Agricultural loans (Rural Area Development)
Agricultural loans are provided to the farmers and gardeners in RA aimed for;
- Expansion of the agricultural economy,
- Establishing fruit orchards and making other investments in agriculture;
- Construction of greenhouses or refrigeration farms;
- Acquisition of agricultural equipment and machinery,
- Procurement of irrigation drip system;
- Increase cattle number.
For development of farm economy Company set flexible finance service with availability of seasonal repayments of principal amount.
|General Terms of Agricultural Loans
||Till USD 100.000 or equivalent AMD
||1 – 84 months
|Annual Nominal Interest Rate
||8 – 12%*
|Loan Disbursement Method
||Cash or non-cash
|loan / collateral ratio
||50% – 80% of the pledged property value
|Loan provision fee*
||Collateral appraisal, re-appraisal, notary registration, state registration and formulation, insurance and other related expenses.
||Real estate, vehicles, equipment, revolving funds, guarantees and other. Till 1.5 mln drams loans can be provided without collateral
|Loan / collateral ratio
||50-80% of the pledged property value
|Application Fee (Single time)
||AMD 5,000 fee
||For overdue main sum or/and interest – 0,1% per day.
|The term of the loan application review and decision-making***
||Up to 7 working days after receiving all necessary documents
* In case of non-purposeful use of the loan, the creditor may reconsider the nominal interest rate of the loan up to the twice of Central Bank interest settlement rate.
**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 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 opportunity without fines and penalties
||Annual nominal interest rate calculated on the outstanding loan balance for a 365-day year
|Prepayment/ Loan amount
|Third party service fees
|Property appraisal costs
|Property insurance fee
||0.16-1.5% of loan amount
|Collateral notarization fee
|Collateral registration state fee
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 case of receiving a USD loan, changes in foreign exchange rates may have an effect on loan repayments
- Copies of passport and social card of creditօr
- Reference from municipality about housekeeping
- Property documents, list of fixed assets
- Borrower's ownership documents, list of fixed assets
- Detailed description of loan spending directions
- Photos from the farm
- Certificate (if available)
- Income and expenses (monthly/ in some cases yearly), product range, cost prices and selling prices
- Other documents about income (if any)
- Ownership certificates, bases for ownership amendment (Sale agreement , Decision of the executive body)
- Passport copies of the property owners
- Certificate about absence of restrictions of the collateral
- Report on appraisal of real estate
- If married – marriage certificate and spouse’s copies of passport and social card.
- Copies of passport and social card of guarantees (for individuals) or
Charter, State registration certificate, passport and social card of director (for entities)
- Documents on guarantee’s income base
- Documents on guarantee’s ownership base
- 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.
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