Agricultural (with Estate Collateration)

Loan purpose
Agricultural loan
Loan amount
The loan amount is conditioned by and related to:
purpose of the loan,
customer's creditworthiness,
loan security offered by customer,
loan risk assessment,
regulatory requirements set by Central Bank of RA and by international agreements.
Loan currency
AMD
USD
Annual interest rate
In case of AMD minimum 15%.
In case of USD minimum 13%.
Grace period
For loan amount 9 months
Loan term
Maximum 60 months(no minimum term)
Security
Chattels or real estate
Grant way
By cash
Cashless
Commission fee
Flat fee.
1% of loan amount (max. 100,000 AMD).
Loan arrangement is realized
“ARMECONOMBANK” OJSC branches
Decision Period
Up to 25 working days (In case of mortgage the loan is provided within 2 business days following the receipt of collateral registration right)
Attention! The interest accrues on the degressive loan balance. During the Loan Agreement validity course no interest rate change is intended.
Attention! The loan amount should make maximum 60% of the pledged estate appraised value.
Borrower requirements
Corporate entity.
Sole proprietor.
Loan redemption procedure
Monthly.
Equally (annuitant), or
Non-equally (differential).
Guarantee
The pledged chattels are subject to insurance. Security is realized by the insurance company licensed by RA CB, according to the tariff determined by the latter. The minimum of the pledged estate assessed value and loan amount serves as a basis for the security.
Pledged estate appraisal
Assessment is realized by any assessment organization licensed by RA legislation, according to the tariff determined by the latter.
Negative decision grounds
Negative assessment of the customer’s financial condition.
Insufficient profitability of the presented project, insufficient argumentation of the loan purpose.
Non-credibility of the presented documents.
Unacceptable guarantee.
Not presenting the required documents within the predefined timeframe.
Negative conclusion of the loan register.
Other basic reasons which according to the Bank assessment will hamper the loan repayment.
Penalties
Overdue Loan 0.2% of the unpaid amount for each overdue day
Overdue Interest 0.4% of the unpaid amount for each overdue day
Attention! It is possible to define a loan repayment flexible schedule depending on the peculiarities of the financed activity.
Attention! Early loan repayment is allowed for which no fines or penalties are charged.
Attention! In case of not making the interest and loan amount repayments on time, the pledged estate can be confiscated, and the information about the Borrower and/or the Guarantor(s) will be recorded in the loan register.
Attention! In case of not performing the loan liabilities and repaying the liabilities in the account of the collateral, in case of the collateral being not enough to repay the Borrower’s loan liabilities, it is possible to make liabilities repayment on the account of another property of the Borrower and/or Guarantor(s).
Documents presented by legal entities

1. Copy of State Register certificate, transcript on the executive authority is mandatory,
2. State Register statement on participants, replacement of the director, and amendments to charter. In case of joint stock companies, statement on shareholders from Central Depository of Armenia OJSC and State Register statement on replacement of the director, and amendments to charter.
3. The information listed in paragraph 1 is not required for corporate entities in case where the decision on borrowing may be made by the director;
4. Charter (reviewed),
5. Authority's decision on borrowing, and pledging property (necessary if the information listed in paragraph 2 is required),
6. Set of financial reports for the latest accounting period. If necessary, approved (sealed or stamped) by applicable tax authority (copy);
7. List of fixed assets (if necessary);
8. Tax code (copy); TIN;
9. Statement of settlements with State budget or statement on liabilities to State budget from the tax authority of relevant location (mandatory for loans exceeding AMD 10 mln or foreign currency equivalent thereof);
10. Statement of accounts receivable and payable (with breakdown if necessary);
11. Documents supporting the ownership right to the property offered as loan security;
12. Licenses (copy);
13. Passport (copy);
14. In case of pledging real estate, ownership certificate (copy);
15. In case of collateral owned by individual, certificate of marriage (divorce, death of spouse);
16. Bank account statement (if necessary);
17. Agreement (copy) with supplier and invoice for import of goods;
18. Statement on ban from Real Estate Cadastre Department (after lending decision).

Documents to be presented by sole entrepreneurs

1. Copy of State Register certificate,
2. Tax code (copy); TIN;
3. Statement of settlements with State budget (mandatory for loans exceeding AMD 10 mln or foreign currency equivalent thereof);
4. Statement of accounts receivable and payable (with breakdown if necessary);
5. Documents supporting the ownership right to the property offered as loan security;
6. Licenses (copy);
7. Passport (copy);
8. Certificate of marriage (divorce, death of spouse) (copy);
9. In case of pledging real estate, ownership certificate (copy);
10. Bank account statement (if necessary);
11. Agreement (copy) with supplier and invoice for import of goods;
12. Statement on ban from Real Estate Cadastre Department (after lending decision).

