Conditions
 
Loan purpose
Loans provided for expansion of entrepreneurial activity and development purposes
  
Loan type
Commercial
  
Loan currency 
AMD, USD, EUR (Exchange rate fluctuations may have an impact on the redemption of foreign currency loans the risk of which shall be borne by you)
 
Loan amount
AMD 5.000.001-8.000.000 or equivalent currency
 
 Annual interest rate
  AMD Currency
Term 12-23 months 24-60 months 12-23 months 24-60 months
Rate 15% 16% 12% 13%
Loans within the framework of <<Women in business>> project
Currency AMD
Term 12-48 months
Rate* 12-15%
* The maximum interest rate for the  companies engaged in tourism -  14 % GAF project
Currency AMD
Term 12-60 months
Rate 13.9%
GAF SME project loans for business women
Currency AMD
Term 12-60 months
Rate 13.9%
 
Loan term
12-60 months
Grant way
Cashless ( the money is transferred to the current account and can be withdrawn )
Redemption frequency
• Monthly, Equally (annuitant), or non-equally (differential),
• It is possible to define a loan repayment flexible schedule depending on the peculiarities of the financed activity.
 
Security
At least the guaranty of 2 persons and collateral of real estate or chattels, moreover the appraised value of the evaluated estate should make at least 50% of the loan amount.
Commission fee
Flat fee - 1% of the loan amount
Within the framework of “Women in business” project - 0.5% one-time in the amount of the loan amount
No commission fee will be charged for the loans granted to business women under the GAF and the GAF SME Project. 
Withdrawal fee
In case of encashment of the loan amount a withdrawal fee is charged per the rates available at the Bank.  
Guaranty
• The insurance of a real estate is realized on the account of the customer by the insurance company licensed by RA legislation and cooperating with the Bank according to the tariff defined by the latter, which may vary from 0.15 to 0.2 % based on a pledge type. 
• Car insurance is realized on the account of the customer by the insurance company having permission (license) from RA CB according to the tariff defined by the latter. The tariffs vary from 2.5-3% of the contractual amount.
The minimum of the pledged estate assessed value and loan amount is taken as a basis for the insurance.
Pledged estate appraisal
 Is realized by any assessment organization licensed by RA legislation, according to the tariff determined by the latter, which varies from:
In case of car -  AMD 15.000- 20.000
In case of real estate – AMD 20.000 -200.000
Expenses  related  to the arrangement of pledge
All the expenses related to the collateral arrangement (notarization, registration of the real estate in subdivisions of Cadastral territory) shall be borne by the borrower
• Pledged vehicle notary fee - AMD 12.000 
• RA Police Fee (barrage and pledge of real estate ) - AMD 5.000
• Pledged real estate  notary fee - AMD 15.000
• Joint  reference (on restrictions against real estate) - AMD 10.000
• Certificate on the registration of right to real estate - AMD 27.000
Loan arrangement is realized
ARMECONOMBANK OJSC Head office and branches. With the exception of Nairi MC, Rossia-1 and Araratyan branches. 
 
Decision  period
Up to 3 working days
Penalties
For each overdue day of the amounts (loan, interest amounts, and other fees) not paid within the term set forth by the Agreement a penalty in the amount of 13% of the outstanding amount is imposed.
Statement provision
Up to 1month transactions- free of charge
1- 3 months - AMD 1.500
3- 12 months - AMD 2.500
12 months and more-  AMD 5.000
 
*To get acquainted with the Bank’s tariffs, please visit the link: https://www.aeb.am/hy/business_cash/

ATTENTION. If an early repayment is made in the amount exceeding 20% of the Principle balance as of the first day of each month (which does not include repayment of the part of the loan envisaged by the repayment schedule of the given month) without the Bank's written consent, a penalty in the amount of 5% of the early repaid amount exceeding 20% of the balance of the Principle is applied.

ATTENTION. Define the minimum amount of “Easy+” loan type AMD 5.000.001 or equivalent foreign currency, moreover the minimum amount of providing the loan may be less than AMD 5.000.001 or equivalent foreign currency, provided that the annual actual interest rate of the loan to be provided will not exceed 24%.

ATTENTION. As an additional loan security means, the Bank may also require the guaranty (s) of one or more persons.

ATTENTION. Security. The person providing a guarantee within the given loan type must bear a joint responsibility towards the Bank, otherwise if the guarantor bears subsidiary responsibility, the latter must bear joint responsibility as a Co-borrower.

