AMD

Currency

300.000 - 3.000.000

Credit/Leasing Sum

12 %

Credit/Leasing Percent

12.68 %

Credit/Leasing actual interest rate

60 - 72 Month

Credit/Leasing duration

USD

Currency

Credit/Leasing Sum

Credit/Leasing Percent

Credit/Leasing actual interest rate

Month

Credit/Leasing duration


Renovation loans, which are provided by the state support program for energy efficient renovation works, are subsidized in such amount that:

- The loan interest rate for the property under renovation in the border or high mountain area will be 0%,

 - The loan interest rate for the property under renovation in a rural settlement that is not a border settlement will be 2%,

- The loan interest rate for the property under renovation in an urban settlement that is not a border settlement will be 3%,

- The loan interest rate for properties under renovation in Yerevan will be 5%.

- In case of early repayment under the mentioned program, no early repayment penalty is required.

 

Target group - "Farm Credit Armenia" UCO CC Individuals who are members-shareholders of the cooperative can apply to receive loans for the repair of an apartment/residential house. Citizens and legal entities engaged in agricultural production, processing and other related activities, commercial, manufacturing or other entrepreneurial activities can become members-shareholders of the cooperative.

Credit percent calculate example

The actual annual interest rate shows how much the loan will cost you if you make the interest payments and other payments in the specified terms and amounts.

Example of loan interest calculation

Daily interest amount = Loan amount balance x annual interest rate/365 For example:

Balance of the loan amount: - 2,000,000 AMD

Annual loan interest rate: - 14%

Daily interest = 2,000,000 x 14 %/365 = 767.12


Size of penalties - In case of delays in loan interest or principal payments, the client pays a penalty calculated on the overdue amount (overdue loan amount and overdue loan interest) at a rate of 0.13% for each day of delay until the 270th day of successive day of being overdue. From the 271st day of continuous delinquency, the calculation of penalties ceases.

Possibility of early repayment – the customer can repay the loan earlier than the term specified in the contract. No penalty/penalty applies for early repayment of loans.

Repayment frequency

In the event that more than 50% of the total income of the client and his family members is derived from agriculture, a free schedule can be set for repayments of the principal amount of the loan and the interest calculated on it, taking into account the cash flows arising in the client's economy as the main source of repayment of the obligation. : In case of setting a free schedule, the grace period for the repayment of interest payments cannot be more than 6 months, and for the repayment of the principal amount of the loan - more than 12 months. In all other cases, a schedule of equal monthly repayments (annuity) of the loan and the interest calculated on it is defined. When setting a schedule of equal monthly repayments, taking into account the cash flows arising in the client's economy, a grace period of up to 3 months can be set for the payment of principal amounts of the loan.

Amounts paid for loan repayment are paid in the following order:

1. Penalties, fines,

2. Overdue interest,

3. Overdue principal amount,

4. Accumulated interest,

5. Principal amount of the loan.


Collateral

Security - Colleteral, guarantee. The subject of pledge can be:

- real estate (production areas, buildings, constructions, private houses, apartments, land plots, fishponds, gardens, other real estate),

- vehicles: passenger cars and trucks,

- agricultural machinery,

- construction equipment,

- production lines, equipment, - large and small cattle, sows.

The real estate mortgage agreement is subject to notarization. The lien on real estate and vehicles is subject to state registration.

The value of the collateral in relation to the loan cannot exceed 80%. The guarantor must own a property or a share of any real estate, or must be a legal employee of the RA state or any international organization operating in the RA, or any organization with a good reputation in the RA business environment, or be a client of VC and a VC. who has a financial analysis of his solvency not older than 6 months.

FOR THE GUARANTEES.

We inform you that:

- If the borrower does not fulfill his obligations, then you will pay for him, your credit history will deteriorate and you may be deprived of your property.

- You will be provided with a sample loan, guarantee agreement and repayment schedule.

- Communication will be carried out by the method chosen by you.

- You will be notified 7 days in advance about the change in the terms of the contract.

