Gardening Loan

AMD or equivalent USD


1.000.000 - 40.000.000

Credit/Leasing Sum

2.5 - 8 %

Credit/Leasing Percent

2.51 - 8.29 %

Credit/Leasing actual interest rate

3 - 84 Month

Credit/Leasing duration




Credit/Leasing Sum


Credit/Leasing Percent


Credit/Leasing actual interest rate

- Month

Credit/Leasing duration

Target group - "Farm Credit Armenia"  UCO CC “Horticultural Credit Product” provides business owners who own or lease 0.3 - 3 acres grape, apple, apricot, peach, pear, plum and walnut orchards in the regions of Armenia, as well as those business owners who represent a loan program for the purpose of establishing plantations of the mentioned fruit species. The credit can be used by the shareholders who are members of the cooperative.

Membership procedure of "Farm Credit Armenia" UCO CC

Maximum loan period: - In the case that working capital is up to 20% of the loan amount, the maximum term of the loan can be: full harvest period of a specific fruit type + 3 years.

- In the case that working capital is more than 20% of the loan amount, the maximum term of the loan may be the full yield period of a specific fruit type + 1 year.

The loan is provided in a lump sum or in stages.

The minimum amount of own investment:

For vineyards, at least 40%,

For other crops: 20%.

Expenses to be financed

Fixed assets:

-         Planting material for grapes, apples, apricots, peaches, plums, walnuts and pears

-         Irrigation systems

-         Means of protection against hail, frost, frost and birds

-         Techniques and mechanisms necessary for planting, care and cultivation of the garden, including Garden plows (for vineyard only),

  1. Vineyard ploughs 
  2. Medium and low-power tractors
  3. Tractor supplements:

-     Ploughs for soil cultivation and loosening

-     Furrow cutting tools (only for planting)

-     Garden cultivators

-     Gardening chisels

-     Tubular or cross-metallic rakes, markers (only for planting)

-     Automotive or supplying sprinklers

-     Planters (only for planting)

-     Pesticides’ fertilizers

  1. Sprinklers with engine in case of 0.3-0.5 ha
  2. Gardening, hilling, weeding and other tools
  3. Trailers (carriages) and trunks (bunkers)

-     other means, similar to equipment for supplying, conserving and transportation

 Working Capital

  • agricultural works
  • vaccines, mineral and organic fertilizers
  • medical and agrochemical means
  • irrigation expenses
  • other expenses

Credit percent calculate example

The interest accrued to the loans is calculated towards the actual balance of the loan, at nominal interest rate, assuming that a year consists of 365 days.

The annual actual interest rate shows the cost of the loan for you in case if you pay the interest amount and make other payments according to the specified schedule and sizes. 

Example of loan interest calculation


Annual interest amount = balance of the loan amount x annual interest rate /365


Balance of the loan amount – AMD 2,000,000

Annual interest rate of the loan - 14%

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

Size of penalties - In case of delays in repayment of the loan interest or principal amount, the client pays penalty of 0.3% of the overdue amount (overdue principal amount and overdue interest amount of the loan) for each day of delay, until the 270th successive day of being overdue. Starting from the 271st successive day of being overdue, calculation of penalties ceases.

Possibility of early repayment – The client may repay the loan before the deadline specified in the agreement. Except if the loan is disbursed with the funds provided by the MCA Armenia Foundation, as well as, irrespective of the fund, except for agricultural loans with an amount up to AMD 2 million and its equivalent in foreign currency, when repaying the loan in full, the borrower pays penalty for early payment, in the size specified by the tariffs.

In case of agricultural loans disbursed with the funds provided by the MCA Armenia Foundation, as well as, irrespective of the fund, in case of agricultural loans with an amount up to AMD 2 million and its equivalent in foreign currency, no penalty for early payment of loans is charged.

Repayment frequency

Methods of principal repayment – free (individual), on annuity, equal repayments
The schedule of principal repayments is formed individually, according to which the principal repayments start at the stage of harvest consumption and correspond to the financial flows of the client.
By the client’s consent a standard schedule can be defined with monthly, 3-months or 6-months repayments.

An additional period for interest rates payment is not defined, the interests are paid monthly.

Additional repayment period is defined:
-          Planting new seed plots till conversion to a full productivity and a consumption term.
-          Technological renovation of existing gardens, till harvesting and consumption term of maximum 12 months.
Technological renovation of existing newly planted gardens, till their conversion to a full productivity and a consumption term.


Security - Collateral, guarantee.

The following can be accepted as collateral items:

-         real estate (production areas, buildings, houses, apartments, land plots, fish ponds, gardens, and other real estate);
-         vehicles – passenger cars and trucks;
-         agricultural machinery;
-         construction machinery;
-         production lines, equipment;
-         large and small cattle, sows.

The agreement for pledge of real estate is subject to notarial verification. 
The right of pledge for real estate and vehicles is subject to state registration.

The loan to collateral ratio cannot exceed 80%.

The guarantor should possess property or a share in any immovable property that belongs to him/her through the ownership right or should be a legitimate employee of any state or international organization operating in the RA, well-known in the business environment and having good reputation, or should be a CO client, with the CO having financial analysis regarding the client’s solvency, performed not more than 6 months before.

Other fee

-     - 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


Other movable property

Pledge value estimation 

15,000 – 80,000



 Certificate on pledge release from the ban




  Notarization of the agreement 

10,000 – 20,000



 State registration of the right for the pledge 

3000 – 26,000




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.

Before signing loan agreements, in case of Gardening loan with an amount up to AMD 5 million and its equivalent in foreign currency, the client is provided with an Individual leaflet, in accordance with the CBA’s Regulation 8/05 “PROCEDURE, CONDITIONS, FORMS, AND MINIMUM REQUIREMENTS FOR COMMUNICATION BETWEEN THE BANK AND DEPOSITOR, LENDER AND CONSUMER”.

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


-   Copy of the legal entity’s/private entrepreneur’s state registry certificate and the copy of TIN

-   Copy of the identification document of the legal entity’s director

-   Copy of the legal entity’s Charter

-   Statement from the state register book about the legal entity

-   Copy of the ownership certificate of the legal entity’s/private entrepreneur’s  place of activity or its renting agreement

-   Decision of the legal entity’s founders on loan disbursement

-   Copies of identification documents of the legal entity’s founders and other relevant people.

Credit Calculator

The answer is not final because it is calculated individually.
  • Credit sum
  • Credit Percent
  • Credit duration (month)

. 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 17/02/2023. 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.