Attention! Changes in foreign currency exchange rates may have an impact on loan repayments for foreign currency loans.
Loan amount
Interest rate calculation procedure
Loan agreement termination
Pledge subject for the Bank
Overdue loan and overdue interest
Documents required for loan grant
Negative conclusion grounds on loan case are
Security
Pledged estate sales rules
Loan purpose
Agricultural loan
Loan amount
The loan amount is conditioned by and related to:
purpose of the loan,
customer's creditworthiness,
loan security offered by customer,
loan risk assessment,
regulatory requirements set by Central Bank of RA and by international agreements.
Loan currency
AMD
USD
Annual interest rate
In case of AMD minimum 15%.
In case of USD minimum 13%.
Grace period
For loan amount 9 months
Loan term
Maximum 60 months(no minimum term)
Security
Chattels or real estate
Grant way
By cash
Cashless
Commission fee
Flat fee.
1% of loan amount (max. 100,000 AMD).
Loan arrangement is realized
“ARMECONOMBANK” OJSC branches
Decision Period
Up to 25 working days (In case of mortgage the loan is provided within 2 business days following the receipt of collateral registration right)
Attention! The interest accrues on the degressive loan balance. During the Loan Agreement validity course no interest rate change is intended.
Attention! The loan amount should make maximum 60% of the pledged estate appraised value.
Borrower requirements
Corporate entity.
Sole proprietor.
Loan redemption procedure
Monthly.
Equally (annuitant), or
Non-equally (differential).
Guarantee
The pledged chattels are subject to insurance. Security is realized by the insurance company licensed by RA CB, according to the tariff determined by the latter. The minimum of the pledged estate assessed value and loan amount serves as a basis for the security.
Pledged estate appraisal
Assessment is realized by any assessment organization licensed by RA legislation, according to the tariff determined by the latter.
Negative decision grounds
Negative assessment of the customer’s financial condition.
Insufficient profitability of the presented project, insufficient argumentation of the loan purpose.
Non-credibility of the presented documents.
Unacceptable guarantee.
Not presenting the required documents within the predefined timeframe.
Negative conclusion of the loan register.
Other basic reasons which according to the Bank assessment will hamper the loan repayment.
Penalties
Overdue Loan 0.2% of the unpaid amount for each overdue day
Overdue Interest 0.4% of the unpaid amount for each overdue day
Attention! It is possible to define a loan repayment flexible schedule depending on the peculiarities of the financed activity.
Attention! Early loan repayment is allowed for which no fines or penalties are charged.
Attention! In case of not making the interest and loan amount repayments on time, the pledged estate can be confiscated, and the information about the Borrower and/or the Guarantor(s) will be recorded in the loan register.
Attention! In case of not performing the loan liabilities and repaying the liabilities in the account of the collateral, in case of the collateral being not enough to repay the Borrower’s loan liabilities, it is possible to make liabilities repayment on the account of another property of the Borrower and/or Guarantor(s).
Documents presented by legal entities

1. Copy of State Register certificate, transcript on the executive authority is mandatory,
2. State Register statement on participants, replacement of the director, and amendments to charter. In case of joint stock companies, statement on shareholders from Central Depository of Armenia OJSC and State Register statement on replacement of the director, and amendments to charter.
3. The information listed in paragraph 1 is not required for corporate entities in case where the decision on borrowing may be made by the director;
4. Charter (reviewed),
5. Authority's decision on borrowing, and pledging property (necessary if the information listed in paragraph 2 is required),
6. Set of financial reports for the latest accounting period. If necessary, approved (sealed or stamped) by applicable tax authority (copy);
7. List of fixed assets (if necessary);
8. Tax code (copy); TIN;
9. Statement of settlements with State budget or statement on liabilities to State budget from the tax authority of relevant location (mandatory for loans exceeding AMD 10 mln or foreign currency equivalent thereof);
10. Statement of accounts receivable and payable (with breakdown if necessary);
11. Documents supporting the ownership right to the property offered as loan security;
12. Licenses (copy);
13. Passport (copy);
14. In case of pledging real estate, ownership certificate (copy);
15. In case of collateral owned by individual, certificate of marriage (divorce, death of spouse);
16. Bank account statement (if necessary);
17. Agreement (copy) with supplier and invoice for import of goods;
18. Statement on ban from Real Estate Cadastre Department (after lending decision).

Documents to be presented by sole entrepreneurs

1. Copy of State Register certificate,
2. Tax code (copy); TIN;
3. Statement of settlements with State budget (mandatory for loans exceeding AMD 10 mln or foreign currency equivalent thereof);
4. Statement of accounts receivable and payable (with breakdown if necessary);
5. Documents supporting the ownership right to the property offered as loan security;
6. Licenses (copy);
7. Passport (copy);
8. Certificate of marriage (divorce, death of spouse) (copy);
9. In case of pledging real estate, ownership certificate (copy);
10. Bank account statement (if necessary);
11. Agreement (copy) with supplier and invoice for import of goods;
12. Statement on ban from Real Estate Cadastre Department (after lending decision).

Attention! Changes in foreign currency exchange rates may have an impact on loan repayments for foreign currency loans.
Loan amount
Interest rate calculation procedure
Loan agreement termination
Pledge subject for the Bank
Overdue loan and overdue interest
Documents required for loan grant
Negative conclusion grounds on loan case are
Security
Pledged estate sales rules
Last modified on Wednesday, 15 July 2015 10:52