Renewable Energy Development

Loan purpose
For HES construction and rearmament
Activity period of borrower’s other source of income
In case of trading no less than 3 months prior.
In case of production and service sector no less than 6 months prior.
Loan amount
The amount of the provided loan 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
Subsidized interest rate
Maximum 10.5%
Loan term
Maximum 12 years
Pledge subject
Real estate,
Transportation means,
Other security means acceptable to the Bank,
The loan amount should make maximum 75% of the pledged estate appraised value.
Grant way
By cas,
Cashless.
Flat fee,
In stages.
Commission fee
Commission free
Decision Period
For large loans up to 25 working days.
For medium, small and micro loans up to 20 calendar days.
Attention! The Bank finances max. 70% of the project.
Borrower requirements
Resident corporate entity,
Sole proprietor.
Who except the reconstructed (rearmed) HES have other source of income.
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 Bank claim.
Security is realized by the insurance company licensed by RA CB, according to the tariff determined 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! 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 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. Copies of construction, water usage and other necessary permissions,
18. The conclusion of the Armenian-German "Renewable Energy Development" Fund Project financial and technical advisers;
19. 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. Copies of construction, water usage and other necessary permissions,
12. The conclusion of the Armenian-German "Renewable Energy Development" Fund Project financial and technical advisers;
13. Statement on ban from Real Estate Cadastre Department (after lending decision).

Attention! As an additional loan security means the Bank may also require the guaranty of other person(s).

Interests are calculated on the loan balance. Loan interests are calculated based on the nominal interest rate. The actual interest rate shows how much the loan interests and other payments will cost in case of performance in defined terms and sizes.

Actual annual interest rate calculation procedure and sample.
Actual annual interest rate calculation formula.

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
For HES construction and rearmament
Activity period of borrower’s other source of income
In case of trading no less than 3 months prior.
In case of production and service sector no less than 6 months prior.
Loan amount
The amount of the provided loan 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
Subsidized interest rate
Maximum 10.5%
Loan term
Maximum 12 years
Pledge subject
Real estate,
Transportation means,
Other security means acceptable to the Bank,
The loan amount should make maximum 75% of the pledged estate appraised value.
Grant way
By cas,
Cashless.
Flat fee,
In stages.
Commission fee
Commission free
Decision Period
For large loans up to 25 working days.
For medium, small and micro loans up to 20 calendar days.
Attention! The Bank finances max. 70% of the project.
Borrower requirements
Resident corporate entity,
Sole proprietor.
Who except the reconstructed (rearmed) HES have other source of income.
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 Bank claim.
Security is realized by the insurance company licensed by RA CB, according to the tariff determined 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! 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 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. Copies of construction, water usage and other necessary permissions,
18. The conclusion of the Armenian-German "Renewable Energy Development" Fund Project financial and technical advisers;
19. 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. Copies of construction, water usage and other necessary permissions,
12. The conclusion of the Armenian-German "Renewable Energy Development" Fund Project financial and technical advisers;
13. Statement on ban from Real Estate Cadastre Department (after lending decision).

Attention! As an additional loan security means the Bank may also require the guaranty of other person(s).

Interests are calculated on the loan balance. Loan interests are calculated based on the nominal interest rate. The actual interest rate shows how much the loan interests and other payments will cost in case of performance in defined terms and sizes.

Actual annual interest rate calculation procedure and sample.
Actual annual interest rate calculation formula.

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