Financial lease (leasing)



300.000 - 40.000.000

Credit Sum

10 - 12.9 %

Credit Percent

10.38 – 13.69%

Credit actual interest rate

6 - 72 Month

Credit duration



600 - 80.000

Credit Sum

9 - 12 %

Credit Percent

9.97 - 12.68 %

Credit actual interest rate

6 - 72 Month

Credit duration

Target group  applications for leasing are accepted by “Farm Credit Armenia” UCO CC from private individuals and legal entities engaged in agriculture in the regions of the RA, who are members of “Farm Credit Armenia” cooperative. Member-stockholders of the cooperative can be private individuals and legal entities engaged in agricultural production, processing of agricultural products, and other related activities, commercial, industrial or other business.

In particular cases the leasing can be provided to the non-members of the cooperative according to the committee decision.

The following plant, property and equipment that are sold in the primary market can be subject to leasing:

-         Tractors, agricultural machinery, equipment

-         Manufacturing production-lines and equipment

-         Construction equipment

-         Motor transport

-         Other property, plant and equipment


The minimum prepayment for leasing is set 20% of the lease object value .By the Credit Committee decision, the leasing application can be approved with less prepayment (up to 0%), but in case of prepayment less than 20%, the lessee must submit additional collateral or guarantees if the leasing value exceeds 1,000,000AMD.

Upon the termination of the leasing contract, the lessee has the opportunity to obtain the lease object as his/her property with the price of 0.5% of the leasing value, but no more than 15,000 AMD. Leasing interest is calculated on the actual balance of the principal amount, assuming a nominal interest rate of 365 days per year.

The leasing transaction with the funds of MCA-Armenia are signed in condition of a positive conclusion by the fund.

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.


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

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.


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. Early repayment penalties may be set by the cooperative's tariffs


Repayment frequency

Depending on the customer’s cash flow monthly equal repayments, equal principal repayments, quarterly or 6 month periods of repayments can be defined.


Security - An additional security may be required by the decision of the Credit Committee: 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 bid confirmation

Leasing Application Confirmation

The decision on leasing application is made within 15 days after receiving the application. The customer is informed about that on the same day.


Factors for Confirming the Leasing Application

-   presence of actual activity in the regions of RA

-   correspondence to the requirements of financing programs and funds

-   correspondence of paying capacity to the requirements defined by the company



Factors for Rejecting the Leasing Application

The applicants who do not meet the above mentioned requirements for leasing or when the solvency of the applicant is not sufficient, the applicants cannot use the lease services provided by the company.

Upon the applicant’s wish the company can present a written rejection letter.



Documents Required for Leasing:

For legal entities:

-   Copy of the state registry certificate

-   Copy of the company foundation contract

-   Copy of the company legislation

-   Financial statements

-   Founders’ decision on pledging the company property

-   Copies of property certificates

-   Statement from the order of appointment of the director or the order copy

-   Copy of the director’s identification document

-   In case of pledging equipment, the passports of those

-   In case of pledging vehicles, copies of their technical passports


For physical entities:

-  Leasing application

-  Identification document, social security card/public service identification number or a statement of its absence

-  Documents stating property of the pledge as an additional liability

-  In case of pledging equipment, the passports of those

-  In case of pledging vehicles, copies of their technical passports

-  Statements of income (salary, etc.)

Credit Calculator

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

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.