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Commercial Loan

Business entities operating in the Republic of Armenia engaged in trading, provision of services and small-scale production.
Financing of production processes, trading and services
  • 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%
  • Effective interest rate: 14.2-23.1 % (AMD)
  • 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 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 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.
  • YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL COMPANY WHICHEVER WAY YOU PREFER: THROUGH POSTAL COMMUNICATION OR EMAIL. THE ELECTRONIC SUBMISSION OF THE INFORMATION IS THE MOST CONVENIENT OPTION. IT IS AVAILABLE 27/7, IT EXCLUDES THE RISKS OF LOSING PAPER_BASED INFORMATION AND ENSURES CONFIDENTIALITY.
  • THE COMPANY CAN REQUIRE ADDITIONAL DOCUMENTS OR OTHER INFORMATION FROM THE CUSTOMER BASED ON THE “KNOW YOUR CUSTOMER” PRINCIPLE, DEFINED BY THE RA LAW “ON COMBATING MONEY LAUNDERING AND TERRORISM FINANCING”.
  • www.fininfo.am , “ATTENTION: “YOUR FINANCIAL INFORMATION DIRECTORY” IS AND ELECTRONIC SYSTEM, WHICH MAKES IT EASIER TO SEARCH FOR AND COMPARE SERVICES FOR PHYSICAL ENTITIES AND FACILITATES THE CHOICE OF THE MOST EFFICIENT OPTION FOR YOU”.
  • LOAN INTEREST RATES ARE BEING CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ANNUAL REAL INTEREST RATE SHOWS HOW MUCH WILL THE LOAN COST FOR YOU IF YOU COVER THE INTEREST RATES AND ALL THE OBLIGATORY FEES RELATING TO THE LOAN PROVISION AND SERVICE IN A TIMELY MANNER AND BY THE AMOUNT DEFINED.
  • IN CASE OF FAILURE TO FULFILL YOUR OBLIGATIONS FULLY OR PARTIALLY, THE CREDITOR SENDS THE DATA TO THE CREDIT REGISTRY AFTER 3 WORKING DAYS, WHERE YOUR CREDIT HISTORY IS FORMED. YOU HAVE THE RIGHT TO GET YOUR CREDIT HISTORY FROM THE CREDIT REGISTRY FREE OF CHARGE ONCE A YEAR.ATTENTION: NEGATIVE CREDIT HISTORY MAY AFFECT YOUR FUTURE ATTEMPTS TO GET A LOAN!
  • 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.

FOR GUARANTORS

  • GUARANTOR BEARS THE LIABILITY OF REPAYING THE LOAN. IT MEANS THAT IN CASE THE LOANER PERFORMS HI/HER OBLIGATIONS INCOMPLETELY, OR DOESN’T PERFORM THEM AT ALL, YOU WILL PAY INSTEAD.  THIS WILL AFFECT YOUR CREDIT HISTORY AND YOU MAY BE DEPRIVED OF YOUR OWN PROPERTY.
  • YOU WILL BE PROVIDED WITH AN EXAMPLE OF LOAN AND GUARANTEE CONTRACTS, AND A REPAYMENT SCHEDULE.
  • THE COMMUNICATION WILL BE CARRIED OUT BY YOUR PREFERRED METHOD.
  • YOU WILL BE NOTIFIED ABOUT THE CONTRACT TERM CHANGES 7 DAYS BEFORE.
  • IN CASE OF DELAY IN LOAN REPAYMENT, AT THE LATEST ONE DAY LATER YOU WILL BE NOTIFIED ABOUT IT.

THE GUARANTOR HAS THE RIGHT

  • TO REQUIRE INFORMATION ON THE OUTSTANDING AMOUNT OF THE LOAN, ANY TIME.
  • TO REQUIRE FROM THE LOANER THE COMPENSATE THE INTEREST PAID TO THE CREDITOR FOR THE LOAN, AS WELL AS OTHER LOSSES INCURRED INSTEAD OF THE LOANER.
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Document required for loan provision: 

For legal entities 

  • Loan application
  • Decision on appointment of the director (excerpt from, or a copy of, the order): if the director does not act as a party of the transaction, a power of attorney of an authorized person issued by the director or other competent authority
  • A copy of the ID document of the director or the authorized person
  • State registration certificate (copy), with addendum thereof, and the TIN (taxpayer’s identification number) code
  • Charter (Bylaws) and Articles of Incorporation (copy)
  • Financial statements for the last financial year and the last quarter of the current year
  • Statements on debts from tax and social welfare (pension) authorities
  • Decision of the applicant’s competent authority on applying for loan and pledging the applicant’s (or other persons’) property (rights to property) to secure the loan
  • Ownership certificates of pledged property and grounds  for ownership (copy); if the collateral is an equipment(s), its passport; if vehicle, its registration certificate (copy)
  • If necessary, the Company may request additional documents
  • ID document  of the guarantee, social card, and its copies
  • Filled agreement for making an ACRA credit request, for guarantees

For physical entities (individuals)

  • Loan application
  • ID document
  • Ownership certificates of pledged property and grounds  for ownership (copy); if the collateral is an equipment(s), its passport; if vehicle, its registration certificate (copy)
  • Information about incomes (salary or other incomes)
  • If necessary, the Company may request additional documents
  • ID document  of the guarantee, social card, and its copies
  • Filled agreement for making an ACRA credit request, for guarantees