Supply Chain Financing "Rich Milk"



300.000 - 40.000.000

Credit Sum

12 - 13 %

Credit Percent

12.43 - 15.13 %

Credit actual interest rate

3 - 84 Month

Credit duration




Credit Sum


Credit Percent


Credit actual interest rate

- Month

Credit duration

Farm Credit Armenia UCO CC provides the loan “Rich Milk” to the participants of the supply chain of “Golden Goat CJSC”, particularly to milk suppliers and to “Golden Goat” CJSC.
The loan is disbursed with a term of 3-36 months for obtaining working capital, and with a term of 24-84 months for obtaining property, plant and equipment. If at least 50% of the loan is for obtaining property, plant and equipment, it can be disbursed with the term defined for the property, plant and equipment.

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 0.13% 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

A free schedule can be defined for loan repayment, which is conditioned by:

-         Seasonal peculiarities of milk processing, which means that the principal repayments depend on the months when milk is processed.

-         Seasonal incomes obtained from other branches of agriculture 

A repayment schedule on annuity can be defined, if there are business activity incomes or other monthly incomes based on a financial analysis.



The loans with up to 1.5 million Armenian drams can be guaranteed by at least 1 person. 

- At least one of the liabilities should meet the criteria defined by the loan legislation of the CC (primary liability).

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. 

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%.

Other fee

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

A loan servicing fee is only required for the loans disbursed through the Millennium Challenge Account (MCA) and International Fund for Agricultural Development (IFAD) funds. 

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


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 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 loan “Rich Milk” 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

- Cases of customers incorrespondence to the loaning target group (Supplier, Processor)

- 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

-  Absence of at least 1 year experience of milk-processing contract with the processor and of experience in agriculture or other business sphere.

-  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.
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In case of non-purposeful use of the loan extended by MCA-Armenia Water to Market lending project resources the creditor has the right to review the loan nominal interest rate up to 20% annually in accordance with loan agreement.


The organization may review the current interest rate in case of changes of 2 and more percentage points of RA CB defined refinancing interest rate but no more than the doubling of CBA bank rate at present moment.

The customer can repay the loan before the date set in the contract. In case of full repayment of the loan, the borrower pays the positive difference of the interest rate paid when fully repaying the loan and the interest rate of the 90 days stated in the contract (with the exception of the loans financed by MCA-Armenia Water to Market lending project). 
In case of repayment of the loans financed by MCA-Armenia Water to Market lending project, the borrower pays the interest rate factually calculated at the time of loan repayment.


The loans provided by means of MCA-Armenia Water to Market lending project are extended only in case of affirmative conclusion.


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.