The right investment at the right time can transform your agribusiness. Acquire the necessary equipment or infrastructure. Acba bank’s capital investment loan is available to individuals and legal entities throughout the Republic of Armenia.
Nominal interest rate: 13%
Actual interest rate: 13.81%
Real estate, land, orchards, vehicles, agricultural and other-purpose machinery, equipment, cattle (breeding stock), gold, and other collateral. The required loan-to-collateral ratio is a maximum of 70%.
FOR GUARANTORS:
If the borrower fails to fulfill their obligations, you will be required to make the payments on their behalf, your credit history will deteriorate, and you may lose your property. You will be provided with copies of the loan agreement, guarantee agreements, and repayment schedule. Communication will be carried out through the method you have selected. You will be notified 7 days in advance of any changes to the terms of the agreement. A reminder regarding your outstanding obligation will be sent 1 day in advance. In case of a delay in loan repayment, you will be notified no later than one day after the delay.
THE GUARANTOR HAS THE RIGHT TO:
Request information from the lender at any time regarding the outstanding balance of the loan.
Recover from the borrower the amounts you have paid toward the loan, as well as any other damages incurred on behalf of the borrower.
For individuals
Identity document.
A copy of a document prescribed by law containing the Social Services Number, or the original certificate issued by the state registry authority regarding obtaining or not obtaining a Social Services Number.
Documents confirming ownership of the collateral offered by the customer as security for the loan.
Copies of the passports of guarantors and/or pledgors.
For the purpose of proper customer due diligence prescribed by the RA Law “On Combating Money Laundering and Terrorist Financing,” the Bank may, based on the “Know Your Customer” principle, request additional documents or other information, as well as ask additional questions during verbal communication.
Other documents may also be required, if necessary.
For legal entities
Identity documents of the founders, director, and chief accountant.
Certificate of ownership or lease agreement for the premises where the business operates.
License (if the activity is subject to licensing).
Certificate from the tax inspection regarding obligations.
Reports for the last 1 year submitted electronically to the tax inspection and notification confirming acceptance of the reports.
Copy of the certificate of registration with the State Register of Legal Entities (including attachments) and copy of the taxpayer identification number, where necessary.¹
Certificate from the State Register of Legal Entities.¹˒²˒³
Copy of the charter of the legal entity.¹
Decision of the competent body (general meeting) regarding obtaining the loan.
Copy/copies of the guarantor’s/guarantors’ passport(s).
For the purpose of proper customer due diligence prescribed by the RA Law “On Combating Money Laundering and Terrorist Financing,” the Bank may, based on the “Know Your Customer” principle, request additional documents or other information, as well as ask additional questions during verbal communication.
Other documents may also be required, if necessary.
¹ The documents are required if the relevant data or documents are missing or incorrect in the database of the State Register of the Ministry of Justice of the Republic of Armenia.
² The certificate can be obtained from the Bank or from the Agency of the State Register of the Ministry of Justice of the Republic of Armenia. For legal entity customers, submission of the certificate is mandatory, while for individual entrepreneur customers, it is mandatory if the certificate of registration with the State Register of Legal Entities, including its attachments, has not been submitted.
³ It may be submitted after the Bank makes a positive decision regarding granting the loan.
Loans are provided on a non-cash basis.
A decision regarding the loan application is made within a maximum of 3 days after the customer submits the application and the required package of documents.
No penalties are charged for early repayment of loans of up to AMD 5,000,000 or the equivalent in foreign currency.
In the event of fluctuations in the interest rates on funds attracted and placed by the Bank in the financial market and/or a change in the financing rate and/or the existence of such prerequisites and/or non-purposeful use of the loan by the Borrower, the Bank may unilaterally change the interest rates and commissions stipulated by the agreement, notifying the Borrower at least 30 calendar days in advance.
