Favorable lending conditions create wider business development opportunities for the small and medium-sized enterprises and private entrepreneurs. We offer specially designed credit programs for a particular group of customers based on market-specific business studies. This kind of approach ensures an active development for the SME and fulfils the customers’ expectations.

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Business loans

LOAN "BUSINESS MORTGAGE"


MAXIMUM AMOUNT

USD 500,000
AMD 200,000,000

ANNUAL INTEREST RATE

from 10.5% for USD
from 14.9% for AMD

TERM

up to 240 months


Business Mortgage

Intended Purpose

A loan provided for the acquisition and development of premises intended for public, industrial, commercial, and other business activities.

Borrower Requirements

- Individual entrepreneur or legal entity

- Business operating period — at least 12 months

- No negative credit history, in accordance with the Bank's Credit Policy

Loan Currency

AMD

USD

Maximum Loan Amount

200,000,000

500,000

Minimum Annual Interest Rate

14.9%

10.5%

Minimum Annual Interest Rate in the Absence of a Down Payment

Interest rate set under the loan facility

+1%

Maximum Loan Term

180 months

240 months

Minimum Down Payment

30%

0% + additional collateral, commercial or residential real estate, valued at twice the market value of the required minimum down payment

Loan-to-Collateral Value Ratio

Up to 70%, in accordance with the Bank's Credit Policy.

Collateral

Real estate, in accordance with the Bank's Credit Policy

The loan interest rate is calculated on the declining balance of the loan. The Bank does not envisage changing the nominal interest rate during the term of the loan agreement, provided the borrower does not violate the conditions set out in the agreement. For loans issued in foreign currency, changes in the exchange rate may affect loan repayments.

Loan Disbursement Procedure

The loan is disbursed in non-cash form.

Loan Repayment Procedure

  • Option of an equal-installment, annuity, or customized repayment schedule
  • Option of a 6-month grace period
  • Interest is repaid monthly.

Repayment Order

Overdue obligations shall be repaid in the following order: accounts receivable, state duty, arbitration fee, court costs, penalty, interest, and loan principal.

Penalties

In the event of two or more consecutive business days of delay in loan and interest payments, the borrower will be charged a monthly penalty equal to 2% of the overdue amount.

Early Repayment Penalty

If, from disbursement through the 36th month of the loan term inclusive, a payment is made that exceeds three times the principal amount due for that month under the repayment schedule, a penalty of 4% of the excess amount will be charged. No early repayment penalty applies from the 37th month of the loan term onward.

In the case of refinancing: a 5% penalty applies to the principal balance of the refinanced loan.

Attention: Failure to make timely payments of interest and principal may result in the seizure of the pledged property, and the borrower's information may be registered in the credit registry. If the borrower fails to fulfill their loan obligations and the obligations are settled through the collateral, and the collateral proves insufficient to cover the borrower's loan obligations, repayment may be enforced against the borrower's other property.

Loan Application Review Fee

As per the Bank's applicable tariffs

Special Condition

If a loan disbursed in USD is serviced for 12 months without delinquency or restructuring, the interest rate will be reduced by 0.5% each year from the initial rate, down to a minimum of 8.5%.

YOU HAVE THE RIGHT TO COMMUNICATE WITH THE BANK IN YOUR PREFERRED WAY: BY POSTAL OR ELECTRONIC MEANS. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT. IT IS AVAILABLE 24/7, FREE FROM THE RISK OF LOSS OF PAPER INFORMATION AND ENSURES CONFIDENTIALITY.

ACCOUNT STATEMENTS ARE PROVIDED FOR FREE.

Certificates and information regarding accounts (regardless of the number of accounts) are provided in Armenian, Russian, and English:

AMD 2,000 if the customer has been served by the Bank for 6 months or more.

AMD 5,000 if the customer:

a) has been served by the Bank for less than 6 months; or
b) has not been a customer of the Bank.

Duplicates are issued at the same rates.

The loan is provided at the Bank's Yerevan branches: "Byron", "Tiv 47", "Kentron", "Komitas", "Malatiya", and "Tashir Kentron", as well as at all branches located in the regions.

ATTENTION: In case of non-fulfillment or improper fulfillment of your obligations, the creditor will, after 1 business day (within a maximum period of three business days), submit this information to the credit bureau, where your credit history is formed. You have the right to obtain your credit history from the credit bureau free of charge once a year.

ATTENTION: A negative credit history may prevent you from obtaining credit in the future.

For the purposes of customer due diligence as defined by the Law of the Republic of Armenia "On Combating Money Laundering and Terrorism Financing", it may, based on the "Know Your Customer" ("Know your customer") principle, request additional documents or other information.

Under the Foreign Account Tax Compliance Act (FATCA) and the agreement concluded with the United States, the Bank may, in order to determine whether you are a U.S. taxpayer, carry out additional collection of information.

ATTENTION: You can find detailed information on the formation and use of your credit history, as well as the steps and requirements aimed at improving your credit history, by following the LINK .

Information Center: +374 10 59 55 55



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Updated: 10/08/18 17:14