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JMF Loan

  • Consumer cooperatives operating in the Republic of Armenia with 1 or more years of farmers’ membership, who:
  • are engaged in farming or entrepreneurship and have work experience in the industry
  • are guaranteed by the General Meeting of a cooperative
  • are not engaged in unlicensed activities or in other activities prohibited by laws
Organization of current farming operations (financing of circulating capital)
  • Loan amount: AMD 100,000-1,000,000
  • Term: up to 12 months
  • Annual interest rate: 10%
  • Effective interest rate: 10.5-11 % (AMD)
  • Loan interest amount is calculated on outstanding loan balance;
  • Loan Security: Guarantee of physical and legal entities
  • Repayment schedule: according to the borrower’s cash flows, not less than twice, with up to 12 months grace period,
  • Client’s creditworthiness assessment and credit history are factors considered in making a decision on satisfaction/rejection of loan application – at the moment of applying for or receiving a loan the client should be free from overdue or problematic liabilities
  • In case the borrower fails to fulfill its obligations, both the particular borrower and other members of the group shall bear liability at the expense of their property and/or other funds.
  • The number of guarantors for the loan provision is determined in the following way: 1,000,000 AMD inclusive  –  at least 1 guarantor.

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.

Example of calculation of loan interest amounts

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

Thus, when providing a loan of AMD 500,000, at 10% annual interest rate and 12 months of repayment period, the average monthly interest due to payment shall be AMD 600,000* 0.10/12=5,000,  from which the paid interest equals to AMD 1667.

Other fees

  • Lump-sum fee is not charged for provision of loan

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

Deadlines for the loan approval and provision

The approval for the loan application, and provision of the relevant information to the applicant as well as the loan provision to the borrower is handled maximum within 30 days.

  • 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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Documents required for loan provision: 

  • Loan application
  • ID document
  • Information about incomes (income from agricultural activity and other incomes)
  • If necessary, copies of ownership certificates of immovable and/or movable property owned by the borrower.