Leasing

Leasing gives you the opportunity to upgrade technologies and ensure the progress of your business.
The main advantage of leasing is that  collateral is not required.
The organization provides:

  • Vehicle leasing
  • Agricultural equipment leasing
  • Industrial equipment leasing
  • Food processing equipment leasing
  • Other

 

Agroleasing provides production and agricultural equipment leasing to legal entities, which have at least 3 month consecutive months experience in entrepreneurial activities.

Main Terms of Leasing

The cost of leasing object From AMD 300,000 to AMD 30 million (or equivalent foreign  currency)
Lease term 12 – 60 months
Annual nominal interest rate 9% – 18%
Advance payment 0% – 50%
Other expenses of lessee

Insurance etc.

Leasing provision fee: 1%

Collateral The lease object. Additional security might be required by the contract.
Leasing Application fee AMD 10,000

Penalties*

 

For overdue principal amount – 0,1% per day

For overdue interest amount – 0,1% per day

The term of the lease application review and decision-making** Up to 5 working days

 

*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.

Repayments of the leasing and interests

Lease repayment schedule Monthly in equal amounts. Based on seasonality and specifics of business opportunity to repay principal amount by a flexible schedule
Premature repayment In case of lease contract completion within first year, the lessee is obligated to pay interest amount till intended date set by schedule. After first year no fines and penalties for early repayment are applicable.
Interest calculation Annual nominal interest rate  calculated on the outstanding lease amount 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 lease  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 lease disbursement approval or denial:

Criteria for a positive decision on lease granting

 

  • Steady income
  • High liquidity of lease object
  • Positive credit history
  • Guarantees

Criteria for a negative decision on lease 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
  • Low liquidity f lease object

 

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 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. Information about required leasing object (supplier, technical requirements)
  15. Preliminary invoice f leasing object (if required)
  16. Other documents (if required)

 

Additonal Security

  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
  1. Report on appraisal of real estate
  2. 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) or

Charter, State registration certificate, passport and social card of director (for entities)

  1. Documents on guarantee’s income base
  2. 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

INTEREST RATE IS CALCULATED BASED ON THE NOMINAL INTEREST RATE, WHEREAS THE ANNUAL EFFECTIVE INTEREST RATE INDICATES HOW MUCH LOAN WOULD COST

INTEREST RATE CALCULATION EXAMPLE (PDF)

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

 

 

 

Updated: 09/11/2018