Example of calculating the interest amount on the loan
Loan amount - AMD 500,000
Loan interest rate - 13%
Loan term - 36 months
Commission - 0%
The annual Actual interest rate will be - 13.81%
The daily interest amount will be calculated as: Loan amount (outstanding balance) × Loan interest rate / 365 = 500,000 × 13% / 365 = AMD 178.08
“ATTENTION: LOAN INTEREST IS CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ANNUAL ACTUAL INTEREST RATE SHOWS HOW MUCH THE LOAN WILL COST YOU, INCLUDING INTEREST AND ALL MANDATORY PAYMENTS RELATED TO THE PROVISION AND SERVICING OF THE LOAN, PROVIDED THAT SUCH PAYMENTS ARE MADE WITHIN THE SPECIFIED PERIODS AND IN THE SPECIFIED AMOUNTS. THE PROCEDURE FOR CALCULATING THE ANNUAL ACTUAL INTEREST RATE CAN BE FOUND HERE.”
If the Borrower fails to fulfill their obligations on time, a penalty of 0.13% is calculated for each day of overdue payment.
For loans in foreign currency, the exchange rate published on the official website of the Central Bank of the Republic of Armenia on the date of loan disbursement is used as the basis for calculating the annual Actual interest rate. The annual Actual interest rate may change depending on changes in the exchange rate published on the official website of the Central Bank of the Republic of Armenia.
For loans of up to AMD 5 million or the equivalent in foreign currency, the Borrower has the right to unilaterally terminate the credit agreement without providing any reason within 7 business days following its conclusion. In this case, the Borrower must pay the lender interest for using the credit amount, calculated in accordance with the annual Actual interest rate specified in the credit agreement. No other compensation related to the termination of the credit agreement may be required from the Borrower.
For loans of up to AMD 5 million or the equivalent in foreign currency, the Borrower has the right to make early repayment of their obligations under the credit agreement, regardless of whether such right is provided for in the credit agreement.
ATTENTION: WHEN APPLYING FOR A LOAN, THE LENDER WILL PROVIDE YOU WITH AN INDIVIDUAL SHEET OF ESSENTIAL TERMS OF THE CONSUMER LOAN, WHICH WILL PRESENT THE INDIVIDUAL TERMS OF THE LOAN TO BE PROVIDED TO YOU.
THE PLEDGED PROPERTY MAY BE FORECLOSED IF THE BORROWER FAILS TO MAKE THE INTEREST AND LOAN PRINCIPAL PAYMENTS ON TIME. IF THE VALUE OF THE COLLATERAL IS INSUFFICIENT, THE BORROWER’S OBLIGATIONS WILL BE SATISFIED FROM THE BORROWER’S OTHER PROPERTY.
ATTENTION: IF YOU FAIL TO FULFILL YOUR OBLIGATION OR FULFILL IT INCOMPLETELY, THE LENDER WILL SEND THE RELEVANT DATA TO A CREDIT BUREAU AFTER 3 BUSINESS DAYS, WHERE YOUR CREDIT HISTORY IS FORMED. YOU HAVE THE RIGHT TO OBTAIN YOUR CREDIT HISTORY FROM THE CREDIT BUREAU FREE OF CHARGE ONCE A YEAR. ATTENTION: A POOR CREDIT HISTORY MAY PREVENT YOU FROM OBTAINING A LOAN IN THE FUTURE.
YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL ORGANIZATION THROUGH YOUR PREFERRED METHOD, BY POSTAL OR ELECTRONIC MEANS. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT OPTION. IT IS AVAILABLE 24/7, FREE FROM THE RISKS OF LOSING PAPER-BASED INFORMATION, AND ENSURES CONFIDENTIALITY.
Financial Assistant
ATTENTION: "YOUR FINANCIAL INFORMANT" IS AN ELECTRONIC SYSTEM THAT MAKES IT EASY TO SEARCH FOR, COMPARE, AND CHOOSE THE MOST EFFECTIVE OPTION FOR INDIVIDUALS.
