Loans to legal entities

1.       

Borrowers

RA resident legal entities, sole proprietors

2.      

Currency

Armenian drams, US dollars, Euros

3.      

Loan purpose

Replenishment of working capital,

Acquisition of fixed assets,

Financing operating expenses,

Repayment of accounts payable,

Other business-related investments.

4.      

Loan limit

AMD 5,100,000 – AMD 30,000,000 (inclusive) or a foreign currency equivalent

5.      

Repayment period

Up to 60 months

6.     

Nominal interest rate per annum

For loans

• in AMD: 13.5%-14.5%
• in USD: 9.5%-10.5%
• in Euros: 8.5%-9.5%

7.       

Actual interest rate per annum

8.72%-17.89%

8.      

Type of a line of credit

Revolving

9.      

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

1%

10.     

Security

Surety bond

11.     

Surety

RA resident legal entities, individuals

12.     

Surety activity requirement

• For legal entities – at least a 12-month registered business activity.
• For individuals – stable income sources (salary, leased out property, dividends, etc.) and/or the individual is a real property owner. 

13.     

Loan/line of credit disbursement method

Non-cash

14.     

Repayment method for loans

• Annuity
• Flexible scheme

15.     

Fees

Fee for a loan application review – not applicable

Loan account service fee – to be paid in a lump-sum at 0.5% of the contractual amount

Fee for cash withdrawal from the bank account – according to the current fees.

16.     

Penalty for loan prepayment

If prior to the end of the first half of the contract period, the borrower makes a payment exceeding the monthly scheduled principal amount, they will pay a penalty at 5% of the excess amount.     

Not applicable for lines of credit.

17.     

Penalty for overdue liabilities

The Bank will have the right to charge late payment penalties starting from the first day the payment is overdue:  

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