Account Lending

Type of financing

Loan, line of credit

Type of a line of credit

Revolving/non-revolving line of credit

Revolving/non-revolving line of credit with a preapproved repayment schedule

Currency

Armenian drams, US dollars, Euros

Borrowers

RA resident and non-resident legal entities and sole proprietors who have been Bank’s customers for at least 1 year

Purpose

Covering operating expenses,

Repayment of accounts payable,

Covering other expenses

Maximum and minimum amounts

5,000,001- 500,000,000 Armenian drams or a foreign currency equivalent

The maximum amount cannot exceed 30% of the Borrower's net credit turnover per year.

Disbursement method

Non-cash

Repayment period

Up to 12 months

Interest rate

In Armenian drams: starting at 12.5%, 

In US dollars: starting at 8%, 

In Euros: starting at 7%,

The annual interest rate will be based on the scope of cooperation with the Bank, lending terms and conditions, Borrower’s credit rating, etc.

Is not subject to publication.

Grace period

Will be set with consideration of the business characteristics of the Borrower and cannot be longer than 6  months.

If the period of the loan/line of credit exceeds 6 months, the principal amount upon expiration of the grace period will be paid each month based on the annuity scheme or in equal proportions.

Annual interest rate to be accrued on unused portion of the line of credit

For a revolving line of credit:  0-2%

For a non-revolving line of credit – no interest will be charged

Sureties

RA resident legal entities or natural persons

If the borrower is a legal entity, the existence of a natural person-surety is mandatory, while for sole proprietors this requirement will be effective on an as-needed basis.

Repayment method

For revolving and non-revolving lines of credit the principal amount will be repaid in a lump sum, at the end of the period, while interest will be paid on a monthly basis.

For a loan or a line of credit with a preapproved repayment schedule:

• «Annuity» scheme
• «Flexible» scheme

Penalty for late payment of principal and interest on the loan/line of credit

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

Security

The Bank's right to immediately charge the Borrower's debt from the funds in the Borrower's account as well as other accounts; this provision will be documented in the loan agreement.

Penalty for prepayment of the principal amount

• If the Borrower repays more than envisaged under the loan repayment schedule, they must pay a penalty at 5% of the amount exceeding the monthly principal as set in the repayment schedule.

A lump-sum fee for loan disbursement

At 0.5% of the contractual amount but no more than AMD 100,000.