Green loans

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Main Conditions Terms & Conditions Additional documents

AMD

USD

Fixed interest rate

Floating interest rate

Loan amount

For loans with a fixed interest rate 5,000,001- 2,000,000,000 AMD
For loans with a floating interest rate 5,000,001- 2,000,000,000 AM

For loans with a fixed interest rate 10,000-1,000,000 USD
For loans with a floating interest rate 10,000-1,000,000 USD

ATTENTION: CHANGES IN FOREIGN EXCHANGE RATE MAY HAVE IMPACT ON LOAN REPAYMENTS

Maturity term

1-120 months

Annual nominal interest rate

For loans with a fixed interest rate: starting from 9%
For loans with a floating interest rate: unchanged for the first three years starting from 9%, then floating

For loans with a fixed interest rate: starting from 8%
For loans with a floating interest rate: unchanged for the first three years starting from 8%, then floating

Additional one-time account service fee

0-3% of loan amount

Account opening fee (if the customer does not have an account in the Bank)

According to the “Bank account service tariffs”

Fee for loan amount withdrawal from the account

According to the “Bank account service tariffs”

Early loan repayment penalty (in case stipulated by the agreement)

In case of early repayment of the loan, the Bank has the right to require from the customer to pay a penalty in the amount of up to 5% of the early repaid amount.

Overdue liability repayment

For each overdue day, the Bank has the right to calculate a penalty in the amount of 0.13% of the outstanding amount starting from the first day of delay.

Way of disbursement

Non-cash (through the customer’s account opened in the Bank)

Repayment

Equal monthly payments of principal and intere
Individual repayment schedule (taking into account seasonal factors)
Grace period - up to 12 months with interest payment only

Security/collateral

Real estate
Fixed assets
Vehicles
Goods in circulation
Receivable rights
Warranty, guarantee
Cash funds
Precious metals, valuables
Shares
Other property

LTV ratio

75%-ը of liquidation value of the collateral

Insurance

The Bank may require

the pledged property insurance in the amount of the loan balance or the market value of the property and/or
insurance of other risks

Loan purpose

Commercial and industrial investments aimed at energy saving
Investments aimed at renewable energy sources
Energy saving investments for commercial, industrial and residential buildings
Financing of companies engaged in the production, supply or installation of energy saving or renewable energy technologies, equipment and material
Investments aimed at reducing primary energy consumption and CO₂ emission
Investments for climate adaptation.

Borrower description

RA resident legal entity, sole proprietor, individual

Size of financing

Up to 100% of the required investment amount

Grant

For loans provided within the EBRD SMEC project- 10% or 15%, depending on the implemented project

The grant is provided to the Borrower in Euro. The minimum amount of the contractual loan amount and the investment cost of the project (exclusive of VAT) is taken as the basis for calculating the grant amount. The exchange rate published by the Central Bank of Armenia as of the date of loan disbursement is taken as the basis for calculating the grant.

Decision-making for loan approval/rejection

1-7 working days from the date of receiving the package of necessary documents, after which notice to customer within maximum 1 working day

Loan disbursement period

1-7 working days after making the decision on loan provision in case of submitting the necessary documents

Other provisions (1)

