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

BUSINESS LOAN "SIMPLIFIED"


MAXIMUM LOAN AMOUNT

USD 250,000
AMD 100,000,000

ANNUAL INTEREST RATE

from 12% for USD
from 15% for AMD

TERM

up to 120 months


BUSINESS LOAN "SIMPLIFIED"

Real-estate-secured business loan for working capital replenishment, capital investments, and refinancing

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 6 months

- Positive credit history, in accordance with the Bank's Credit Policy

Loan Currency

AMD

USD

Annual Nominal Interest Rate

15%

12%

Minimum and Maximum Loan Amount

5,000,000 – 100,000,000

15,000 – 250,000

Minimum and Maximum Loan Term

24 – 120 months

Attention: 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 loan extension or changes to the loan terms, the Bank has the right to revise the interest rate. For loans issued in foreign currency, changes in the exchange rate may affect loan repayments.

Collateral

Real estate

Attention: Failure to make timely payments of interest and principal may result in the pledged property being seized and the borrower's information being registered in the credit registry. If, in the event of failure to fulfill loan obligations, the collateral is insufficient to cover the borrower's loan obligations, repayment may be enforced against the borrower's other property.

Loan-to-Collateral Value Ratio

Maximum 60%, in accordance with the Bank's Credit Policy.

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
  • 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.

Service 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

From loan disbursement through month 36, inclusive, of the loan term: if a payment exceeding three times the principal amount due for that month under the repayment schedule is made, a penalty of 4% of the excess amount is charged. Starting from month 37 of the loan term, no early-repayment penalty applies.

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

Loan Application Review Fee

In accordance with the Bank's current tariffs.

Loan Cash-Withdrawal Fee

In accordance with the Bank's tariffs.

Notes

  • For loans up to and including AMD 50 million / USD 125 thousand, no financial analysis of the customer is required.
  • For loans exceeding AMD 50 million / USD 125 thousand, disbursement is carried out only on the basis of an EBRD analysis.
  • Regardless of the loan amount, a visit to the customer's business location and photographing of the business is mandatory.
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