• Loan amount and currency:  AMD 300,000 – 100,000,000, or equivalent amount in EURO or USD;
• Term: 6-72 months
• Annual interest rate: 13-20%
• Borrower pays a lump-sum fee for provision of loan, at effective tariffs  established by the Organization as of the date of loan disbursement (view details: Tariffs established by the organization )
• Loan interest is calculated on the outstanding loan balance
• Repayment schedule is produced according to cash flows of the borrower, potentially permitting up to 6 months grace period on loan principle and interest
• Collateral (loan security):  movable and immovable property
• Loan is provided noncash (through transfer)
•  Assessment of a customer’s creditability and its credit history are factors considered in making a decision on satisfaction/rejection of loan application
• In instances where the borrower fails to repay the loan principle and interests in due time, information about the client will be recorded in the Credit Registry
• In instances where the borrower fails to fulfill its obligations and if the amount collected from the realization of the pledged property is insufficient to cover the Company’s claims, the Company shall be entitled to compensation from other property and/or funds of the borrower.
• Loan may be repaid early, yet, where loan is repaid early – within six months after the date of loan provision – the borrow shall pay a penalty equal to 1 percent of the early repaid amount
• Assessment of a customer’s creditability and its credit history are factors considered in making a decision on satisfaction/rejection of loan application
• In instances where the borrower fails to repay the loan principle and interests in due time, information about the client will be recorded in the Credit Registry
• In instances where the borrower fails to fulfill its obligations and if the amount collected from the realization of the pledged property is insufficient to cover the Company’s claims, the Company shall be entitled to compensation from other property and/or funds of the borrower.

Calculation of loan interest rate

Loan interests are calculated on the actual loan balance, considering 365 days in the year. The nominal interest rate of the loan remains unchanged during the entire effective period of the loan.

If the two-fold of the banking rate (settlement banking interest rated established by the CBA) is less than the interest rate defined by the Company, the two-fold banking rate shall be defined as a maximum interest rate.

Example of calculation of loan interest amounts

Simple example of loan interest rate calculation: (Loan amount* interest rate)/ number of months (or days)

Thus, when providing a loan of AMD 2,000,000, at 16% annual interest rate and 18 months of repayment period, the average monthly interest due to payment shall be AMD 2,000,000*0.16/18= AMD 17,778.  It should be mentioned that the actual amount of monthly interests would depend on the loan repayment schedule, yet not exceed the average amount specified above.

Other fees

• Lump-sum fee, equal to 1% of the loan amount.
• Expenses incurred by the borrower in relation with loan provision may include:
• Notarization, if the collateral is an immoveable property: AMD 3,000 – 15,000
• State registration of the lien, if the collateral is an immoveable property or a transport vehicle: AMD 25,000 – 35,000
• State registration of lien of the transport vehicle: AMD 3,000

Penalties

• In case of delays of loan interests and/or principle payment, a fine is imposed  at the rate of 0.1% on overdue amount  (overdue loan amount and overdue interest amount), for each day of delay

• At 1% of the amount repaid during no later that six months since the date of signing of the loan agreement.

Objects of collateral may include:
Any divisible and indivisible property accepted by the Company and in circulation, which may be subject to confiscation in cases permitted by the RA legislation. The following items may serve as collateral:

• Immovable property (industrial premises, lands, buildings, structures, private houses, apartments and other immovable property)
• Transport vehicles
• Mechanisms (machinery) and equipments
• Various inventory holdings
• Government securities
• Other property

The maximum loan/collateral value ratio may not exceed 80%. Appraisal and/or insurance of the object of collateral by a specialized organization are not mandatory.

Attention

In the event of failure to fulfill, or improper fulfillment of, obligations assumed by the borrower, the Company takes relevant measures to confiscate and realize the collateral in the manner stipulated by the RA legislation.

If the amount collected from the realization of the pledged property is insufficient to cover the Company’s claims, the Company shall be entitled to compensation from other property and/or funds of the borrower.