Modernization of production, attraction of long-term capital investments and organization of production processes, financing of raw material collection and marketing of products and services, as well as financing of circulating capital.

• Loan amount and currency: AMD 300,000 – 50,000,000 or 500 – 150,000 USD
• Term: 12 – 60 months
• Annual interest rate: 12 – 18% (AMD) or 9 – 12% (USD)
• Effective interest rate: 13.44-20.79 % (AMD) or 9.37-12.62 % (USD)
• Loan interest is calculated on the outstanding loan balance;
• Repayment schedule: flexible, not less than twice, with up to 12 months grace period for principle repayment;
• Loan security: movable and immovable property and/or guarantee
• Assessment of a customer’s creditability and its credit history serve as a basis for issuing a decision on satisfaction/rejection of loan application.
•  Instances, where the borrower fails to repay the loan principle and interest in due time, information about the client, will be recorded in the Credit Registry.
• Where the borrower fails to fulfill its obligations, and if the collateral does not cover the loan obligations, such obligations may be redeemed at the expense of other property and/or funds of the borrower.

Calculation of loan interest rate

Loan interests are calculated on the actual loan balance, considering 365 days in the year. The nominal interest rate of the loan remains unchanged during the entire effective period of the loan.

If the two-fold of the banking rate (settlement banking interest rate established by the CBA) is less than the interest rate defined by the Company, the two-fold banking rate shall be defined as a maximum interest rate.

Example of calculation of loan interest amounts

A simple example of calculation of a loan interest rate: (Loan amount* interest rate)/ number of months (or days)

Thus, when providing a loan of AMD 2,000,000, at 16% annual interest rate and 18 months of the repayment period, the average monthly interest due to payment shall be AMD 2,000,000*0.16/18= AMD 17,778.  It should be mentioned that the actual amount of monthly interests would depend on the loan repayment schedule, yet not exceed the average amount specified above.

Other fees

• Expenses incurred by the borrower in relation with loan provision may include:
• Notarization, if the collateral is an immovable property: AMD 3,000 – 15,000
• State registration of the lien, if the collateral is an immovable property or a transport vehicle: AMD 10,000 – 35,000
• State registration of lien of the transport vehicle: AMD 3,000
• Commission fee, equal to 1%-1.5% of the loan amount, not exceeding 300000AMD

Penalties

• In case of delays of loan interests and/or principle payment, a fine is imposed  at the rate of 0.1% on the overdue amount  (overdue loan amount and overdue interest amount), for each day of delay

• At 1% of the amount repaid during no later than six months since the date of signing of the loan agreement.

Objects of collateral may be:   

Any divisible and indivisible property accepted by the Company and in circulation, which may be subject to confiscation in cases permitted by the RA legislation. The following items may serve as collateral:

• Immovable property (industrial premises, lands, buildings, structures, private houses, apartments and other immovable property)
• Transport vehicles
• Mechanisms (machinery) and equipment
• Various inventory holdings
• Government securities
• Other property

The maximum loan/collateral value ratio may not exceed 80%. Appraisal and/or insurance of the object of collateral by a specialized organization are not mandatory.

Deadlines for the loan approval and provision

The approval for the loan application, and provision of the relevant information to the applicant as well as the loan provision to the borrower is handled maximum within 20 days.

