- 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)
- 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 requested, on 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.
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.
- 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
In the event of failure to fulfill, or improper fulfillment of, obligations assumed by the Leasee, the Company shall be entitled to claim back the object of leasing and, in the event of full failure to redeem the obligation of the Leasee, take relevant measures to ensure redemption of obligations at the expense of other property and/or funds.
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 leasee is handled maximum within 10 days.
- 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
- Information about incomes (salary or other incomes)
Where appropriate, 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)