ATTENTION. Preferential terms are defined for customers submitting an agreement with "Mets Fair" LLC for "Yerevan" fair rented pavilions preferential terms: 16% annual minimum interest rate for AMD loans, 13% annual minimum interest rate for USD loans.

ATTENTION. Preferential terms are defined for the customers who are engaged in the production of shoes and semi-finished shoes-: 15% annual interest rate for AMD loans, 13% for USD loans.

ATTENTION. Interest is calculated on the loan balance.

ATTENTION. To get acquainted with the tariffs of other services rendered within the framework of loan operations please visit the following link - https://aeb.am/media/2020/04/3717.pdf

ATTENTION. On the purpose of due diligence of the customer envisaged by RA law on “On combating money laundering and terrorism financing”, the Bank may request additional documents or other information from the consumer based on <<Know your customer>> principle, as well as ask the consumer additional questions during oral communication.

ATTENTION. In compliance with the agreement signed with USA, to find out whether you are a US tax payer, the bank may collect additional information about the agreements, contracts, cooperation, membership signed by financial institutions, which may have a direct impact on the consumers (e.g. Foreign Account Tax Compliance Act (FATCA)).

ATTENTION.
In case of early repayment of more than 20% of the principal amount of the loan (which does not include the repayment of the part of the loan provided for by the repayment schedule in the given month) without the written consent of the Bank during each month, a fine of 5% of that amount is calculated in case of loans exceeding the amount of AMD 5,000,000 as of the first day of the given month,.

ATTENTION. When applying for a loan, the Bank provides you with an individual leaflet on essential terms of consumer loan, which defines individual terms of the loan to be provided to you.

ATTENTION. As an additional means of loan security, the Bank may also require the guarantees of other person/persons.

ATTENTION. In case of non-fulfillment or improper fulfillment of your obligations the lender sends your data to the credit bureau where your credit history is being formed up to 3 business days. You are entitled with the right to get your credit history from the credit bureau free of charge once a year( https://acra.am/?lang=hy )

ATTENTION. Bad credit history may prevent you from receiving other loans in the future

ATTENTION. Loan interests are calculated based on the nominal interest rate and the actual interest rate shows how much the loan will cost in case of fulfillment of loan obligations in defined terms and sizes. The actual annual interest rate calculation procedure can be found on the following link: https://www.aeb.am/media/2019/06/2640.pdf[br]
The payments to be paid by the consumer are not included in the calculation of the actual interest rate irrespective of the fact that payments against the works and services have been made with or without a credit.

ATTENTION. The nominal interest rate may be changed by the bank. The information on the changes of the nominal interest rate may be found on https://www.aeb.am/media/2019/05/2631.pdf 

1.You are eligible to communicate with financial institution by the means of communication you prefer – through postal services or electronically. The receipt of information electronically is the most convenient. It is available round-the-clock (24/7), is free of the risk of loss of paper information and ensures the confidentiality.

2. The possible negative consequences, penalties/fines for the customer in case of non-fulfillment of obligations
• 0, 13%a of the unpaid amount for each overdue day
• 0, 13%a of the unpaid interest amount for each overdue day

3. If you have outstanding liabilities against the creditor, while fulfilling your obligation the loan repayment arrangements are made in the following sequence:
• Court costs (if any)
• Collateral sale costs (if any)
• Accrued penalty
• Accrued interest
• Insurance costs /if any/
• Principal amount of the loan

4. Property (house, car, etc.) pledged by you may be confiscated by law in case you fail to perform your loan obligations on time.

5. In case of non- fulfillment of loan liabilities, the loan liabilities are covered by the collateral, and should the collateral be not enough to repay the borrower’s liabilities it is possible to repay the liabilities on the account of another property of the borrower and/or guarantor(s)/co-borrower/s/.

6. Loan interests are calculated towards the loan balance.
For example if the customer is provided with a loan in the amount of AMD 1.200.000 with an annual interests rate of 24% ,with 12 months period (while calculating monthly accrued interests as a number of days 30 days period has been taken as a basis).
Months Loan balance Repayment from loan Repayment from interest
1 1.200.000 100.000 23.671
2 1.100.000 100.000 21.699
3 1.000.000 100.000 19.726
4 900.000 100.000 17.753
5 800.000 100.000 15.781
6 700.000 100.000 13.808
7 600.000 100.000 11.836
8 500.000 100.000 9.863
9 400.000 100.000 7.890
10 300.000 100.000 5.918
11 200.000 100.000 3.945
12 100.000 100.000 1.973

7. WE SHOULD REMIND THAT THE EXCHANGE RATE FLUCTUATIONS MAY HAVE AN IMPACT ON THE REPAYMENTS OF LOAN PROVIDED IN FOREIGN CURRENCY.

