FARM CREDIT ARMENIA
UNIVERSAL CREDIT ORGANIZATIONCommercial Cooperative
Target Group – Residents of the Republic of Armenia who are individuals may benefit from the "Berkarrat" loan type offered by "Farm Credit Armenia" UCO CC.
Maximum Loan Term – Loans for working capital acquisition are provided for a term of up to 9 months, and for fixed asset acquisition – for a term of up to 36 months.
Collateral – No collateral or guarantor is required for the loan.
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
Example:
Balance of the loan amount – AMD 1,000,000
Annual interest rate of the loan - 14%
Daily interest amount = 1,000,000 x 14 %/365 = 383.56
Size of penalties - In case of delayed loan payments, the client shall pay a penalty calculated at a rate of 0.13% per day on the overdue loan amount, interest, and service fee (if applicable).
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 of the Loan Principal and Accrued Interest is carried out through an annuity method. In the case of loans provided for the acquisition of working capital, repayment may also be made according to a flexible schedule.
The amounts paid for loan repayment are applied in the following order:
Penalties and fines,
Overdue amounts,
Service fee (if applicable),
Accrued interest,
Loan principal.
No additional fees are set for the loan.
When the customer makes loan and interest repayments through payment terminals of other banks and payment processing organizations, a transaction fee of 100–300 AMD may be charged per transaction.
Loan Application Approval – The loan is provided on-site and online for the purpose of purchasing goods from supplier companies cooperating with Farm Credit Armenia UCO CC. The loan approval decision is made by an automated system based on the customer's credit score. The decision becomes available to the customer within minutes via the Farm Credit Mobile application.
The loan is disbursed non-cash. The loan amount is transferred to the supplier’s bank account.
Factors for Loan Application Approval:
The customer’s creditworthiness and credit score meeting the organization’s requirements.
Factors for Loan Application Rejection:
Insufficient level of creditworthiness and credit score according to the organization’s requirements.
Documents Required to Obtain the Loan
An identity document and a Public Services Number (PSN).
The loan is processed on-site at the supplier’s place of business. The customer signs the loan agreement electronically via the Farm Credit Mobile application.
IMPORTANT: When applying for a loan, the lender will provide you and the guarantor(s) (if applicable) with an individual sheet outlining the essential terms of the consumer loan, which will include the specific terms of the loan offered to you.
During the term of the agreement, loan statements are provided via email every thirty days unless the customer chooses another communication method. Loan statements (including duplicates) are provided free of charge. The fees for providing certificates or references are set according to the applicable tariffs.
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 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.