Loan Currency  AMD
Creditor
  • Individuals, 
  • Private Entrepreneures,
  • Legal entities 

Minimum and maximum    

limits of loan amount

200,000 - 50,000,000 AMD 

Loan purpose

funding goals1
Credit terms
Operating expenditures                
Up to 5,000,000  AMD 3-24 months
5,000,000-50,000,000 AMD- 3-36 months       
Capital investments 3-60 months
Mixed (Capital investments +Operating expenditures) 3-60 months
Loan principal grace period    flexible, depending on the type and purpose of the loan
Annual nominal interest rate    18%
Loan disbursement method

 Cash, non cash/single payment

Overdue interest penalty                                daily                                                                   0.2%
Overdue loan penalty                                 daily                                                                   0.1%
Loan interest calculation method  Declining, on the outstanding  loan balance
Repayment form Annuity, differential or prrivate payments
Collateral

 

200,000-500,000

 

 

  1. Guaranteed by at least 2 individuals or private entrepreneurs   
  2. At least 1 of the guarantees should either be owners of a real estate or should have a registered salary
500,000-1,000,000
  1. Guaranteed by at least 3 individuals or private entrepreneurs.    
  2. At least 2 of the guarantees should either be owners of a real estate or should have a registered salary
200,000-1,500,000
  1. Real estate or guarantees of at least 2 individuals or private entrepreneurs, who do not have any current overdue loans.    
  2. Guarantees should either be owners of a real estate or should have a registered salary
1,000,000-50,000,000
  1. Real estate and/or vehicles, agricultural machinery2
  2. The Credit Committee may also require/ask other collateral than mentioned above. 

 

Penalty

 

 

Penalty in case of non target use of loan amount 50,000 AMD 
for 5 continual overdue days  1% on the outstanding loan amount but not more than 50,000 AMD 
Age of the creditor and guratanor  

18-65 years old

Collateral evaluation

The  Collateral is being evaluated  by  the organization employee.

Evaluation is free.

"Loan to Collateral value" maximum ratio (%) Maximum 60% of the  property's liquidation value
Minimum requirements for application consideration
  1. The borrower should not have any overdue loans.
  2. The sum of borrower's overdue liability days during the last 12 months should not exceed 30 days.
  3. The borrower should be an owner of a real estate.
Approval period 1-4*
*The mentioned time period can be changed depending on the features of the activity.
Loan aplication approving body Expanded Committee
Branches 
1Funding objectives  
Capital expenditures (for Investment Sub-loans) 1.Purchase (including transportation and installation), upgrade, capital renovation or long-term lease of productive assets, such as land, buildings, cattle sheds, machinery (including motorized), equipment, vehicles, and tools applied in the main business activity,
2. Purchase (including transportation or planting) or long-term lease of biological assets, including fruit trees and vines, cattle and flocks used for reproduction rather than immediate slaughter or reselling
3. Purchase of any other items indicated in Chapters 11-12 (Non-current assets) of the Chart of Accounts for Organizations  (Government Decree 353-N of 17.04.2012) which are tightly related to the main business activity of Beneficiary
Operating expenditures (for Working capital Sub-loans) 1. Purchase of inventory and supplies to be used in the main business activity, including seeds, plants, fuel, pesticides, 
2. Rent of production means to be used in the main business activity, including premises, machinery, equipment, tools and other means,
3. Purchase of services for pre-, post- and support activities, including fertilization, spraying, cleaning, trimming, grading, disinfecting, waxing, sun-drying veterinary, vaccination, artificial insemination, shearing etc.
4. Financing of labor costs related to the main business activity
5. Purchase of any other items indicated in Chapter 71 (Operating expenses) of the Chart of Accounts for Organizations  (Government Decree 353-N of 17.04.2012) which are tightly related to the main business activity of Beneficiary
2Eligible types of collateral
Real Estate Administrative areas of Yerevan (with the exception of Sari Tagh, Kond, Ayratsia and areas considered as priorities/ public interest), the territories nearby Yerevan (Yerevan-Abovyan, Yerevan- Ashtarak), Abovyan, Hrazdan, Tsaghkadzor, Ashtarak (Mughni, Karpi, Parpi, Ohanavan), Ararat, Echmiadzin, Armavir, Artashat, Dilijan, Gyumri, Vanadzor, Goris, Kapan .
Vehicles  Vehicle, the manufacture date of which mustn’t be earlier than 
  • For Russian and Chinese manufactured vehicles:  5 years, 
  • For other manufactured vehicles:15 years.   
  •                                       
If the car stays in the possession of the pledger, it is subject to mandatory insurance (CASCO) (physical damage and abduction). The beneficiary of the insurance contract is the UCO
Agricultural machinery   Combines, tractors, trucks, excavators and other equipment. The eligibility is determined by the Organization․