8. The Bank applies no limits to loan amount; it will be conditioned by and related to:
• Purpose of loan
• Customer's creditworthiness
• Collateral offered by the customer
• Loan risk assessment
• Requirements of prudential standards provided by the Central Bank of Armenia

9. “ARMECONOMBANK” OJSC can provide services to the customer under terms which may differ from those set forth in the Bank's overall policy taking into account any of the following conditions of the below-mentioned list:
• Customer account balance
• Customer account turnover
• Strategic importance of the customer for the Bank
• Number of employees in customer organization
• Total number of cards issued for customer organization
• Income gained from customer
• Volume of transfers
• Size of deposits with the Bank
• Significant borrower
• Social considerations (medical organizations, educational institutions, etc.)
• Being the head of such organization
• Other objective conditions

10. The borrower pays interest to the bank for using the loan amount, the interest of which is calculated on the loan balance for the calendar days of actual use of the loan based on a 365-day year. For loans under specific projects the interest calculation may be based on a 360-day year.
• Loans are repaid within the dates indicated in the loan agreement.
• The periodicity of interest payments is determined in accordance with the loan agreement or repayment schedule.
• If the repayment date for principal or interest rates falls on day off, the payment is made on the following working day without calculation of penalty for the days off.

11. Repayment of Loans
• Loans are repaid within the dates indicated in Loan Agreement
• Loans are repaid in the currency in which they were given • In case of loans in foreign currency, exchange rate fluctuations may affect loan payments
• In case of exchange rate fluctuations, the exchange rate risk related to loans will be borne by the borrower

12. The Bank may terminate the Loan Agreement and request repayment of the loan amount, if
• The borrower has failed to make any payment required under Loan Agreement
• The borrower has breached any confirmation made by the him/her and fails to correct such breach within 30 days following the occurrence thereof
• Any presentation, warranty, document, or information provided by the borrower is materially incomplete
• By reasonable opinion of the Bank, an essential negative change has occurred in financial state of the borrower, including court orders, outflow of assets, deterioration or termination of business, company re-organization.
• The borrower undergoes dissolution, or is subject to ongoing or pending bankruptcy proceedings
• The borrower interferes with monitoring
• In case of other objective reasons

13. The Bank may accept as collateral:
• Real estate: land, houses, buildings, apartments
• Fixed assets
• Circulating assets
• Motor vehicles
• Precious metals
• Treasury bills, foreign currency, stocks
• Property to be purchased and ownership right
• Cash

14. The appraisal value of movable and immovable real estate is based on the market value indicated in appraisal statement.

15. The loan or a part thereof, as well as the accrued interest is deemed overdue if not repaid within periods specified in the Agreement.
• In case of non-repayment of the amounts (the loan, interests other payments) within the term(s) set by the Agreement, Borrower shall pay a penalty in the amount of 0.13% (zero point thirteen percent) of the overdue amount for each day of default. The total amount of the unpaid interests calculated in accordance with this paragraph shall not exceed the current debt balance.
• In case of non-repayment of the loan or a part thereof within the term(s) set by the Agreement, the Borrower is obliged to pay interests to the Bank in the amount of double of the settlement rates set by the Central Bank of Armenia. The  total amount of the unpaid interests calculated in accordance with this paragraph shall not exceed the current debt balance.
• Starting from the 91st day of overdue days, 21,5% annual interest rate is applied to the balance of non-overdue loan (term loan). After the full repayment of outstanding amounts, penalties and interests accrued, the interest rate set by the Loan Agreement is recovered.

