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Ensure the growth and development of your business with the business loans provided by Inecobank. We attach great importance to the needs and requirements of each business. Our experienced and skilled business managers will provide the necessary consulting to come up with the best solutions for your business.

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About Loans Terms & Conditions Additional documents

Borrower description

RA resident legal entity/sole proprietor
RA resident individual with an activity in the field of agriculture

Fixed interest rate

Floating interest rate

Loan currency

֏ $ €

ATTENTION: IN CASE OF LOANS PROVIDED IN FOREIGN CURRENCY, CHANGES IN CURRENCY EXCHANGE RATE MAY HAVE IMPACT ON LOAN REPAYMENTS

Minimum amount

1 000 000 ֏
2 500 $
2 000 €

10 000 000 ֏
20 000 $
20 000 €

Maximum amount

The limit permissible by the normative of the maximum risk for one borrower defined by the internal legal acts of the Bank.

Maturity term

1-48 months for working capital replenishment
1-60 months for acquisition of fixed assets or for other investments

48-120 months for acquisition of fixed assets for or other investments

Annual nominal interest rate

AMD

12-19%
The interest rate of loans provided by the European Investment Bank (EIB) resource is 10.5-11%.

USD

9-15%

EURO

7-13%

AMD

Fixed for the first three years maximum: 11.5-19%, then floating

USD

Fixed for the first three years maximum: 8.5-15%, then floating

EURO

Fixed for the first three years: 7-13%, then floating

Annual actual interest rate

AMD

13.19-24%

USD

9.85-24%

EURO

7.68-24%

THE CALCULATION OF ANNUAL ACTUAL INTEREST RATE FOR COMMERCIAL LOANS IN FOREIGN CURRENCY WAS BASED ON THE RELEVANT AVERAGE EXCHANGE RATE PUBLISHED BY THE CENTRAL BANK OF ARMENIA ON FEBRUARY 14, 2020. THE ANNUAL ACTUAL INTEREST RATE MAY CHANGE DEPENDING ON THE CHANGE IN EXCHANGE RATE PUBLISHED ON THE OFFICIAL WEBSITE OF THE CENTRAL BANK OF ARMENIA.

The following annual nominal interest rates apply for the fixed-rate loans secured only by cash funds: the interest rate paid for the pledged cash funds + minimum 5% annually, but not less than

For AMD-14% annually
For USD and Euro- 9% annually

If the type of deposit of the pledged cash funds includes a change in interest rates during the validity of the agreement, then the maximum interest rate of the deposit agreement is taken as a base rate.

Early loan repayment

For early loan repayment, in case provided for in the loan agreement, the Bank has the right to require from the customer to pay a penalty up to 5% of the early repaid amount

Overdue liability repayment

For each overdue day, the Bank has the right to calculate a penalty of 0.13%

of the outstanding amount starting from the first day of delay

Security/Collateral

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

IF THE BORROWER FAILS TO FULFILL ITS OBLIGATIONS, THE GUARANTOR UNDERTAKES TO PAY INSTEAD OF THE BORROWER, AS WELL AS THE GUARANTOR’S CREDIT HISTORY WILL GET WORSE AND THE GUARANTOR MAY LOSE HIS/HER OWN PROPERTY

LTV ratio

75% of liquidation value of the collateral

Insurance

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

Way of disbursement

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

Repayment

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

Other terms

Interest calculation procedure	The interest rate is applied to the decreasing balance of the loan based on the calculation of 360 days in a year, unless otherwise provided for in the loan agreement.
Loan term revision commission	15 000 AMD
Commission for the change of the collateral which is the security for the loan (including the change of the owner of the collateral)	15 000 AMD
Commission for the guarantee change	15 000 AMD
Commission for release of collateral	15 000 AMD
Commission for other consents provided by the Bank	10 000 AMD
Time for decision-making on 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 term	1-7 working days after making the decision on loan disbursement in case of submitting the necessary documents
Validity of the decision on loan disbursement	30 days
Sectors for lending	All the RA economy sectors, except for the following activities: manufacture or trade of weapons and military equipment, casinos, bookmakers, forex trading, investment in securities, other areas that contradict the RA legislation or are restricted by the Bank's credit policy and/or by obligations assumed under contracts concluded by the Bank
Lending purpose	Working capital Replenishment and running costs procurement of goods, raw material and other material customs clearance of imported goods, other operating expenses Investment purpose acquisition, repair, modernization of equipment purchase and repair of vehicles acquisition and renovation of commercial premises Other purposes related to business development: repayment of accounts payable, implementation of investment programs, Other purposes that do not contradict the RA legislation and the agreements signed with the Bank's creditor organizations Refinancing of existing loans in other financial institutions.

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.

Updated as of 15.08.2024 08:56