ID-EIB-III Project

Loan purpose

acquisition/replenishment of tangible and/or intangible fixed assets, working capital for the purpose of agriculture, processing of agricultural products, tourism, export promotion, industry

Client

RA resident micro, small/medium and large enterprises (including Private Entrepreneurs) engaged in the spheres of agriculture, processing of agricultural products, tourism, export promotion and industry

Currency

AMD

Minimum loan term

24 months

Maximum loan term

90 months but not more than the technical and economic deadline of the funded project

Minimum loan amount

AMD 5,000,001

Maximum loan amount

AMD 500.000.000

Annual nominal interest rate

8-9.5%

Loan application revision fee

not defined

Loan disbursement commission

0-1% of loan amount

Maximum loan repayment grace period

30 months

Loan and interest repayment

1. annuity - equal monthly repayments of the principal amount and the interest amount of the loan,

2. decreasing - equal repayments of the principal amount of the loan, monthly repayments of interest amounts,

3. mixed - repayments of the principal amount of the loan depending on the dynamics of the client's financial flows, repayments of interest amounts on a monthly basis.

Minimum term for business activity (continuous)

6 months

Bank account opening/servicing

According to the tariffs applied in the Bank which are presented at the following link: Information bulletin of tariffs.

Cash withdrawal of loan amount

according to tariffs applied in the Bank (the usage of the loan amount or part of it in cash can be limited by the decision of the Bank's competent body (usage of cash can also refer to transfers from the client's account held with the Bank to its other account held with the Bank or other banks))

Age restrictions towards borrower/guarantor

the age of entities with PE status or physical entities must not exceed 70 years by the maturity term of the loan repayment

Requirements to the credit history of the borrower (including its participants with 10% and more share in the charter capital)/guarantor

1. Absence of overdue loan labilities to the banking system as of the day of submission of the loan application (in terms of loans, credit lines, overdrafts, etc.),

2. Not more than a total of 30 days of delay in terms of principal amount and/or interest amount repayments of previously received loans (credit lines, overdrafts, etc.) within 12 months prior to the day of submission of the loan application,

3. According to the decision of the Bank's competent body requirements can be set towards credit histories of other participants, as well as parties closely related to the borrower.

Acceptable means of security/pledge

• real estate property,

• fixed assets /equipment, machinery, other property/,

• means of transportation,

• goods in circulation,

• right to accounts receivable,

• financial flows,

• guarantees, warranties,

• financial means,

• precious metals (items),

• shares,

• securities,

• pledge of right,

• other property or property right not forbidden by RA legislation

Maximum loan/pledge ratio

50-100% depending on the type of pledge and the decision of the Bank's competent body. The calculation of the loan/pledge ratio is based on the appraised liquid value of the property.

Insurance of subject of pledge

Insurance of the subject of pledge may be required according to the decision of the competent body on providing the loan

Fines, penalties

0.1% daily penalty for overdue loan amount.

0.1% daily penalty for overdue interest amount, penalty in the amount of 5% of the early repaid amount in case of early loan repayment

Place of acceptance of the application

Branches, Head Office of the Bank

Conclusion of chief credit agreement

A chief credit agreement can be concluded with the client upon the latter's request for a term of up to 240 months

Positive factors of provision

1) good credit history,

2) stable cash flows,

3) compliance of the subject of pledge with the Bank's requirements,

4) good reputation,

5) other factors

Rejection factors

1) bad credit history,

2) insufficient financial state,

3) incompliance of the subject of pledge with the Bank's requirements,

4) submission of false or unreliable information,

5) submission of such information that doubts the repayment of the loan,

6) other factors

Maximum decision-making term

Up to 25 business days after submission of the complete package of documents required by the Bank

Term of informing the client about the decision

1 business day

Decision validity term

30 business days

Decision reapproval term

Maximum once within 10 business days after the expiration of the validity term of the decision under the conditions applied as of the reapproval day

Loan disbursement term

Maximum 3 business days after submission of the complete package of documents and registration of the right of pledge after the decision on provision of the loan has been made

Information regarding credit history and credit score

You can learn about the importance of credit history and credit score here․

Details via abcfinance.am and acra.am links.