Commercial Loan

Loan purpose
Loans provided for economic, commercial, service rendering, business expansion and development purposes.
Loan type
Micro loans: up to 6 mln. AMD or other equivalent currency,
Small loans: from 6 mln. to 33 mln. AMD or other equivalent currency,
Medium loans: from 33 mln. to 60 mln. AMD or other equivalent currency,
Large loans: from 60 mln. to more AMD or other equivalent currency.
Activity period/tenor
In case of trade no less than 3 months prior.
In case of production and service field no less than 6 months.
Loan amount
The provided loan amount is conditioned and connected with:
Loan purpose,
Customer's creditworthiness,
Loan security proposed by the customer,
Loan risk assessment,
Normative field requirements determined by the RA Central Bank and international agreements.
Loan currency
AMD
USD
Euro
Annual interest rate
Starting from 15% in AMD.
Starting from 12% in other currency.
Loan term
Maximum 7 years for large and medium loans.
Maximum 5 years for small and micro loans.
Security
Real estate,
Transportation means,
Other security means acceptable by the Bank.
Grant way
By cash,
Cashles,
Flat fee,
In stages.
Commission fee
Without commission fees
Decision Period
For large loans up to 25 working days.
For medium, small and micro loans up to 20 calendar days.
Attention! The loan amount should make maximum 75% of the pledged estate appraised value.
Borrower requirements
Resident corporate entity.
Sole proprietor.
Loan redemption procedure
Monthly.
Equally (annuitant), or
Non-equally (differential).
Guarantee
Mandatory in case of transportation means.
In case of real estate while presenting the claim on the part of the Bank.
Insurances are realized by the insurance company having permission (license) from RA CB according to the tariff defined by the latter.
Pledged estate appraisal
In case of real estate and chattels assessment is realized by any assessment organization licensed by RA legislation, according to the tariff determined by the latter.
Negative decision grounds
Inadequacy of the customer’s financial condition analysis results to the standards of this procedure and other internal legal acts at the moment of applying.
Insufficient profitability and high risk of the presented project.
Insufficient argumentation of the loan purpose.
Non-credibility of the presented documents.
Insufficient liquidity of loan security.
Pollution or damage to the environment caused by customer’s activity.
Other reasons which according to the Bank assessment will hamper the loan repayment.
Customer’s negative credit history can also serve as a basis for negative conclusion on loan lending.
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! Minimum in the loan amount, maximum in the amount of the collateral assessed value.
Attention! It is possible to define a loan repayment flexible schedule depending on the peculiarities of the financed activity. Early loan repayment is allowed for which no fines or penalties are charged.
Attention! Early loan repayment is allowed for which no fines and penalties are charged.
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 2 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. Statement from the real estate Cadastre Department about barrage (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. Statement on ban from Real Estate Cadastre Department (after lending decision).

Attention! As an additional loan security means the Bank may also require guaranty of one or more persons.
Attention! In case of failure to repay the interest and the principal on time, the mortgaged property may be confiscated, and the information about the Borrower and/or the Guarantor/s will be recorded in the loan register.
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
Loans provided for economic, commercial, service rendering, business expansion and development purposes.
Loan type
Micro loans: up to 6 mln. AMD or other equivalent currency,
Small loans: from 6 mln. to 33 mln. AMD or other equivalent currency,
Medium loans: from 33 mln. to 60 mln. AMD or other equivalent currency,
Large loans: from 60 mln. to more AMD or other equivalent currency.
Activity period/tenor
In case of trade no less than 3 months prior.
In case of production and service field no less than 6 months.
Loan amount
The provided loan amount is conditioned and connected with:
Loan purpose,
Customer's creditworthiness,
Loan security proposed by the customer,
Loan risk assessment,
Normative field requirements determined by the RA Central Bank and international agreements.
Loan currency
AMD
USD
Euro
Annual interest rate
Starting from 15% in AMD.
Starting from 12% in other currency.
Loan term
Maximum 7 years for large and medium loans.
Maximum 5 years for small and micro loans.
Security
Real estate,
Transportation means,
Other security means acceptable by the Bank.
Grant way
By cash,
Cashles,
Flat fee,
In stages.
Commission fee
Without commission fees
Decision Period
For large loans up to 25 working days.
For medium, small and micro loans up to 20 calendar days.
Attention! The loan amount should make maximum 75% of the pledged estate appraised value.
Borrower requirements
Resident corporate entity.
Sole proprietor.
Loan redemption procedure
Monthly.
Equally (annuitant), or
Non-equally (differential).
Guarantee
Mandatory in case of transportation means.
In case of real estate while presenting the claim on the part of the Bank.
Insurances are realized by the insurance company having permission (license) from RA CB according to the tariff defined by the latter.
Pledged estate appraisal
In case of real estate and chattels assessment is realized by any assessment organization licensed by RA legislation, according to the tariff determined by the latter.
Negative decision grounds
Inadequacy of the customer’s financial condition analysis results to the standards of this procedure and other internal legal acts at the moment of applying.
Insufficient profitability and high risk of the presented project.
Insufficient argumentation of the loan purpose.
Non-credibility of the presented documents.
Insufficient liquidity of loan security.
Pollution or damage to the environment caused by customer’s activity.
Other reasons which according to the Bank assessment will hamper the loan repayment.
Customer’s negative credit history can also serve as a basis for negative conclusion on loan lending.
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! Minimum in the loan amount, maximum in the amount of the collateral assessed value.
Attention! It is possible to define a loan repayment flexible schedule depending on the peculiarities of the financed activity. Early loan repayment is allowed for which no fines or penalties are charged.
Attention! Early loan repayment is allowed for which no fines and penalties are charged.
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 2 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. Statement from the real estate Cadastre Department about barrage (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. Statement on ban from Real Estate Cadastre Department (after lending decision).

Attention! As an additional loan security means the Bank may also require guaranty of one or more persons.
Attention! In case of failure to repay the interest and the principal on time, the mortgaged property may be confiscated, and the information about the Borrower and/or the Guarantor/s will be recorded in the loan register.
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 11:03