The Bank is entitled to conclude an agreement with the customer on other terms and tariffs different from those defined in this document.
ATTENTION: THE NOMINAL INTEREST RATE OF THE LOAN MAY BE CHANGED BY THE BANK. If the customer does not agree with the interest rate change, he/she has the right to early and unilaterally dissolve the agreement, by repaying the principal amount of the loan in full and paying the calculated interest and other fees. Regardless of the amount of the tariff set by the Bank, the loan (borrowing) interest rate may not exceed twice the bank base rate set by the Central Bank of Armenia.
ATTENTION: LOAN INTERESTS ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE, WHEREAS THE ANNUAL PERCENTAGE RATE INDICATES HOW MUCH THE LOAN WOULD COST IN CASE OF PAYING INTERESTS AND OTHER FEES UNDER THE SPECIFIED TIMELINE AND TERM.
Average indicator of the above-mentioned ANNUAL ACTUAL INTEREST RATE indicators for the last 6 months. In case of revision, the new interest rate shall come into force from the 1st of the month following the month of revision. In case of floating interest rates, the maximum threshold for increasing and decreasing the nominal interest rate is determined as +/- 3 percentage points. If the main or secondary indicator is a negative number /below zero/, the indicator is considered as 0 /zero/. SEE THE CALCULATION PROCEDURE AT PAGE "ANNUAL ACTUAL INTEREST RATE CALCULATION GUIDE” on inecobank.am
Any amount deposited to the account is as a rule directed by the Bank to repayment of amounts payable to the Bank under the Loan Agreement, including commissions, penalties, interests and Loan amount available at the time of deposit. The Bank has the right to make the repayment defined by this Clause in another sequence.
FOR AGRICULTURAL LOANS NOT EXCEEDING 5,000,000 AMD LIMIT, AS WELL AS FOR UP TO 5,000,000 AMD LOANS PROVIDED TO ENTERPRISES OR SOLE PROPRIETORS CLASSIFIED AS SUPER SMALL ACCORDING TO THE LAW ON "STATE SUPPORT FOR SMALL AND MEDIUM-SIZED ENTERPRENEURSHIP", THE BANK PROVIDES AN INDIVIDUAL SHEET BEFORE SIGNING THE LOAN AGREEMENT IN ACCORDANCE WITH REGULATION 8/05 "RULES OF BUSINESS CONDUCT OF FINANCIAL INSTITUTIONS" APPROVED BY THE BOARD OF THE CENTRAL BANK OF ARMENIA, WHICH WILL INCLUDE THE INDIVIDUAL TERMS OF THE LOAN TO BE PROVIDED TO THE CUSTOMER.
WARNING: IN CASE OF NON-REPAYMENT OF INTEREST AND PRINCIPAL OF THE LOAN AMOUNT IN TIME THE PLEDGED PROPERTY AND/OR CASH FUNDS MAY BE CONFISCATED AS STIPULATED BY THE LAW AND THE CUSTOMER INFORMATION WILL BE SUBMITTED TO THE CREDIT REGISTER WITHIN 3 WORKING DAYS WHERE THE CUSTOMER’S CREDIT HISTORY IS FORMED. THE CUSTOMER HAS RIGHT TO ACQURE HIS/HER CREDIT HISTORY FROM THE CREDIT REGISTER ONCE A YEAR FREE OF CHARGE.
ATTENTION: POOR CREDIT HISTORY MAY HINDER THE CUSTOMER WHEN GETTING A LOAN IN THE FUTURE. IF THE CUSTOMER FAILS TO FULFILLL THE OBLIGATIONS, IN CASE THE COLLATERAL IS NOT SUFFICIENT WHEN REPAYING THE OBLIGATIONS AT THE EXPENSE OF THE COLLATERAL, THE OBLIGATIONS MAY BE PAID-OFF AT THE EXPENSE OF OTHER PROPERTY OF THE CUSTOMER.

Other provisions (2)

The following documents are required for loan disbursement:

Before performing a financial analysis:
For legal entities/sole proprietors

Charter of the legal entity (with all amendments).
Identity documents of the legal entity/ sole proprietor managers and main owners
For joint stock companies, the list of owners from the Central Depository.
The decision of the competent body of the legal entity for receiving a loan/acquiring a fixed asset by leasing
Legal Entity/Sole proprietor Profits tax report or Turnover tax report
The pledged property ownership certificate

Documents required from the pledgor/guarantor:

for individual pledgor/guarantor: identity document,
for legal entity pledgor/guarantor: identity documents of managers and participants, the Charter with all amendments, for joint-stock companies: the list of owners from the Central Depository, as well as the decision of the competent body on pledging/guaranteeing the property
Collateral appraisal reports/collateral act prepared by independent appraisal companies acceptable for the Bank
Supplier's (seller's) transfer account/commercial offer
Other information necessary to perform the customer financial analysis.