- A reminder will be sent 1 day in advance regarding the existing obligation.

- In case of delay in repayment of the loan, you will be informed about it after one day at the latest.

 

THE GUARANTEE HAS THE RIGHT:

- Request information about the amount of the loan balance from the lender at any time. 

- To recover from the borrower the sums paid by you.


Other fee

Loan service fee: 0-0.1% per month, depending on the source of financing.

The loan service fee is calculated on the actual loan balance.

Loan service repayments are determined on the day of each loan repayment schedule of loan principal / interest rate.

-     In case of cash operations with commercial banks and payment organizations, the customer may be required to pay cash withdraw fee up to 0.25% of the amount.

-     When repaying the loan principal and interest by the customer through the payment terminals payment organizations, a commission fee of 100-300 AMD will be charged for each transaction.

In case of collateralized loans, possible costs of the customer for the services provided by third parties.

Property Pledging Articles

Property Pledging Costs

Real Estate

 Vehicles 

Other movable property

Pledge value estimation 

15,000 – 80,000

 

 

 Certificate on pledge release from the ban

10,000

3,000

 

  Notarization of the agreement 

10,000 – 20,000

 

 

 State registration of the right for the pledge 

3000 – 26,000

3,000

2,000

 

Credit/Leasing bid confirmation

Approval of the loan application – The decision regarding the loan application is taken within maximum 7 working days after receipt of the application. The client is informed about the decision regarding the loan application within one banking day.

The loan is disbursed within one banking day following submission by the client of the full package of the required documents and completion of the pledging process.

Loans with the funds of MCA Armenia Foundation are provided in case of positive conclusion of the Foundation.

The loan amount is provided in non-cash manner, via banks and payment and settlement organizations operating in the RA.



Factors for approval of the loan application

- Compliance of the client’s creditworthiness level with the requirements of the organization;

- Positive credit history;

- Conformity of the loan security level;

- Conformity of the purpose of the loan.

 

Factors for rejection of the loan application

-  Inadequate level of the client’s creditworthiness, based on the requirements of the organization;

-  Submission of unreliable data by the client;

-  Negative credit history; 

-  Non-conformity of the pledge, guarantors;

-  Non-conformity of the purpose of the loan. 

 

Documents required to obtain a loan

-  Personal identification document;

-  PSN or a reference on absence of a PSN;

-  Documents evidencing the right of ownership for the collateral item offered by the client;

-  Copies of passports of the guarantors and pledgers.



Credit Calculator

The answer is not final because it is calculated individually.
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Attention

. You have the right to communicate with the credit institution in the way you prefer, by mail or electronically. Receiving information electronically is the most convenient. It is available 24/7, free from the risks of paper information loss and ensures privacy. In the case of foreign currency loans, loan repayments may be affected by differences in foreign currency exchange rates.

. The actual interest rates of loans in US dollars were calculated based on the average exchange rate of the US dollar published by the Central Bank of Armenia on 26/02/2021. The actual annual interest rate may change depending on the change in the magnitude of the exchange rate published by the Central Bank of Armenia.

. In case of a change of 2 or more percentage points in the bank interest calculation rate set by the Central Bank of the Republic of Armenia, the organization can revise the current loan interest rate, but not more than twice the current bank interest rate.

. Your property (home, car, or other) may be seized if you fail to make your interest and loan payments on time.

. In case of non-fulfilment or incomplete fulfillment of the obligation by you, the lender sends the data to the credit bureau after 3 working days, where your credit history is formed. You have the right to get your credit history from the credit bureau once a year for free.

Attention: a bad credit history can prevent you from getting a loan in the future.

. In case of non-fulfillment of obligations by the borrower, the obligations can be paid off at the expense of other property of the borrower, if the collateral is not sufficient to repay the obligations at the expense of the collateral (at the expense of the money received from the sale of the subject of the collateral).

 

In case of non-performance of obligations for the repayment of credit expenses (at the expense of the amount obtained from the realization of collateral), the obligation may be redeemed at the expense of lessee’s other property.