Conditions to Provide a Credit Line |
| Minimum Loan Amount | 6.000.000 AMD |
| 15.000 USD |
| 10.000 EUR |
| Maximum Loan Amount | Up to the maximum amount of the Borrower’s risk’s permitted normative limit set by the RA CB. |
| Loan Currency | AMD, USD, EUR |
| Loan Term | 1-36 months |
| Crediting fees | Fee for opening an account, Commission for cash withdrawal *
-According to the BANK ACCOUNT SERVICE tariffs
Additional lump-sum fee for servicing the account (is charged during the loan provision)
-0.75% from loan amount, but not less than 125 000 AMD |
| *The lump sum fee for servicing foreign currency loans account is charged in AMD and is calculated based on the exchange rate set by the CBA as of the date the loan was provided. |
| Annual nominal interest rate | AMD | 18-23% |
| USD, EUR | 14-20% |
| 1-3% annual interest may be calculated for the unused credit line. |
| Non-interest days | Is not stipulated |
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 | 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 services
· customs 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 neutral credit 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 the principle shareholders/participants and related parties, 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 | · principle amount payment at the end of the period
· equal payments of the principle amount at the final 3-12 months of the loan maturity
· Individual repayment plan for per each tranche disbursed |
| 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 0.2 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. |
Introduction:
• Loans secured with financial means (e.g. deposits) are provided with the following interests: pledged deposit’s interest rate plus 5% per annum, but not less than
In case of USD loan amount – 12%
In case of EURO loan amount – 12%
In case of AMD loan amount- 15% |
