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Non-collateralized Guarantee Loan

  • farmers and entrepreneurs operating in the RA, 18-70 age group, who:
  • are engaged in agricultural activities or entrepreneurship, and have work experience in the particular field
Financing of seasonal production and/or trading/commercial needs of farms and other entities
  • Loan amount and currency:AMD 100,000 -5,000,000 or 500-6,000 USD
  • Term:3-60 months
  • Annual interest rate: 12-22% (AMD) or 10-18% (USD)
  • Effective interest rate: 14.3-29.3 % (AMD) or 10.5-19.6 % (USD)
  • Client /Borrower/ pays a lump-sum fee for provision of loan (loan servicing), at effective tariffs  established by the Organization as of the particular date (view details: Tariffs established by the organization
  • Loan interest amount is calculated on outstanding loan balance
  • Loan security: guarantee of physical and legal entities
  • Repayment schedule is produced according to cash flows of a borrower with repayment periodicity of no less than twice in 12 months
  • Loan is provided noncash or in cashier’s check
  • 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
  • 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 of failure to fulfill obligations by a borrower, both the particular borrower and the guarantors shall bear liability at the expense of their property and/or other funds.
  • The number of guarantors for loan provision shall be determined as follows:
  • AMD 1,000,000 inclusive– at least 1 guarantor
  • AMD 1,000,001 – 2,000,000 000 inclusive – at least 2 guarantors
  • AMD 2,000,001 – 5,000,000 000– at least 3 guarantors

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

Thus, when providing a loan of AMD 2,000,000, at 18% annual interest rate and 36 months of repayment period, the average monthly interest due to payment shall be AMD 2,000,000*0.18/36= AMD 10,000.  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 for loan provision equal to 2% of the loan amount

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 than six months since the date of signing of the loan agreement.

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 10 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)
  • 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)
  • ID documents of guarantors