Loans to legal entities

Loans provided within the framework of the Renewable Energy and Energy Saving

Currency

AMD

Borrowers

  • RA resident legal entities and individual entrepreneurs
  • Analysis of financial statement of the borrower should be in line with the Bank’s requirements

Purpose

In non-gasified and gasified communities:

  • Purchase of photovoltaic systems:
  • Purchase of water heaters

Limits

 

  • With pledge: AMD 3,000,001-50,000,000
  • Without pledge: (minimum 2 guarantees provided by physical individual or legal entity) AMD 1,000,000-3,000,000

Provision  method

Non-cash

Repayment period

Up to 96 months

Annual nominal interest rate

10 %

Pledge

  • Movable and immovable property
  • Monetary funds available on deposit or current accounts
  • Standard gold bars or scrap
  • Short term bonds issued by the government or other securities
  • If needed, along with other pledge the equipments to be purchases within the framework of the program can also be pledged
  • Additional condition - Personal guarantee provided by business founders/beneficiary owners is mandatory. Meanwhile, as additional security the Bank can also request other guarantee provided by physical individual and/or legal entity

Acceptable loan to value ratio

  • For immovable property and other fixed assets: up to 70% of the property value
  • For short term bonds issued by the government: up to 95% of the nominal price
  • For other securities: up to 70% of the evaluated price
  • For standard gold bars and scrap of precious metals: up to 95% of the value
  • Monetary funds (in case of deposit and current account): up to 90%
  • For equipment to be purchased: up to 50% of the evaluated price

Insurance

Upon need

Loan early repayment penalty

No penalty is applied

Penalty for loan principal and/or interest overdue

  • For overdue principal - 0,015 % daily
  • For overdue interest - 0.1% daily

Loan repayment method

Annuity

Requirements for the guarantors

  • RA resident legal entity, individual entrepreneur or physical individual
  • No overdue liabilities (including for the guarantees provided)
  • No any classification of credit facilities for the last 12 months, and the sum of total overdue days should not exceed 30 days 

Fees

Not applicable

State duties and other fees

  • State duties paid to the RA government: are paid for ratification and registration of the pledge agreement
  • Valuation fee for pledged securities: according to the tariffs defined by the independent valuating companies

Additional terms

In case of refinancing of loans provided to legal entities and individual entrepreneurs, 20% co-financing is done