16. The Bank shall not accept the following items as collateral:
• Non-circulating assets
• Separate parts of indivisible property
• Leasing right
• Property owned by urban, rural, and local communities
• Property with ownership right

17.To satisfy the claim of CREDITOR-PLEDGEE, the pledged property may be confiscated in extrajudicial manner pursuant to paragraphs 2-4 of these Rules in case of non-fulfillment or improper fulfillment of the obligations by PLEDGER under Collateral Agreement and by BORROWER under Loan Agreement.
  2. The property confiscated in extrajudicial manner may be sold if under the Pledge Agreement PLEDGER has authorized CREDITOR-PLEDGEE to sell the pledged property upon emergence of the grounds for confiscation as stipulated in paragraph 1 of these Rules without seeking court intervention and so fully recover the claim covered by the collateral and has also agreed to transfer without seeking court intervention the ownership of the pledged property against the respective part of main liability to CREDITOR-PLEDGEE or any person designated by the latter in the manner provided by RA legislation.
3.Upon emergence of the grounds for confiscation as stipulated in paragraph 1 of these Rules, CREDITOR-PLEDGEE shall duly notify PLEDGER in writing of confiscation of the pledged property (confiscation notice). In two months following the date of delivery of confiscation notice to PLEDGER, CREDITOR-PLEDGEE shall have the right, pursuant to Article 195 of RA Civil Code, to sell the pledged property directly or through public auction pursuant to RA Law on Public Bidding.
4. PLEDGER undertakes to transfer the pledged property to CREDITOR-PLEDGEE within two months following the date of delivery of confiscation notice to PLEDGER.
 5. The duration of process of sale of pledged property may not become a ground for cessation of growth of BORROWER's liabilities to CREDITOR-PLEDGEE. Moreover, the proceeds from sale of collateral shall be utilized to fully cover CREDITOR-PLEDGEE's claims to BORROWER existing as of the date of sale of collateral and, should the claim not be covered on the account of the collateral, the outstanding amounts may be confiscated from other property of BORROWER.
    6. Confiscation of the property pledged to cover CREDITOR-PLEDGEE's claims by court order may be executed in the manner provided by RA legislation.

18. You can get acquainted with the tariffs on any service by visiting the following link: https://www.aeb.am/hy/sakagner/ :

19. You can get acquainted with the terms and conditions of remote banking services by visiting the following link: https://www.aeb.am/hy/mobile_banking/
   
Demands
Requirements to Borrower
Resident sole entrepreneur,
Corporate entity.
Term of activity
In case of trade no less than 3 months prior.
In case of production and service field no less than 6 months preceding.
Positive decision grounds
Positive credit history (if available);
Reliability of submitted documents;
Positive assessment of the client's financial position
Availability of collateral and / or guaranty acceptable to the Bank.
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 guaranty.
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.
General Information
Documents to be presented by legal entities
 
Punct Copy of State Register certificate, transcript on the executive authority is mandatory or a statement given by Unified State Register (the latter may not be required if the Bank receives the given information electronically in defined order).
Punct State Register statement on participants, replacement of the director, and amendments to charter (the information may not be required if the Bank receives the given information electronically in defined order). 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 (the information may not be required if the Bank receives the given information electronically in defined order).
Punct The documents listed in paragraph 2 are not required for corporate entities in case where the decision on borrowing may be made by the director.
Punct Charter (reviewed) (the document may not be required if the Bank receives the given information electronically in defined order)
Punct Authority's decision on borrowing, and pledging property (necessary if the information listed in paragraph 2 is required).
Punct Set of financial reports for the latest accounting period. If necessary, approved (sealed or stamped) by applicable tax authority (copy).
Punct 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).
Punct List of fixed assets (if necessary).
Punct  Tax code (copy); TIN.,
Punct  Licenses (copy), if any.
Punct Passport (copy),
Punct Documents supporting the ownership right to the property offered as loan security.
Punct In case of collateral owned by individual, certificate of marriage (divorce, death of spouse).
Punct Bank account statement (if necessary).
Punct Statement of accounts receivable and payable (with breakdown if necessary)
Documents to be presented by sole entrepreneurs
 
Punct Copy of State Register certificate, transcript on the executive authority is mandatory or a statement given by Unified State Register (the latter may not be required if the Bank receives the given information electronically in defined order).
Punct Tax code (copy); TIN.
Punct Set of financial reports for the latest accounting period. If necessary, approved (sealed or stamped) by applicable tax authority (copy).
Punct 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).
Punct Licenses (copy), if any.
Punct Passport (copy),
Punct Documents supporting the ownership right to the property offered as loan security.
Punct In case of collateral owned by individual, certificate of marriage (divorce, death of spouse).
Punct Bank account statement (if necessary).
Punct Statement of accounts receivable and payable (with breakdown if necessary)
Punct Statement on ban from Real Estate Cadastre Department (after lending decision).
Punct Other documents if necessary.
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Updated: 01/08/2024 15:16