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Leasing

Organizations and farms, operating in the Republic of Armenia engaged in agriculture and related activities/industries.
Through this financing mechanism, you may acquire tractors and other agricultural machinery, farm tools and equipment, production lines and equipment designed for processing and collection.
  • Loan amount: 100,000 – 150,000,000 AMD and 200-200,000 USD
  • Term: 3-84 months
  • Annual interest rate: 9–20% (AMD) or 9-16% (USD)
  • Effective interest rate: 9.6-23.1 % (AMD) or 9.4-17.2 % (USD)
  • Minimum prepayment amount: 10% of the cost of property
  • Mandatory insurance of the leasing object
  • Repayment: by regular equal installations
  • Leasing is provided solely in non-cash form via transfer of the amount to the supplier of fixed asset selected in advance by the leasee
  • Decision on provision of leasing is made in maximum 10 days
  • Client’s creditability assessment and credit history are factors considered in making a decision on satisfaction/rejection of leasing
  • After the completion of the Leasing Agreement, the Lessee may purchase, by right of ownership, the fixed asset provided to it, by paying the amount stipulated by the Agreement, which shall not exceed 1% of the cost of the provided leasing property
  • If the Leasee fails to make lease payment in due time, information about the client will be recorded in the Credit Registry.
  • If the Leasee fails to fulfill its obligations (fails to repay obligations at the expense of the property provided for lease), the repayment may be made at the expense of other property and/or funds of the Leasee.
  • For provision of the leasing, additional guarantees and/or collateral may be requested (immoveable or movable, or other property, to which confiscation may be applied in cases permitted by the RA legislation).

Calculation of lease payments

The Leasee pays a lease payment, which shall be equal to the aggregate of amounts paid for the purchase, transportation, customs clearance (if imported), installation and the lease interests, subtracted the advance amount (prepayment) paid by the Leasee.  The frequency of lease payments shall be by equal installments (e.g. monthly or quarterly).

Example of calculation of lease payments

E.g. if the aggregate amount paid for the purchase, transportation, customs clearance (if imported), installation of the object of lease is AMD 10,000,000, at 14% annual interest rate (annual price rise), 60 months repayment period and 10% prepayment, the monthly lease pay will be AMD 209,041.

Other fees

Commission fee of 0.5% for all the leasing types,  and maximum 15,000 AMD in case of leasing, provided with a subsidy. No commission fee is charged for the loans, provided in USD.

Penalties

  • In case of a delay of lease payments, a fine on overdue amount is imposed at the rate of 0.1% on overdue amount, for each day of delay.
  • At the rate of 1%, in case of repaying the lease earlier than the date established by the Lease Agreement

Deadlines for the lease approval and provision

The approval for the lease application, and provision of the relevant information to the applicant as well as the lease provision to the lease is handled maximum within 30 days, in case there are clear agreements for the purchase of leasing object with the supplier.

  • 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 THE EVENT OF FAILURE TO FULFILL, OR IMPROPER FULFILLMENT OF, OBLIGATIONS ASSUMED BY THE LEASEHOLDER, THE COMPANY SHALL BE ENTITLED TO CLAIM BACK THE OBJECT OF LEASING ACCORDING TO THE ORDER, PRESCRIBED BY THE RA LEGISLATION, AND, IN THE EVENT OF FULL FAILURE TO REDEEM THE OBLIGATION OF THE LEASEHOLDER, TAKE RELEVANT MEASURES TO ENSURE REDEMPTION OF OBLIGATIONS AT THE EXPENSE OF OTHER PROPERTY AND/OR FUNDS.

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.
  • Visit in person the office of the Organization and meet loan officers
  • Present  your activities, implemented (on-going) projects and the purpose of the leasing to loan officers
  • Fill in a leasing application and submit documents required for leasing

 Documents required for provision of leasing:

For legal entities

  • Leasing 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 lease and, where appropriate, the right(s) of the applicant (or other persons) to pledge the property (lien)
  • 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

For physical entities (individuals)

  • Lease 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 income)
  • If necessary, the Company may request additional documents