Business loans

If you want to develop and expand your business, you can use our commercial loans in timely manner and without any extra charge.
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 30 million
Loan term 1 – 60 months
Annual nominal interest rate 12%-22%*
Loan disbursement method Cash or non-cash
Loan / collateral ratio 50%-80% of the pledged property value
Loan provision fee* 0.5%
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.
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

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

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: 21/10/2018