Overdraft

Purpose

Solving short-term financial problems of RA resident

non-resident legal entities, individual entrepreneurs and RA resident

non-resident individuals engaged in agriculture.

Client class

micro, small/medium, large

Currency

AMD / USD

Minimum amount

micro: 1,000,000 AMD 2,500 USD,

small/medium: 1,000,000 AMD 2,500 USD,

large: 1,000,000 AMD 2,500 USD

Maximum amount

micro: 25,000,000 AMD 50,000 USD,

small/medium: 25,000,000 AMD 50,000 USD,

large: according to internal regulations

Minimum maturity

1 month

Maximum maturity

12 months

Annual interest rate

micro: AMD: from 17% USD: from 14%,

small/medium: AMD: from 15% USD: from 12%,

large: AMD: from 13% USD: from 10%

Annual actual rate

micro: AMD: from 19.73% USD: from 16.21%,

small/medium: AMD: from 17.38% USD: from 13.92%,

large: -

Monthly service fee

N/A

Loan application processing fee

N/A

Provision fee

1% of the overdraft amount, but no less than 40,000 AMD, single payment

Repayment of used principal amount of the credit line and the interest amount

Overdraft repayment is carried out by crediting funds to a bank account, if funds are available in the bank account, daily, at the end of the banking day. Interest amounts are calculated every day to the actual overdraft balance. Interest is repaid from the 1st to the 5th day of each month in accordance with the overdraft agreement.

Net credit turnover (NCT)

The total amount of credit receipts received by the client to the current foreign currency account opened with the Bank and

or other banks for 12 months prior to the application submission. NCT does not include receipts of funds provided by the Bank and

or other banks, receipts of foreign currency, transfers

replenishments made from one account of the client (including persons related to it) to another account.

NCT is calculated on the basis of bank statements provided by the Customer, monthly maximum and minimum turnovers are not taken into account, since it is based on financial statements for the last reporting year, which are compared with NCT.

Requirement for NCT

Ensuring the minimum amount of NCT stipulated in the overdraft agreement.

After signing the overdraft agreement, the client's account is checked every two months.

In case of failure to provide the minimum amount of NCT, the Bank has the right to reduce the overdraft limit, increase the annual interest rate, demand early repayment of the overdraft and apply other measures stipulated by the agreement.

Minimum term of business history (uninterrupted)

12 month

Minimum business requirement

To receive an overdraft, the client must receive payments at monthly intervals from at least 3 different counterparties within 12 months preceding the submission of the application

Opening/maintenance of bank account

according to the current tariffs of the Bank, which are presented at the following link: information bulletin on tariffs

Loan amount cashout

according to the current tariffs of the Bank, which are presented at the following link: information bulletin on tariffs

Requirements for the borrower / guarantor

Age of physical persons and persons having the status of private entrepreneurs must not exceed 70 at the maturity

Requirements to the credit history of the borrower (including persons owning 10 % and more in the charter capital thereof)

guarantor

1. No overdue/classified obligations as of the date of loan,

2. Good or neutral credit history acceptable by the Bank, according to internal legal acts of the Bank,

3. Competent authorities of the Bank may decide to make requirements to other participants, as well as persons closely related with the borrower

Acceptable means of security/Pledge

• Real estate,

• Fixed assets/equipment, techniques, other property,

• Vehicles,

• Working assets,

• Right of receivables,

• Financial flows,

• Guarantees, warranties,

• Monetary means,

• Precious metals (goods),

• Shares,

• Securities,

• Right to collateral,

• Other property not prohibited by the RA legislation or property right

Credit line limit/collateral ratio

By decision of the competent authority of the Bank, the maximum rate is 50-100%, depending on the type of collateral (in the case of loans secured by collateral). By decision of the competent authority of the Bank, a loan can be provided without collateral or simultaneously with other collateral (guarantee, financial flows, property rights, etc.).

Insurance of subject of collateral

Under the decision of the competent authority of the Bank, collateral insurance may be required based on the loan balance or the estimated market / realizable value of the property.

Fine, penalty

Fine for overdue credit line amount -0.1% daily.

Fine for overdue interest amount - 0.1% daily

Where to apply

Bank’s branches, Head office

Signing the main loan agreement

At the request of the client, a main loan agreement can be concluded with him for a period of up to 240 months.

Provision factors

1) Positive credit history,

2) Stable cash flows,

3) Compliance of the collateral with the requirements of the Bank,

4) Good reputation,

5) Other factors

Rejection factors

1) Negative credit history,

2) Insufficient financial situation,

3) Non-compliance of the collateral with the requirements of the Bank,

4) Providing false or inaccurate information,

5) Providing information that calls into question the return of the loan,

6) Other factors

Maximum term of making decision

Up to 15 business days after submitting full pack of required documents

Giving notice to the customer

1 business day

Validity term of the decision

30 days

Terms of re-approval

Maximum once, within 30 business days after expiration of the term of decision, under terms of crediting applicable as of the date of re-approval

Term of providing credit line

Maximum 3 business days after the submission of the decision on the provision of a credit line and the provision of the right of pledge after registration, if the client has not expressed a desire to receive a loan later, observing the period specified in clause 31.

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.