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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
  • own property and/or movable or immovable property under their joint ownership, and/or own fixed assets
  • 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: 12%
  • Loan interest amount is calculated on outstanding loan balance;
  • Up to 8 months grace period for principle and interest
  • A group comprising of 3-5 members is formed
  • Group members shall be members of the cooperative approved by the Jinishian Memorial Foundation
  • Group members cannot be members of the same household
  • Loan security:  joint and several guarantee of group members
  • 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 2 percent of the early repaid amount
  • Client’s creditability assessment and credit history are factors considered in making a decision on satisfaction/rejection of loan application.
  • 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 2 percent of the early repaid amount
  • Client’s creditability assessment and credit history are factors considered in making a decision on satisfaction/rejection of loan application
  • In instances where the borrower fails to repay the loan principle and interests in due time, information about the client will be recorded in the Credit Registry
  • 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.

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 500,000, at 13% annual interest rate and 12 months of repayment period, the average monthly interest due to payment shall be AMD 500,000*0.13/12= AMD 5417.  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 is not charged for provision of loan
  • If the loan is provided in cashier’s check, a lump-sum fee equal to 1% of the loan amount is charged.

Penalties

  • In case of delays of loan interests and/or principle payment, a fine is imposed  at the rate of 0.2% on overdue amount  (overdue loan amount and overdue interest amount), for each day of delay
  • At 2% of the amount repaid during no later that six months since the date of signing of the loan agreement.

Attention

In the event of failure to fulfill, or improper fulfillment of, obligations assumed by the borrower, the Company takes relevant measures to confiscate and/or realize the property and/or other funds of the borrower and/or the group members, in the manner stipulated by the RA legislation.

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.

Documents required for loan provision: 

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