The Bank offers standard agricultural loans to individuals and legal entities engaged, or planning to be engaged, in agricultural production or processing. Standard agricultural loans are provided for agricultural long-term investments, as well as short-term financing needs such as purchase of feed, seeds and fertilizers, increasing livestock, renovation and refurbishing of production facilities, cattle-houses and refrigerating equipment, etc.
The annual interest rate on the loan starts from 12.9%, depending on the currency.
The repayment term is up to 84 months. You can plan a convenient repayment schedule.
For loans of up to AMD 5 million, you can make early repayments without penalties.
Real estate, land, gardens, vehicles, agricultural and other-purpose machinery, equipment, cattle (breeding stock), other collateral.
The maximum loan-to-collateral ratio is 70%.
FOR GUARANTORS:
If the borrower fails to fulfill their obligations, you will 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 credit and guarantee agreements and the repayment schedule. Communication will be carried out through the method you have chosen. You will be notified 7 days in advance of any changes to the terms of the agreement. A reminder of the existing obligation will be sent 1 day in advance. In case of a delay in loan repayment, you will be informed no later than one day after the delay.
THE GUARANTOR HAS THE RIGHT TO:
Request information from the lender about the outstanding loan balance at any time.
Recover from the borrower the amounts you have paid toward the loan, as well as other losses 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 guarantors’ and/or pledgors’ passports
For proper customer due diligence as defined 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 business premises
License (if carrying out a licensed activity)
Certificate from the tax authority regarding liabilities
Tax reports submitted electronically to the tax authority for the last 1 year and notification confirming acceptance of the reports
Copy of the certificate of registration of the legal entity in the State Register (with attachments) and copy of the taxpayer identification number (as necessary)1
Certificate from the State Register of Legal Entities1,2,3
Copy of the charter of the legal entity1
Decision of the competent body (general meeting) on obtaining the loan
Copy(ies) of the guarantor(s)’ passport(s)
For the purpose of proper customer due diligence as defined 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 Documents are required if the data or documents are missing or incorrect in the database of the State Register Agency of the RA Ministry of Justice.
2 The certificate can be obtained from the Bank or the State Register Agency of the RA Ministry of Justice; submission of the certificate is mandatory for legal entity customers, while for individual entrepreneur customers it is mandatory if the certificate of registration of the legal entity in the State Register with its attachments is not submitted.
3 May be submitted after the Bank makes a positive decision to provide the loan.
Loans are provided on a non-cash basis
The decision on the loan application is communicated to the customer by phone and/or electronic means and is made within a maximum of 3 days after the required package of documents is submitted
No penalties are charged for early repayment of loans of up to AMD 5,000,000 or the equivalent in foreign currency
In case of fluctuations in the interest rates of 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 if the Borrower uses the loan for a non-targeted purpose, the Bank may unilaterally change the interest rates and fees stipulated by the agreement, notifying the Borrower at least 30 calendar days in advance.
Example of loan interest calculation:
Loan amount - AMD 500,000
Loan interest rate - 12.5 %
Loan term - 36 months
Fee - 1%
The actual interest rate will be - 13.6 %
Daily interest amount will be Loan amount (outstanding balance) x Loan interest rate / 365 = (500,000 x 12.5 % / 365) = AMD 171.23
“ATTENTION: LOAN INTEREST IS CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ACTUAL INTEREST RATE SHOWS HOW MUCH THE LOAN WILL COST YOU IN TERMS OF INTEREST AND ALL MANDATORY PAYMENTS FOR LOAN ISSUANCE AND SERVICING IF MADE WITHIN THE SPECIFIED TERMS AND AMOUNTS. YOU CAN FIND THE PROCEDURE FOR CALCULATING THE ACTUAL INTEREST RATE HERE.”
If the Borrower fails to fulfill their obligations on time, a penalty of 0.13% is calculated for each overdue day.
For foreign currency loans, the exchange rate published on the official website of the Central Bank of the Republic of Armenia on the date of loan issuance is used as the basis for calculating the actual interest rate. The 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 is required to pay the Lender interest for the use of the credit amount, calculated in accordance with the 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 perform (repay) their obligations under the credit agreement ahead of schedule, regardless of whether such a 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
Foreclosure of Collateral
THE COLLATERALIZED PROPERTY MAY BE FORECLOSED IF THE BORROWER FAILS TO MAKE INTEREST AND LOAN PRINCIPAL PAYMENTS ON TIME. IF THE VALUE OF THE COLLATERAL IS INSUFFICIENT, THE BORROWER’S OBLIGATIONS WILL BE REPAYED FROM THE BORROWER’S OTHER PROPERTY.
Information Provided to the Credit Registry
ATTENTION: IF YOU FAIL TO FULFILL OR INCOMPLETELY FULFILL YOUR OBLIGATION, THE LENDER WILL SEND THIS INFORMATION 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 POST OR ELECTRONICALLY. 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.
FOR GUARANTORS
We hereby inform you that:
If the borrower fails to fulfill their obligations, you will 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 credit and guarantee agreements and the repayment schedule.
Communication will be carried out through the method you have chosen.
You will be notified 7 days in advance of any changes to the terms of the agreement.
A reminder of the existing obligation will be sent 1 day in advance.
In case of a delay in loan repayment, you will be informed no later than one day after the delay.
THE GUARANTOR HAS THE RIGHT TO:
Request information from the lender about the outstanding loan balance at any time.
Recover from the borrower the amounts you have paid toward the loan, as well as other losses incurred on behalf of the borrower.
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.
You can find the agricultural loan tariffs here.
Qualified independent appraisal companies cooperating with the Bank
Previous terms of loan tariffs
Information on credit history and score assessment
