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1.
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Currency
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AMD
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2.
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Eligibility
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- RA resident legal entities and sole proprietors qualifying for SME loans.
- The results of analysis of borrower’s financial statements must meet the Bank’s requirements.
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3.
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Purpose
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- For capital investments and other business activities.
- Note: the Program aims to enhance MSME liquidity by facilitating their access to loans in national currency. The program is not aimed at refinancing of loans of a specific sector(s). It will finance current business needs (working capital) in various economy sectors and investments (equipment, machinery, enterprise premises, etc.).
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4.
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Loan limits
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- Loans backed by collateral: AMD 3,000,001 – AMD 160,000,000
- Loans backed by a surety of at least an individual or legal entity: AMD 1,000,000 – AMD 3,000,000
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5.
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Disbursement method
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Non-cash
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6.
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Loan period
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6 - 60 months
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7.
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Grace period for loan principal
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In some cases, grace period may be up to 3-6 months
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8.
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Nominal interest rate per annum
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- Loans with up to a 36-month repayment period – 11%
- Loans with repayment period from 36 to 60 months – 11.5%
- Based on a decision of the Bank competent body, the loan interest rate under the Program may be set to equal 10% - 11% for diligent borrower-customers (who actively use bank's various services, ensure non-interest income and bank account cash turnover, who have signed or intend to sign a cooperation agreement with the Bank (POS, V-POS, payroll projects, etc.)).
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9.
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Collateral
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- Real and moveable property,
- Funds in deposit or current accounts,
- Standard gold bars or scrap gold,
- Short-term government bonds or other securities.
- If appropriate and available, current assets and finished goods (with consideration of the liquidity of other types of collateral or loan-to-value ratio, loan period, customer’s credit history, etc.).
- Additional condition: Personal sureties of business founders/beneficiary owners are required, besides, the Bank may also request submission of a surety of an individual and/or legal entity.
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10.
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Acceptable Loan-to-Value ratio
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- Real property and other fixed assets – up to 70% of the appraised value.
- Short-term government bonds – up to 95% of nominal value.
- Other securities – up to 70% of appraised value.
- Standard gold bars and scrap precious metals – up to 95% of appraised value.
- Cash (deposit and current accounts) – up to 90%.
- Working capital – up to 50% of the appraised value.
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11.
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Insurance
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If appropriate
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12.
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Surety requirements
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- An RA resident - legal entity, sole proprietor or individual.
- Absence of past due liabilities, also in relation to issued surety bonds).
- Absence of loan classifications during the past 12 months, and total number of days past due should not exceed 30.
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13.
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Prerequisites for loans secured only by surety bonds
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- Absence of loan classifications during the past 12 months, and total number of days past due should not exceed 30.
- The number of the borrower’s unsecured loans (without the expected loan) should not exceed 5 and their cumulative balance should not exceed AMD 5,000,000 and/or foreign currency equivalent.
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14.
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Fees and charges
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- Loan application review – 0
- Loan account service – 0.5% of the loan amount but not less than AMD 20,000 and not more than AMD 100,000.
- If the loan amount is received in cash, the Bank will charge a cash withdrawal fee according to the Bank’s rates and fees.
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15.
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State duties and other costs
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- State duty charged by RA competent bodies for notarization and registration of collateral agreement.
- Appraisal of pledged assets, according to fees and rates by independent appraisal companies cooperating with the Bank.
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16.
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Additional conditions
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- No refinancing of old loans is envisaged under the Program.
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