The main objective of the program is to promote the establishment of modern, high-yield orchards through state support for the establishment of vineyards, intensive fruit orchards, and berry orchards cultivated using modern technologies, thereby contributing to the development and increased efficiency of fruit growing and viticulture. The program is regulated by Decision N 927-L approved by the Government of the Republic of Armenia on June 3, 2021.
• For business loans: AMD 150,000 or equivalent in another foreign currency
• For agricultural loans: AMD 50,000 or equivalent in another foreign currency
Depends on the crop to be cultivated and the area of the orchard
"Subsidized interest rate: 7%, 8%* or 10%** for loans provided in AMD"
"Subsidized interest rate: 3%, 4%* or 6%** for loans provided in foreign currency"
* Young agricultural operators: under 18–35 years of age or persons who have reached 63 years of age including individual entrepreneurs, and commercial legal entities. The above age restrictions apply to commercial legal entities that have one founder (participant), shareholder who is also the director of the mentioned commercial legal entity, and whose age does not exceed the age specified for individuals under this subparagraph. In this case, the commercial legal entity must not change its founder (participant) during the term of the loan agreement, and its founder (participant), shareholder must not alienate the share (shares) or any part thereof during the term of the program.
** Agricultural operators in settlements of border communities receiving social assistance included in the list approved by Decision N 1444-N of the Government of the Republic of Armenia, agricultural cooperatives, and citizens who became disabled as a result of combat duty or operations performed in the course of fulfilling military service duties.
Movable and immovable property, agricultural machinery, equipment, other collateral, guarantees of individuals or legal entities
FOR GUARANTORS
If the borrower fails to fulfill their obligations, you will have 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 agreement, and repayment schedule.
Communication will be carried out through the method selected by you.
You will be notified 7 days in advance of any changes to the terms and conditions of the agreement.
A reminder regarding the existing obligation will be sent 1 day in advance.
In case of a delay in loan repayment, you will be notified of this no later than one day afterwards.
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 paid by you for the loan, as well as other damages incurred by you on behalf of the borrower.
Loans are provided to individuals and legal entities, individual entrepreneurs. A person who is a founder or co-founder of a legal entity already benefiting from the program may not be a beneficiary of the program as an individual or as a founder or co-founder of another legal entity. Likewise, an individual beneficiary of the program may not be a beneficiary of the program as an individual entrepreneur registered in their name, or an individual entrepreneur beneficiary may not be a beneficiary as an individual, if the total area exceeds the limit established by the program.
The loan term is 96 months, while the grace period for principal repayment is 60 months. At the customer's request, a shorter grace period may be established.
The minimum loan amount is AMD 150,000 or equivalent in another foreign currency for business loans, and AMD 50,000 or equivalent in another foreign currency for agricultural loans.
The maximum loan amount is calculated based on the orchard area and the estimated costs of establishing 1 ha of orchard:
1) intensive fruit orchard: pome fruits, stone fruits and dry subtropical fruits - AMD 24.96 million (AMD 16.63 million in case of locally produced planting material), with a hail protection system - AMD 35.25 million (AMD 26.91 million in case of locally produced planting material);
2) intensive fruit orchard: nuts - AMD 8.62 million (AMD 7.27 million in case of locally produced planting material), with a hail protection system - AMD 20.69 million (AMD 19.35 million in case of locally produced planting material);
3) vineyard - AMD 17.63 million (AMD 12.53 million in case of locally produced planting material), with a hail protection net, including the purchase and transportation of support posts - AMD 20.43 million (AMD 15.33 million in case of locally produced planting material);
4) berry orchard - AMD 18.29 million (AMD 13.69 million in case of locally produced planting material), with a hail protection system - AMD 28.55 million (AMD 23.95 million in case of locally produced planting material).
The program must be implemented through one contractor organization, which may involve other subcontractors in the performance of its obligations. If an investment is made in an area of 10 ha or more within the framework of the program, the Borrower (only a legal entity, individual entrepreneur or community) may implement the program without involving a contractor, provided that the Borrower also submits an audit opinion on the financial statements reflecting the expenses incurred within the framework of the program.
The total area of the orchards being established may not be less than 0.5 ha and may not exceed 500 ha.
Repayments are established in equal monthly installments or equal principal repayments. In case of a positive decision by the Credit Committee, other schedules for the repayment of interest amounts and principal amounts may also be established.
The total amount of the loan principal and 12 months' interest must not exceed 90.91% of the appraised value of the collateral for business loans and 83.33% for agricultural loans.
The detailed terms and conditions of the program are presented in Decision N 927-L approved by the Government of the Republic of Armenia on June 3, 2021.
You can view the required documents here.
The list of documents required for opening customer accounts at Acba bank
The loan is provided on a non-cash basis, in stages (depending on expenses), provided that the amount provided at each stage may not exceed 40% of the intended loan amount.
The establishment of the orchard must be completed within a maximum of 2 years from the date the loan agreement enters into force. In addition, planting in spring must be carried out by June 1, and planting in autumn by December 1.
Factors for making a positive decision on granting the loan include the assessment of the customer's creditworthiness,
Factors for loan rejection include insufficient financial indicators obtained as a result of the analysis, the customer's poor credit history, insufficient/lack of required collateral, the professional opinion of the Business Consultant, and the professional opinion of the Credit Committee.