• 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”.
• www.fininfo.am , “ATTENTION: “YOUR FINANCIAL INFORMATION DIRECTORY” IS AND ELECTRONIC SYSTEM, WHICH MAKES IT EASIER TO SEARCH FOR AND COMPARE SERVICES FOR PHYSICAL ENTITIES AND FACILITATES THE CHOICE OF THE MOST EFFICIENT OPTION FOR YOU”.
• LOAN INTEREST RATES ARE BEING CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ANNUAL REAL INTEREST RATE SHOWS HOW MUCH WILL THE LOAN COST FOR YOU IF YOU COVER THE INTEREST RATES AND ALL THE OBLIGATORY FEES RELATING TO THE LOAN PROVISION AND SERVICE IN A TIMELY MANNER AND BY THE AMOUNT DEFINED.
• IN CASE OF FAILURE TO FULFILL YOUR OBLIGATIONS FULLY OR PARTIALLY, THE CREDITOR SENDS THE DATA TO THE CREDIT REGISTRY AFTER 3 WORKING DAYS, WHERE YOUR CREDIT HISTORY IS FORMED. YOU HAVE THE RIGHT TO GET YOUR CREDIT HISTORY FROM THE CREDIT REGISTRY FREE OF CHARGE ONCE A YEAR.ATTENTION: NEGATIVE CREDIT HISTORY MAY AFFECT YOUR FUTURE ATTEMPTS TO GET A LOAN!
• IN THE EVENT OF FAILURE TO FULFILL OR IMPROPER FULFILLMENT OF OBLIGATIONS, ASSUMED BY THE BORROWER, THE COMPANY TAKES RELEVANT MEASURES TO CONFISCATE AND REALIZE THE COLLATERAL IN THE MANNER STIPULATED BY THE RA LEGISLATION. IF THE AMOUNT COLLECTED FROM THE REALIZATION OF THE PLEDGED PROPERTY IS INSUFFICIENT TO COVER THE COMPANY’S CLAIMS, THE COMPANY SHALL BE ENTITLED TO COMPENSATION FROM OTHER PROPERTY AND/OR FUNDS OF THE BORROWER.

FOR GUARANTORS

• GUARANTOR BEARS THE LIABILITY OF REPAYING THE LOAN. IT MEANS THAT IN CASE THE LOANER PERFORMS HI/HER OBLIGATIONS INCOMPLETELY, OR DOESN’T PERFORM THEM AT ALL, YOU WILL PAY INSTEAD.  THIS WILL AFFECT YOUR CREDIT HISTORY AND YOU MAY BE DEPRIVED OF YOUR OWN PROPERTY.
• YOU WILL BE PROVIDED WITH AN EXAMPLE OF LOAN AND GUARANTEE CONTRACTS, AND A REPAYMENT SCHEDULE.
• THE COMMUNICATION WILL BE CARRIED OUT BY YOUR PREFERRED METHOD.
• YOU WILL BE NOTIFIED ABOUT THE CONTRACT TERM CHANGES 7 DAYS BEFORE.
• IN CASE OF DELAY IN LOAN REPAYMENT, AT THE LATEST ONE DAY LATER YOU WILL BE NOTIFIED ABOUT IT.

THE GUARANTOR HAS THE RIGHT

• TO REQUIRE INFORMATION ON THE OUTSTANDING AMOUNT OF THE LOAN, ANY TIME.
• TO REQUIRE FROM THE LOANER THE COMPENSATE THE INTEREST PAID TO THE CREDITOR FOR THE LOAN, AS WELL AS OTHER LOSSES INCURRED INSTEAD OF THE LOANER.

Documents required for loan provision: 

For legal entities

• Loan application
• Decision on appointment of the director (excerpt from, or a copy of, the order): if the director does not act as a party of the transaction, a power of attorney of an authorized person issued by the director or other competent authority
• A copy of the ID document of the director or the authorized person
• State registration certificate (copy), with addendum thereof, and the TIN (taxpayer’s identification number) code
• Charter (Bylaws) and Articles of Incorporation (copy)
• Financial statements for the last financial year and the last quarter of the current year
• Statements on debts from tax and social welfare (pension) authorities
• Decision of the applicant’s competent authority on applying for loan and pledging the applicant’s (or other persons’) property (rights to property) to secure the loan
• Ownership certificates of pledged property and grounds  for ownership (copy); if the collateral is an equipment(s), its passport; if vehicle, its registration certificate (copy)
• If necessary, the Company may request additional documents

For physical entities (individuals)

• Loan application
• ID document
• Ownership certificates of pledged property and grounds  for ownership (copy); if the collateral is an equipment(s), its passport; if vehicle, its registration certificate (copy)
• Information about incomes (salary or other incomes)
• If necessary, the Company may request additional documents