Small and Medium Business Lending

Currency	AMD, USD, EUR
Borrowers	RA resident individual entrepreneurs and legal entities
Loan purpose	The loan is provided for business development, capital investment, one-off investment in working capital, payment of accounts payable and other purposes.
Limits	AMD 5,000,000 - 750,000,000 or equivalent foreign currency
Usage method of the granted loan	Non-cash
Repayment period	Up to 84 months (loans with the maximum term are provided for the purpose of making capital investments)
Loan repayment method	Annuity Springy
Annual interest rate	AMD	12.5-15%
	USD	8-9.5%
	EUR	7-7.5%
	Interest rates approved within the range depend on the degree of qualifying  the Bank’s creditworthiness criteria, monetary turnover of the bank accounts, the scope of the cooperation with the Banks and other
Loan security	Movable and immovable property Monetary funds available on deposit or current accounts Working capital, final product Standard gold bars or scrap, precious metals Short term bonds issued by the government or other securities Guarantee of legal entities or physical individuals
Penalty for loan principal and/or interest overdue	For overdue principal - 0,015 % daily For overdue interest - 0,1 % daily
Early loan repayment penalty	For the first half of the loan term, penalty is applied in case of early principal payment:  5% of the amount exceeding the monthly loan amount as specified in the schedule For some specific cases the penalty amount may be changed based on the decision of the Board of the Bank
Fees	Loan account service fee- 0.5% of the loan amount, but not less than AMD 20,000, maximum AMD 100,000 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.
State duties and other fees	For ratification and registration of the pledge agreement state duty and/or service fee are paid to the RA Authorized State Bodies. Valuation fee of the pledged securities according to the tariffs defined by the independent valuating companies.

USEFUL INFORMATION

General Information

• Mutual relations between the bank and the borrower will be regulated under the loan agreement, in line with RA legislative acts.
• Loan term and interest rates, maximum and minimum amounts, conditions and principles of advancing loans are set in the bank's Lending Policy and other internal guidelines regulating lending procedure.
• In the event of involvement in the lending process under a specific lending program, we will extend loan funds according to the terms and conditions of that specific Program: interest rates, loan amounts, repayment term, loan-to-value ratio, etc. (lending terms and conditions under a Program are not subject to regulation by the bank's Lending Policy).

Acceptable Ratio of Loan-to-Value per Type of Collateral

• Real property and other fixed assets – up to 70% of the appraised market value,
• Treasury bills – up to 95% of the nominal value,
• Other securities – up to 70% of appraised value,
• Standard gold bars and scrap of precious metals – up to 95% of appraised value,
• Precious and semi-precious stones – up to 50% of appraised value,
• Cash (in deposit and current accounts) – up to 90%,
• Working assets – up to 50% of appraised value,
• Loans backed by cash flows will be advanced to those who have been our customers for a period of over one year and executed up to 30% of annual cash flows through the current account (loans maturing within a 180-day period).

Timeline for Decision-Making and Extending a Loan

• The decision will be made within 10 (Ten) banking days upon submission of necessary documents.
• We will notify you on the decision within 1 (One) banking day orally or, at your request, also in writing.
• Loan will be advanced to you within 5 (Five) banking days upon completion of pledging process (when the entire package of documents is ready).

Criteria for Taking Decisions on Loan Application

Criteria for Positive Decision-Making:

• Your adequate creditworthiness according to assessment criteria set in bank's internal guidelines,
• Trustworthy data and documents submitted to the bank,
• Positive rating of your commitment and due diligence according to the outcomes of the credit history review and analysis,
• Liquid collateral according to the criteria set by bank's internal guidelines as well as acceptable ratio of Loan-to-Value,
• Well-validated purpose of the loan and business-plans.

Criteria for declining a Loan Application:

• Your inadequate creditworthiness according to assessment criteria set in bank's internal guidelines for assessment of borrowers' creditworthiness,
• Unreliable data and documents submitted to the bank,
• Negative rating of your commitment and due diligence according to the outcomes of the credit history review and analysis,
• Badly justified purposes of the loan and unsupported incomes projected in business plans,
• Other valid reasons which can affect the ability of the borrower to repay the loan.

Procedures of the loan repayment, interest accrual and payment

• The loan will be repaid according to the schedule under one of the following schemes, whichever you prefer:
  • “Annuity” plan (equal monthly payments), including variable portions of the principal amount and accrued interest,
  • “Springy” plan (variable monthly payments), including the payment of fixed principal amounts and variable interest.
• Interest will be accrued on the actual loan balance covering the period of loan disbursement till the day before the due date (no interest will be accrued for the due date).
• Interest calculation is based on a 365-day year. If the due date is not a business day, this date will be extended to the next business day.
• Payment can be made in our Head office and all branches (except Erebuni branch).