The interest rate of the loans provided for the purchase of devices, equipment, and components within the framework of the "Economy Modernized Measure" program is subsidized at the rate of 8 percentage points per year for 42 months.
Target group - "Farm Credit Armenia" UCO CC members who have been operating in the given field for at least 3 months can apply for small loans. 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.
Loan interest is calculated on the actual balance of the loan with a nominal interest rate, assuming 365 days a year.
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
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 - depending on the client's cash flows, monthly equal repayments, equal repayments of the principal amount of the loan or a free schedule can be set. It is possible to set a grace period for principal repayment, which cannot exceed six months in every twelve months.
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.
Assurance - Warranty.
The guarantor must own property or a share of any real estate, or must be a legal employee of the RA state or any international organization operating in RA, or any organization with a good reputation in the RA business environment, or be a customer of the cooperative and present in the cooperative. be 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 GUARANTEEHAS 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 for the loan, as well as other losses incurred on behalf of the borrower.
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.
Approval of the loan application–The decision on the loan application is made within 7 working days after receiving the application. The customer is informed about the decision regarding the loan application within 1 banking day. The loan is provided within 1 banking day after the client submits the complete set of documents necessary for lending and signs and validates the relevant contracts. Loans with the funds of the MCA-Armenia Fund are provided in the presence of a positive conclusion from the fund. The loan amount is provided in a non-cash way, through RA banks and settlement organizations.
ATTENTION: When applying for a loan, the lender will provide you, the guarantor(s) (if any) with an individual sheet of essential terms of the consumer loan, in which the individual terms of the loan to be granted to you will be presented.
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.
. 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.