Up to the maximum amount of the Borrower’s risk’s permitted normative limit set by the RA CB.
Note: foreign currency rate changes may influence the repayments of the loan
Loan Currency
AMD, USD, EUR
Loan Term
1-36 months for acquiring fixed assets
1 - 60 months for acquiring fixed assets and realizing other investments
Crediting fees*
Fee for opening an account (if the customer does not have an account at the Bank) - 5.000 AMD Additional lump-sum fee for servicing the account (is charged during the loan provision) 0.5% from loan amount, but not less than 100 000 AMD
Annual nominal interest rate
AMD
16-21%
USD, EUR
12-18%
Attention: The nominal interest rate of this loan may be changed by the bank (decrease or increase).
The interest rate change is set in the Agreement signed between the Bank and the Customer. If the customer disagrees with the rate changes the Bank receives the right to unilaterally cancel the Agreement and demand to return the full amount of the provided loan in addition pay the calculated interests and penalties.
Interest Calculation
Is calculated based on 360-day or 365-day per annum on the decreasing balance of the loan
Borrower’s Description
RA resident legal entity or sole entrepreneur
Crediting industries
Trade,
Service,
Production
The following sectors are prohibited for financing: Production or trade of weapons and munitions, casinos, bookmaker offices, foreign currency exchanges, investments in securities and other sectors that contradict the RA legislation or are limited by the Bank’s lending policy and / or by the requirements of the Bank’s international agreements.
Purpose of the Loan
To increase current assets ·Acquisition of goods and servicescustoms clearance for the imported goods Investments ·Acquisition, renovation and modernization of equipments ·Acquisition and renovation of means of transportation Acquisition and renovation of trade centers Other purposes associated with the business development • Disbursement of the payable • Realization of investment projects Other purposes that do not contradict RA Legislation and agreements signed with borrower organizations
Criterions for a positive loan provision decision
A positive credit score according to the standards stipulated by the Bank ·A business operating for at least 3 months with profit ·Positive or neutralcredit history
work transparency
satisfactory income
private property
additional pledge and /or guarantee existence
Criterions for a negative loan provision decision
insufficient income to pay off the credit
untrustworthy information provided by the customer
negative credit history
customer’s income from a risky sector
Pledge
• fixed assets (fixed, movable) • guarantees ·Goods in turnover ·Property to be purchased ·Financial means ·Precious metals (items)
The maximum loan/pledge value correlation ratio is 80%.
Property Insurance
According to the Bank’s decision
Guarantee
Guarantee from colleagues, family members, other natural persons or legal entities
Allocation Mode
Non-cash on the Customer’s Bank account
Fees for altering the loan conditions and pledge
50.000 AMD
Repayment Mode
·Monthly equal payments of principle amount and interests ·Individual repayment plan (taking into account the seasonal factors) ·Privileged time period to pay off the interests for up to 3 months
Prepayment Penalty
None
Decision to provide the loan and informing the customer
within 10 working days from the days of receiving the required documents
Transaction Time Period
Within 7-10 working days after the approval to provide the loan
Loan provision decision ratification
30 days
Repayment of Overdue Obligations
Starting from the default day 0.1 percent of the unpaid amount will be calculated for each overdue day as a penalty. Introduction: In case of not repaying the loan interest and the main amount on time the pledged property may be confiscated and the information about the borrower will be entered in the loan registry. If the borrower does not perform his obligations and repays his obligations with the pledge which is not sufficient there is a possibility of repaying the obligations through additional property.