After the approval of loan application

The bases for ownership of the pledged property,
The bases for ownership of the pledged property,
Certificate of Marriage/Divorce of the pledgor individual (if any), identity documents of the spouses, Certificate of Death (if any),
Appropriate insurance documents in case of insurance requirement.

Criteria for loan approval

Availability of a profitable business operating for at least 3 consecutive months
positive or neutral credit history
transparency of activity
sufficient income
availability of property
availability of collateral and/or guarantee

Criteria for loan rejection

insufficient income for loan repayment
submission of unreliable data by the customer
poor credit history
risk area of the customer’s income source.

Terms and procedure for calculation and revision of floating rate

The floating rate is equal to the sum of the reference rate and the fixed component.
Reference rate
Main indicator

Rounding the average index of the last 6 months of the yield curve to maturity of RA 6-month state coupon bonds to 1 /one/ digit after the decimal comma for loans in AMD. Published by the CBA on https://www.cba.am/am/SitePages/fmofinancialmarkets.aspx
Rounding the average index of the last 6 months of the yield curve to maturity of RA 6-month state coupon bonds to 1 /one/ digit after the decimal comma for loans in AMD. Published by the CBA on https://www.cba.am/am/SitePages/fmofinancialmarkets.aspx
Rounding the average index of the last 6 months of the yield curve to maturity of all bonds issued by Euro area central governments to 1 /one/ digit after the decimal comma for loans in Euro. Published by the ECB on https://www.ecb.europa.eu/stats/financial_markets_and_interest_rates/euro_area_yield_curves/htm l/index.en.html

Secondary indicators

The interbank repo rate set by the Central Bank of Armenia for loans in AMD. Published by the CBA of RA on the website https://www.cba.am
Any of the following indicators, as determined by the Bank, for loans provided in USD:

- - The SOFR rate set by the Federal Reserve Bank of New York. Published by the Federal Reserve Bank of New York on https://apps.newyorkfed.org/markets/autorates/SOFR
-- The Federal funds rate set by the US Federal Reserve (US Central bank), and if with an interval, the upper limit of the interval. Published by the Federal Reserve on http://www.federalreserve.gov/fomc/fundsrate.htm

In case of using secondary indicators for loans provided in Euro, the Bank has the right to choose the secondary indicators at its discretion at the time of passing to secondary indicators.

Fixed component

Determined by deducting from the fixed interest rate the yield curve to maturity index of the RA 6-month government coupon bonds effective as of the date of decision on loan approval for AMD loans, the 6-month USD LIBOR rate value for USD loans, and the index of all Euro area central government 6-month bonds yield curve for loans in Euro.

ATTENTION: THE LENDER HAS THE RIGHT TO UNILATERALLY CHANGE THE FIXED COMPONENT, IF THERE WERE VIOLATIONS OF OBLIGATIONS TO THE BANK UNDER THE CREDIT, COLLATERAL, GUARANTEE, OR OTHER AGREEMENTS, AS WELL AS IN OTHER CASES DEFINED BY THIS TARIFF.

Interest rate revision

The interest rate is subject to mandatory revision, if the difference between the Reference ratecalculated for the given period and the current Reference rate is more than 0.5 percentage points. The Bank has the specified obligation of changing rates in case of both positive and negative deviation. In case of a change in the reference rate up to 0.5 percentage points inclusive, the loan interest rate is not revised. The floating interest rate is revised by the Bank twice a year: on February 15 and August 15. In case the specified days are non-working, it will be revised on the next working day, based on the average for the last 6 months of the above-mentioned indicators, which make the basis for calculating the floating interest rate. In case of revision, the new interest rate shall come into force on the 1st of the second month following the month of revision. For floating interest rates, the maximum threshold for increasing and decreasing the nominal interest rate is set as +/- 3 percentage points.

Updated as of 23.01.2023 17:06