Large and SME Business Loan

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Corporate
Large and SME Business Loan

1.	Loan currency	Armenian drams, US dollars or Euros
2.	Borrowers	RA resident or non-resident legal entities and sole proprietors*
3.	Purpose	Acquisition of fixed assets/capital investments Project financing Replenishment of working capital Covering of operational expenses, repayment of accounts payable Refinancing of existing loans with different financial institutions and/or Evocabank OJSC Other purposes
4.	Maximum amount	AMD 10,000,000 – AMD 4,000,000,000 (or equivalent foreign currency amount),
5.	Disbursement method	Non-cash In a lump-sum or in several tranches
6.	Repayment period	For fixed interest rates - up to 120 months, For floating interest rates – up to 180 months**.
7.	Repayment method	«Annuity» scheme «Springy» scheme On an individual basis, depending on the specifics of the customer’s business activities, If the repayment is based on individual repayment scheme, principal must be repaid in equal annual installments at least three times a year (this does not refer to the grace period and project financing).
8.	Grace period	Will be set with consideration of the characteristics of customer's business.
9.	Annual nominal interest rate*	Currency	Fixed rate	Floating rate
		AMD	Starting at 12.25%	Starting at 11.5% (total of 4.78% + variable component)
		USD	Starting at 8.5%	Starting at 8.4% (total of 4.69% + variable component)
		Euro	Starting at 8.2%	Starting at 8.2% (total of 5.65% + variable component)
10.	Penalty charged for late payment of the principal and interest amounts	For past due principal amount - 0.015% per day For past due interest - 0.1% per day.
11.	Penalty for early repayment of the principal	If the borrower repays more than envisaged under the repayment schedule prior to the end of the first half of the contract period, the Bank will impose a penalty at 5% of the amount exceeding the monthly principal subject to repayment.
12.	Security	Pledged property and/or surety bond
13.	Sureties	RA resident legal entities, natural persons (on an as-needed basis)
14.	Up-front fee for loan disbursement (is charged at the time the loan is made available to the borrower)	0.5%, but no more than AMD 100,000
15.	Loan utilization	As per the Bank’s terms, conditions and fees set for account service
16.	Other costs and expenses	State duties for state registration of collateral with RA competent bodies, Notary fees, Collateral appraisal fee according to the fees of independent appraisal companies.
*During the entire loan service period, the age of the sole proprietor must be under 70.
**A loan period exceeding 120 months may be set only for acquisition of fixed assets (in case of pledged real property and/or for acquisition of real property), construction or project financing.

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).

Extending Lines of Credit

Lines of credit are intended for RA resident and non-resident legal entities and sole proprietors at business loan interest rates, loans will be disbursed in Armenian drams or foreign currency. The following lines of credit are available to relevant borrowers:

Revolving line of credit, under which you can periodically repay the debt within the limits and term of validity of the approved line of credit and borrow funds within the set limits. It is noteworthy that an annual interest rate at 0-4% will be accrued on the unused portion of the line of credit.
Non-revolving line of credit, funds will be extended to a borrower in several portions, upon the debt repayment the line of credit limit will not be renewed; besides, no interest will be accrued on the unused portion of the line of credit.

Early Repayment Terms

In case of repayment of more than 50% of the principal amount prior to expiration of the first half of the loan term, the borrower shall pay а penalty at 5% of the prematurely paid sum exceeding the 50% of the principal amount.

WARNING:

In case of delinquent liabilities with regard to the loan principal and interests of the pledged property can be CONFISCATED according to the law, and the information about the borrower will be recorded in the Credit register.
In case of redeeming the obligations as a result of delinquent liabilities on account of the collateral, if the value of the collateral is not enough for covering the borrower's loan obligations, then the Bank (according to the existing legislation) has an opportunity to redeem the loan obligations on account of the borrower's other properties ( if available).