SME Loan for Agricultural Raw Material Procurement

The loan is provided in AMD:

• Loans are provided to legal entities and sole proprietors
• Minimum amount – 3,000,000 AMD
• Maximum amount - 30,000,000 AMD
• Term – 6-60 months
• Annual nominal interest rate 14%, up to 10% of which can be subsidized by the Government of Armenia
• Annual effective interest rate – 16%
• Disbursement method - cashless, transferred to client's bank account
• One-time disbursement fee - not applied
• Monthly servicing fee - not applied
• Early repayment penalty - not applied
• Application review fee - not applied
• Penalties and fines - 0.12% daily on overdue principal, 0.12% daily on overdue interest
• Repayment schedule - flexible adapted to client's cash flows
• SME loans ≤5,000,000 AMD can be provided with guarantee only or with collateral
• SME loans >5,000,000 AMD provided exclusively with collateral. Real estate LTV ≥80%; movable ≥60%

For possible additional fees, see details - Loan Tariffs

Previous loan terms here

• Full subsidy opportunity in border communities by the Government of Armenia
• Up to 10% interest subsidy in other communities by the Government of Armenia
• To promote legal entities and sole proprietors, the Company offers flexible repayment schedules with seasonal principal payments possible
• In case of real estate collateral, pledge agreements up to 20 years, allowing multiple loans without extra costs
• Quick response - application review and decision within up to 3 business days

Sole Proprietor Borrower

• Identity documents (Armenian passport/ID card)
• Public services number or statement of non-receipt
• Statement from state register
• License (if licensed)
• Tax authority statement on obligations
• Last year's tax reports electronically and acceptance notifications
• Ownership certificate or lease agreement for premises

Legal Entity Borrower

• Copy of state registration certificate (with inserts) and tax code
• Identity documents of founders, director and chief accountant
• Copy of charter
• Statement from state register
• License (if licensed)
• Decision of authorized body on taking the loan
• Tax authority statement on obligations
• Last year's tax reports electronically and acceptance notifications
• Ownership certificate or lease agreement for premises
• The Company may request additional documents under "Know Your Customer" principle

If Guarantor required

• Guarantor's identity documents
• Public services number or statement
• Income documents if required
• For legal entity: charter, registration, director passport, tax code

If Collateral required

• Ownership certificate
• Basis documents if needed
• Statement on no encumbrances
• Owners' identity documents and public services numbers
• Marriage certificate and spouse documents if married
• Additional documents may be required

Documents ≤15 days old

• Loans provided to legal entities and sole proprietors for:
• Procurement of grapes, fruits-vegetables, milk and other agricultural raw materials
• Purchase of canning jars and containers

Attention: YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL INSTITUTION IN YOUR PREFERRED WAY — BY MAIL OR ELECTRONICALLY. ELECTRONIC COMMUNICATION IS MOST CONVENIENT: AVAILABLE 24/7, NO RISK OF PAPER LOSS, ENSURES CONFIDENTIALITY.

Attention: COLLATERAL MAY BE FORECLOSED IF YOU FAIL TO MAKE TIMELY INTEREST AND PRINCIPAL PAYMENTS. IF COLLATERAL VALUE IS INSUFFICIENT, OBLIGATIONS WILL BE COVERED FROM YOUR OTHER PROPERTY.

Attention: IF YOU FAIL TO FULFILL OBLIGATIONS, THE LENDER WILL SEND INFORMATION TO THE CREDIT BUREAU AFTER 3 BUSINESS DAYS, FORMING YOUR CREDIT HISTORY. YOU HAVE THE RIGHT TO RECEIVE YOUR CREDIT HISTORY FROM THE BUREAU ONCE A YEAR FREE OF CHARGE.

Attention: POOR CREDIT HISTORY MAY PREVENT YOU FROM OBTAINING LOANS IN THE FUTURE.

Attention: HOW TO IMPROVE POOR CREDIT HISTORY: AVOID EVEN ONE-DAY DELAYS, FULLY REPAY PAST OVERDUE PAYMENTS, AVOID GUARANTEEING UNRELIABLE PERSONS.

Attention: LOAN INTEREST IS CALCULATED BASED ON NOMINAL RATE. NOMINAL RATE SHOWS ANNUAL INTEREST COST ON OUTSTANDING BALANCE. INTEREST IS CALCULATED DAILY ON ACTUAL OUTSTANDING PRINCIPAL. CALENDAR YEAR IS USED.

Attention: Nominal interest rate is the rate announced by the financial institution on which interest payments are calculated.

Effective interest rate shows what the nominal rate would be if it included all mandatory fees.

EFFECTIVE INTEREST RATE CALCULATION CAN BE FOUND HERE.

Attention: LOAN INTEREST RATE CANNOT EXCEED TWICE THE BANK INTEREST RATE SET BY THE CENTRAL BANK OF ARMENIA.

FOR GUARANTORS

• If the borrower fails to fulfill obligations, you will pay instead, your credit history will worsen, and you may lose your property.
• You will receive copies of loan, guarantee agreements and repayment schedule.
• Communication will be in your chosen method.
• You will be notified 7 days in advance of contract changes.
• SMS reminders will be sent; in case of delay — notified within one day.
• You have the right to request loan balance information and recover paid amounts from the borrower.
• Positive credit history plays an important role in loan decisions. Formed by timely repayments and targeted use. Details at www.abcfinance.am and www.acra.am

• Loans are provided to
  1. sole proprietors and legal entities engaged in trade in Armenia
  2. sole proprietors aged 20-65
  3. borrower own name/benefit; third party prohibited
  4. no overdue at application; total overdue days last 6 months ≤15
• Issued at office/branches
• Decision max 3 banking days
• Disbursed max 3 banking days on positive
• Cashless
• Positive factors: creditworthiness, stable income, sufficient collateral, positive history, long experience
• Rejection factors: poor indicators, insufficient income, delays, high burden, opinions
• Credit history reflects behavior. Positive important. Formed timely targeted. Details www.abcfinance.am www.acra.am
• Inquiry mandatory. New applications affect score; monitoring low/no. Inquiries throughout term
• Statements free
• NO EARLY REPAYMENT PENALTIES FOR LOANS UP TO 5 MILLION AMD