A decision on the loan application is made within 1-20 banking days after the customer submits the application and the required package of documents,
The Bank's decision made as a result of reviewing the customer's loan application is communicated to the customer within 1 banking day,
The loan is provided within 3 banking days after the customer submits the complete package of documents required for lending and the collateralization process is completed,
In case of loans provided in foreign currency, changes in the foreign exchange rate may affect loan repayments,
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 disbursement serves as the basis for calculating the annual percentage rate. The annual percentage rate may change depending on changes in the exchange rate published on the official website of the Central Bank of the Republic of Armenia.
The loan may be repaid before the contractual maturity date, in which case the customer pays the interest calculated for the actual term of the loan. If the total amount of repayments made between scheduled repayments under the loan repayment schedule exceeds twice the total amount due for the next scheduled payment, 0-5% of the amount exceeding the double amount is also charged. An exception is loans of up to AMD 5,000,000 or the equivalent in foreign currency provided to micro commercial organizations defined by the Law of the Republic of Armenia "On State Support to Small and Medium Entrepreneurship", as well as secured Business loans of up to AMD 5,000,000 or the equivalent in foreign currency provided to micro individual entrepreneurs and unsecured (Express) business loans, for which, in case of early repayment before the contractual maturity date, only the interest calculated for the actual term of the loan is charged
In case of fluctuations in the interest rates of funds attracted and allocated by the Bank in the financial market and/or changes in the financing interest 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 service fees stipulated by the agreement, notifying the Borrower at least 30 calendar days in advance.
If the loan is provided against collateral of immovable property, a vehicle, agricultural and other-purpose machinery, equipment and devices, and the property is appraised at AMD 30 million or more, the property must also be appraised by a qualified independent appraiser cooperating with the Bank.
The loan is arranged at the Bank's Head Office and branches, except for Komitas, Yeritasardakan, Opera, Teryan, Shinararner, Homplex Mall, Gyumri, Ani, Ashtarak, and Aragats branches. The complete list of the Bank's branches.
Loan repayments are made in the following order (when overdue obligations are being settled:
Penalty/fine,
Interest amount,
Principal amount.
The following payments may be made by the customer for lending:
Immovable property appraisal service fee - AMD 5,000 and more, depending on the area and type of the property,
Notary service fee - AMD 3,000 - 15,000,
Fee for registration of the right to pledge immovable property - AMD 2,000-25,000
Fee for a unified certificate (regarding restrictions on immovable property) - AMD 10,000,
Fees related to pledging other property - AMD 2,000-10,000,
All fees are included in the calculation of the annual percentage rate.
During the term of the agreement, the loan account statement and other information required to be provided under the legislation of the Republic of Armenia are provided free of charge. Statements not required to be provided under the legislation of the Republic of Armenia and duplicate statements are provided for:
up to 6 months (inclusive) of the requested period - free of charge,
from 6 to 12 months (inclusive) of the requested period - AMD 2,000
for a requested period exceeding 1 year - AMD 3,000 (including VAT),
Upon request, information regarding the loan is provided in the form of a reference:
within the next business day following submission of the application - AMD 5,000, when applying through the acba digital system - AMD 3,000 (including VAT),
on the same business day of submitting the application - within 1 hour - AMD 7,000, when applying through the acba digital system - AMD 5,000 (including VAT),
within one to four business days - through a delivery service - AMD 6,000, when applying through the acba digital system - AMD 4,000 (including VAT).
See below
A penalty of 0.13% is calculated for each overdue day.
Penalties applicable in case of the Borrower's failure to fulfill their obligations on time
Qualified independent appraisal companies cooperating with the Bank
Example of calculating the loan interest amount:
Loan amount - AMD 3,000,000
Loan interest rate - 15%
Subsidized loan interest rate - 10%
Non-subsidized loan interest rate - 5%
Loan term - 24 months
Daily interest amount will be calculated as Loan amount (outstanding balance) x Loan interest rate /
365 = (3,000,000 x 15%/365) = AMD 1232.87.
Daily interest amount payable by the customer (3,000,000 x 5%/365) = AMD 410.95.
The subsidized and non-subsidized interest amounts are calculated based on the outstanding loan balance. The customer is required to pay the non-subsidized interest amount.
NOTE: LOAN INTEREST AMOUNTS ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ANNUAL PERCENTAGE RATE SHOWS HOW MUCH THE LOAN WILL COST YOU IN TERMS OF INTEREST AND ALL MANDATORY PAYMENTS FOR THE PROVISION AND SERVICING OF THE LOAN IF MADE WITHIN THE ESTABLISHED TERMS AND AMOUNTS. YOU CAN FIND THE PROCEDURE FOR CALCULATING THE ANNUAL PERCENTAGE RATE HERE.
Foreclosure of Collateral
THE PLEDGED PROPERTY MAY BE FORECLOSED IF THE BORROWER FAILS TO MAKE THE INTEREST AND LOAN REPAYMENTS ON TIME. IF THE VALUE OF THE COLLATERAL IS INSUFFICIENT, THE BORROWER'S OBLIGATIONS WILL BE SETTLED FROM THE BORROWER'S OTHER PROPERTY.
Information Provided to the Credit Registry
NOTE: IF YOU FAIL TO FULFILL OR INCOMPLETELY FULFILL YOUR OBLIGATION, 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. NOTE: 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 MAIL OR ELECTRONICALLY. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT. IT IS AVAILABLE 24/7, IS 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.
Credit history and credit score information
