Agricultural 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

Agricultural loans are provided to the farmers and gardeners in RA aimed at gardening and cropping.
For development of farm economy Company set flexible finance service with availability of seasonal repayments of principal amount.

General Terms of Agricultural Loans
Loan Amount From AMD 300,000 to AMD 40 million or USD equivalent
Loan Term 1 – 840 months
Annual Nominal Interest Rate 12%-22%*
Annual Actual Interest Rate 12,5% – 28%
loan / collateral ratio 50% – 80% of the pledged property value
Loan provision fee* 0.8%-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
Loan / collateral ratio 50-80% of the pledged property value
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.

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. Copies of passport and social card of creditօr
  2. Reference from municipality about housekeeping
  3. Property documents, list of fixed assets
  4. Borrower's ownership documents, list of fixed assets
  5. Detailed description of loan spending directions
  6. Photos from the farm
  7. Certificate (if available)
  8. Income and expenses (monthly/ in some cases yearly), product range, cost prices and selling prices
  9. Other documents about income (if any)

 

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
  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

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
Updated: 10/01/2024