities and social security service
  8. Decision of general assembly of the company to apply for the machine or equipment leasing, loan or  pledging.
  9.  Copy of passport and social card of director
  10. License (for the licensed activity),
  11. Reference  of debts of organization(including credits, other loans)
  12. List of core funds of company
  13. Income and expenses (monthly), product range, cost prices and selling prices
  14. Other documents (if required)

Collateral

  1. Ownership certificates, bases for ownership amendment (Sale agreement , Decision of the executive body)
  2. Passport copies of the property owners
  3. Certificate about absence of restrictions of the collateral
  4. Report on appraisal of real estate
  5. If married – marriage certificate and spouse’s copies of  passport and social card.

Guarantee

  1. Copies of passport and social card of guarantees (for individuals) orC harter, State registration certificate, passport and social card of director (for entities)
  2. Documents on guarantee’s income base
  3. Documents on guarantee’s ownership base

WARNING
  • IF YOU FAIL TO REPAY THE LOAN AND THE INTEREST IN TIME, THE PLEDGED PROPERTY MAY BE REPOSSESSED. IF THE VALUE OF THE COLLATERAL IS NOT SUFFICIENT TO COLLECT THE DEBT, OTHER ASSETS MAY BE REPOSSESSED TOO.
  • IF THE BORROWER DOES NOT PAY THE INTEREST AND LOAN PRINCIPAL AMOUNTS IN TIME, INFORMATION ABOUT CREDIT HISTORY WILL BE SUBMITTED TO THE CENTRAL BANK OF ARMENIA CREDIT REGISTER AND ACRA CREDIT REPORTING CJSC.

ATTENTION

ATTENTION: LOAN INTEREST RATES ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE. AND THE ACTUAL ANNUAL INTEREST RATE SHOWS HOW MUCH THE LOAN WILL COST YOU IF YOU MAKE THE INTEREST PAYMENTS AND ALL MANDATORY PAYMENTS UNDER THE LOAN PROVISION AND SERVICING LINE WITHIN THE SPECIFIED PERIODS AND MEASURES. THE FORMULA FOR CALCULATING THE ANNUAL ACTUAL INTEREST RATE IS AVAILABLE ON THE WEBSITE

INTEREST RATE CALCULATION EXAMPLE (PDF)

“Finance for everyone”  www.abcfinance.am web page’s “Financial helper”  system

Updated: 03/01/2024