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.

Բիզնես վարկեր

Business loans

LOAN "FOR SMALL AND MEDIUM ENTERPRISES"


MAXIMUM AMOUNT

EUR 500,000
USD 500,000
AMD 200,000,000

ANNUAL INTEREST RATE

from 7% for EUR
from 10% for USD
from 14% for AMD

TERM

up to 120 months


Business Loan "For Small and Medium Enterprises"

Intended Purpose

The loan is intended for business purposes, as well as for refinancing loans held at other banks.

Borrower Requirements

- Individual entrepreneur or legal entity

- Business operation period — at least 12 months

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

Loan Currency

  • AMD
  • USD
  • EUR

Annual Interest Rate Starting From

Loan Currency

Annual Interest Rate Starting From

Maximum Loan Term

AMD

14%

84 months

USD

10%

120 months

EUR

6.5%

60 months

Minimum Amount of the Loan

  • AMD 5,000,000
  • USD 10,000
  • EUR 10,000

Maximum Amount of the Loan

  • AMD 200,000,000
  • USD 500,000
  • EUR 500,000, in accordance with the Bank's Credit Policy

Loan Term

  • For working capital purposes — up to 48 months
  • For fixed asset acquisition and capital investments — up to 84 months for AMD, 120 months for USD, and 60 months for EUR

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. In the event of a loan extension or changes to the loan terms, the Bank reserves the right to revise the loan interest rate. For loans issued in foreign currency, changes in the exchange rate may affect loan repayments.

Collateral

Real estate or movable property, including vehicles, inventory, goods and materials, working capital, fixed assets, etc.

Attention: Failure to make timely payments of interest and principal amounts may result in the pledged property being seized and the borrower's information being registered in the credit registry. If the loan obligations are not fulfilled and the collateral is insufficient to cover the borrower's obligations, repayment may be enforced against the borrower's other property.

Loan-to-Collateral Value Ratio

  • Maximum 70%, in accordance with the Bank's Credit Policy.
  • When real estate and movable property, including machinery, equipment, and working capital, are accepted together as a single combined collateral, the loan amount may not exceed the market value of the pledged real estate.

Loan Disbursement Procedure

The loan is transferred to the customer's bank account in a single lump sum.

Loan Repayment Procedure

  • Principal: equal-installment, annuity, or customized schedule — including the possibility of a grace period of up to 6 months — depending on the specifics of the business.
  • Interest: 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.

Fee

0%

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 loan disbursement through the 36th month of the loan term inclusive, a payment is made that exceeds triple 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 on the principal amount of the refinanced loan.

Loan Application Review Fee

In accordance with the Bank's applicable tariffs.

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