Loans for Small and Medium-Sized Businesses “Liquid+”

Currency

AMD, USD, Euro

Eligible borrowers

Armenian resident sole proprietors and legal entities

Loan purpose

Business development, capital investments, lump-sum investments in working capital, repayment of accounts payable, etc.

Loan limits

Up to AMD 150.000.000 or equivalent amount in foreign currency

Loan utilization method

Non-cash

Loan term

Up to 60 months

Loan repayment method

• Under “Annuity” plan
• Under “Springy” plan

Annual interest rate

AMD

13.5%-15%

USD

8%-9.5%

Euro

6.5%-7.5%

Interest rates approved within this range will depend upon the level of borrower’s creditworthiness, account turnover, cooperation framework with the Bank, etc.

Loan security

• Apartment, private house, land lot (except for production facilities) in Yerevan, Vanadzor, Gyumri and Abovyan cities.
• Sureties of legal entities or individuals.

Loan-to-value ratio and special terms

• 71-85 % of the appraised liquidation value,
• The mentioned Loan-to-value ratio may be applied to the customers totally complying with the Bank’s creditworthiness criteria, with no cases of loan classification for the past 24 months and total number of overdue days for the last 12 months not exceeding 20.

Penalties payable for past due principal and interest

• For past due principal  - 0.015% per day
• For past due interest - 0.1% per day.

Penalty for early repayment

• If prior to the end of the first half of the loan term, the principal monthly payment exceeds the monthly principal amount under the repayment schedule, a 5%-penalty should be imposed on the excessive prematurely paid sum. In some cases the penalty amount may be changed based on the decision of the Bank competent body.
• In case of absence of any penalties for early repayment of the loan principal, the Bank competent body can establish a higher interest rate (up to 2%).

Fees charged

In case if the loan amount is received in cash, a cash withdrawal fee is charged from the bank account according to the current tariffs.

“Liquid” + tariff rate

Tariff charged for a loan amounting to 71-85% of the collateral liquidation value:

• Loan-to-value ratio is 71 - 75 %: 0.3% of the loan principal amount,
• Loan-to-value ratio is 76 - 80 %: 0.5% of the loan principal amount,
• Loan-to-value ratio is 81 - 85 %: 1% of the loan principal amount,
• The tariff rate is charged in a lump-sum during the loan disbursement.

State duties and other payments

• State duties charged by Armenian competent state bodies for notarial certification and registration of the collateral agreement.
• Collateral appraisal fee according to the tariff rates set by independent appraisal companies which cooperate with the Bank.