Loans to legal entities

Currency

AMD, USD, Euro

Eligibility

- RA resident legal entities and sole proprietors whose registered lifespan is at least 12 months.

Minimum and maximum amounts

AMD 1,000,000 – AMD 10,000,000 or foreign currency equivalent

Type of limit

Revolving, with minimum monthly repayments

Requirement for minimum monthly repayment

The borrower shall pay 10% of the amount used during the previous month (minimum amount: AMD 5,000) + accrued interest prior to the deadline indicated in the account statement. A month is a period of time from the first day of the month to the first day of the next month.

Disbursement method

Non-cash

Repayment period

6-12 months /without imposing penalty for early loan repayment

Annual interest rate

AMD

14.5-16%

USD

11.5-13%

Euro

9-10%

Interest rate for unused portion

0-0.5%

The interest rates approved within the range of regular interest depend --- if they earn or may earn, pursuant to  our assessment, non-interest income not less than AMD 1 million.

Penalty for late payment of principal and interest amounts

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

Account statement date

First day of each month

Payment day started the account statement day

15th day (a deadline is 16th day of each month)

Borrower eligibility requirements

• The loan amount cannot exceed the three-fold average monthly amount credited to the account through POS-terminals.
• The total number of past due days should not exceed 30, nor should there be any loan classification for the last 12 months,
• If the borrower had a single loan classified as watch during the past 12-24 months, the Competent body may consider the loan application if:

- the number of days of late payment does not exceed 5,

- and there are supporting documents evidencing that late payments were not due to financial difficulties but they were linked to technical and subjective reasons (card overspending, partial crediting of the minimum amount for used portion of overdraft, absence from the country, etc.),

• The number of the borrower’s unsecured loans should not exceed 5 and their cumulative amount should not be more than AMD 10,000,000 or foreign currency equivalent (without the expected loan);
• At the loan application date, the organization should not have classified surety bonds, overdue loans, as well as overdue tax liabilities or attachment imposed by Compulsory Enforcement Service (CES);
• Turnover through Evocabank’s POS-terminal for at least 6 months,
• Transferring transactions to another bank’s POS-terminal is possible only for the given loan product, on condition that the liabilities to the Bank be fully repaid. 

Surety eligibility requirements

• Individual - sureties: should have a stable income reflected in the data of the Nork Information center data base or be an owner of real property,
• During the past 12 months should not have classified loans, and total number of days past due should not exceed 30,
• Legal entity-sureties:

- whose registered lifespan is at least 12 months and during this period should not have classified loans and total number of days past due should not exceed 30,

- during the latest 12 months they should not have discontinued operations or zero financial statements,

- at the day of inquiry, they should not have classified surety bonds, overdue loans, as well as overdue tax liabilities or attachment imposed by CES.

Fees charged

• Loan account service fee – at 1% of the loan amount, but not less than AMD 20,000.
• In case of receiving the loan amount in cash, the Bank will charge a cash withdrawal fee according to the current rates and fees.

Penalty for early loan repayment 

Not applicable

Analysis

Simplified business analysis

Other terms and conditions

• If the loan is conditionally approved (on condition that all other current credit liabilities are partially or fully repaid, or tax liabilities repaid, etc.) the loan  will be disbursed either in several tranches or in a lump-sum, with full supervision of fulfillment of the prior condition. The officers in-charge of meeting the condition and supervising its fulfillment are: the loan officer compiling the loan application and the head of the territorial or structural subdivision.
• If the customer has a business loan issued on the basis of a POS-terminal turnover, they can apply for the second loan provided they do not breach the maximum threshold for the loan product, i.e. AMD 10.0 mln.
• When considering a new loan application by customers already having the same type of loans, the competent body may approve the application on condition that  the current liabilities be repaid (from personal incomes or a new loan), provided that the customer qualifies for the loan and has repaid 50% or more of the contractual amount. In this case, the loan will not be considered refinanced/restructured.