Loans to legal entities

1.         

Currency

Armenian drams, US dollars, Euros

2.         

Eligibility

RA resident legal entities and sole proprietors

3.         

Type of financing

Loan

Loan tied up to an existing business loan with another lender

4.         

Loan purpose

Transferring the existing business loan (overdraft, line of credit) to the Bank

·       Acquisition of fixed assets

·       Replenishment of working capital

·       Covering operational expenses 

·       Repayment of accounts payable

·       Other investments.

5.         

Minimum and maximum amounts

AMD 15,000,000 – AMD 500,000,000 or a foreign currency equivalent

AMD 5,000,001-AMD 100,000,000 or a foreign currency equivalent

6.         

Repayment period

36-120 months

12-60 months

7.         

Nominal interest rate per annum

For transferred loans: existing interest rate minus 2 p.p., but no less than:

Without cashback:

AMD – starting at 12%, 

USD – starting at 9%,

Euros – starting at 8%

With cashback:

AMD – starting at 12.5%, 

USD – starting at 9.5%,

Euros – starting at 8.5%

AMD - 13%,

USD -  9.5%,

Euros- 8.5% 

8.         

Principal grace period (optional)

Up to 6 months

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9.         

Loan disbursement method

Non-cash

Cash/non-cash

10.       

Cash back

Up to 2% of the contractual amount, but no more than AMD  2,000 000 or a foreign currency equivalent

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The transferred loan will qualify for a cashback bonus if its repayment period is at least 60 months.

11.       

Loan security

Main security:

·          Assets pledged as collateral for the transferred/refinanced loan, such as: real property, moveable property, including vehicles (if the loan to be transferred is secured by real property pledged with another financial institution, the  inclusion of the real property in the collateral ‘basket’ of the refinanced loan is mandatory),

·          Surety bond (if appropriate).

Additional security:

·          Other real property, vehicle or other fixed assets,

·          Funds in deposit or current accounts,

·          Standard gold bar or gold scrap,

·          Short-term government bonds or other securities

·          Working capital and finished goods (with consideration of the liquidity level of other pledged assets or loan-to-value ratio, loan period, customer rating, etc.)

12.       

Surety

RA resident legal entities, individuals

13.       

Loan product subject to transfer/refinancing

Loan products with other financial institutions subject to transfer/refinancing.

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14.       

Fees and charges

·       Fee for loan application review – N/A,

·       Lump-sum fee for loan disbursement – N/A,

15.       

Cash withdrawal from loan account

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According to the Bank's terms and fees

16.       

Repayment method

• «Annuity» scheme

• «Flexible» scheme

• if the loan includes a principal grace period: principal payments upon expiration of the mentioned period; while interest payments will be made on a monthly basis.

17.       

Penalty for late payment of the principal and interest

The Bank will have the right to charge penalty for each day the credit liabilities are past due:

·          For past due principal amount - 0.015% per day,

·          For past due interest - 0.1% per day.

18.       

Penalty for early repayment of the principal amount

For loans without cashback: If the borrower repays more than envisaged under the repayment schedule, the Bank will impose a penalty at 5% of the amount exceeding the monthly principal amount.

For loans with cashback: In the event of repayment exceeding the monthly principal amount defined by the Contract schedule, a penalty shall be charged in the amount of 7% of the sum exceeding the scheduled monthly payment for the entire term of the loan.

19.       

Fees subject to reimbursement by the Bank

·          Fee for unified certificate issued by the State Real Estate Cadastre at the RA Government only for the real property pledged as security for the refinanced loan. Any time after it, if the customer applies for the unified certificate, the fee payment will be the responsibility of the customer.

Except for the cases when the customer wishes to register the real property faster than the standard procedure.

·          Fee for notary certification of the real property documents securing the refinanced loan.

·          Fee for registration of the Bank's right arising from the collateral agreement – only for the real property pledged as security for the refinanced loan.

·          Appraisal of the real property pledged as the security for the refinanced loan.

20.       

Internet banking/Mobile banking (IB/MB)

Free Internet/Mobile banking services to new customers of the Bank, each device  may be accessed by 3 users for 3 years.

21.       

Visa Business card

Issuance of a card and free account service for 3 years. If replaced, card service will be implemented pursuant to the Bank’s fees effective as of that date.

Sole proprietors must be RA citizens, as to a legal entity, its director, 10% and more of its participants and the beneficial owner must by RA citizens.