The main objective of the Program is to promote the economical and efficient use of water resources through the introduction of modern irrigation systems. The Program is regulated by Decision No. 927-L of the Government of the Republic of Armenia, adopted on June 3, 2021.
Subsidized interest rate of 12%, 13%* or 14%** for loans provided in AMD
Subsidized interest rate of 7%, 7%* or 8%** 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
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 agreement, and repayment schedule.
Communication will be carried out through the method selected by you.
You will be notified of changes to the terms and conditions of the agreement 7 days in advance.
A reminder regarding your existing obligation will be sent 1 day in advance.
In the event of a delay in loan repayment, you will be informed thereof no later than one day after the delay.
Request information from the lender at any time regarding the outstanding balance of the loan.
Recover from the borrower the amounts paid by you toward the loan, as well as other losses incurred by you on behalf of the borrower.
Interest rate subsidization by the Government of the Republic of Armenia.
No early repayment penalty, loan disbursement commission, or other fees are charged.
Loans are provided to individuals and legal entities and individual entrepreneurs. However, a person who is a founder or co-founder of a legal entity that is already a beneficiary of 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 as an individual entrepreneur registered in their own name, nor may an individual entrepreneur who is a beneficiary of the Program be a beneficiary as an individual, if the total area exceeds the aggregate area limit established under the Program.
The loan term is 48 months, while the grace period for principal repayment is 12 months. With the customer's consent, 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.
In case of introducing a modern irrigation system without establishing an orchard, the maximum amount per 1 hectare established for each beneficiary is AMD 2.3 million for drip irrigation systems, AMD 2.6 million for sprinkler systems, and AMD 15.0 million for an advanced mobile irrigation system /purchase of 1 unit/.
The Program must be implemented through one contractor organization, which may engage other subcontractors in fulfilling its obligations. If an investment is made on an area of 10 hectares or more under the Program, the Borrower (only a legal entity, individual entrepreneur, or community) may implement the Program without engaging a contractor, provided that the Borrower also submits an audit opinion on the financial statements reflecting the expenses incurred under the Program.
No maximum aggregate area is established for the acquisition and introduction of modern irrigation systems without establishing an orchard, while the minimum area is 0.5 hectares.
Repayments are established as equal monthly payments or equal principal repayments.
In case of a positive decision by the Credit Committee, other repayment schedules for interest and principal 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 set out in Decision No. 927-L of the Government of the Republic of Armenia, adopted on June 3, 2021.
You can find the required documents here.
The list of documents required for opening customer accounts at Acba bank
Loans are provided as a lump sum or in stages, on a non-cash basis (if a contractor is involved, the funds are transferred to the contractor's account).
The introduction of modern irrigation systems must be completed within a maximum of 2 years from the effective date of the loan agreement.
The positive decision factors for loan approval include an assessment of the customer's creditworthiness.
Factors for rejecting a loan include insufficient financial indicators identified as a result of the analysis, the customer's poor credit history, insufficient or unavailable collateral, the professional opinion of the Business Consultant, and the professional opinion of the Credit Committee.
A decision regarding the loan application is made within 1-20 banking days after the customer submits the application and the required package of documents.
The decision made by the Bank following consideration of the loan application is communicated to the customer within 1 banking day.
The loan is disbursed within 3 banking days after the customer submits the complete package of documents required for lending and the collateralization process is completed.
In the case of loans provided in foreign currency, changes in the foreign exchange rate may affect loan repayments.
For loans provided in foreign currency, the exchange rate published on the official website of the Central Bank of the Republic of Armenia as of the loan disbursement date is used as the basis for calculating the annual percentage rate. Accordingly, 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 this case, the customer pays the interest calculated for the actual term of the loan. If the total amount of repayments made between scheduled repayments exceeds twice the total amount of the next scheduled payment under the loan repayment schedule, the customer shall also pay 0-5% of the amount exceeding such double payment. An exception is made for 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 for Small and Medium-Sized Entrepreneurship", as well as secured Business Loans and unsecured (Express) Business Loans of up to AMD 5,000,000 or the equivalent in foreign currency provided to micro individual entrepreneurs. In case of early repayment of such loans, only the interest calculated for the actual term of the loan is charged.
In the event of fluctuations in the interest rates of funds attracted and placed by the Bank in the financial market and/or changes 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 established under the agreement by notifying the Borrower at least 30 calendar days in advance.
If the loan is provided against collateral in the form of immovable property, a vehicle, agricultural or other-purpose machinery, equipment, or 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 processed at the Bank's Head Office and branches, except for the Komitas, Yeritasardakan, Opera, Teryan, Shinararner, Homplex Mall, Gyumri, Ani, Ashtarak, and Aragats branches. The complete list of Bank branches.
Loan repayments are made in the following order (in case of overdue obligations):
Penalty/fine,
Interest,
Principal.
Real estate appraisal service fee - AMD 5,000 and above, depending on the area and type of the property;
Notarial service fee - AMD 3,000-15,000;
Fee for registration of the certificate 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 free of charge under the legislation of the Republic of Armenia are provided free of charge. Statements and duplicate statements that are not mandatory under the legislation of the Republic of Armenia are provided as follows:
For a period of up to 6 months (inclusive) - free of charge;
For a period of 6 to 12 months (inclusive) - AMD 2,000;
For a period exceeding 1 year - AMD 3,000 (including VAT).
Within the next business day following submission of the application - AMD 5,000; when applying through acba digital - AMD 3,000 (including VAT);
On the same business day, within 1 hour - AMD 7,000; when applying through acba digital - AMD 5,000 (including VAT);
Within one to four business days, through delivery service - AMD 6,000; when applying through acba digital - AMD 4,000 (including VAT).
See below.
A penalty of 0.13% is calculated for each day of overdue payment.
Penalties applicable in case the Borrower fails to fulfill its obligations on time
Qualified independent appraisal companies cooperating with the Bank
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 is calculated as Loan amount (outstanding balance) × Loan interest rate / 365 = (3,000,000 × 15% / 365) = AMD 1,232.87.
Daily interest payable by the customer: (3,000,000 × 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.
ATTENTION: LOAN INTEREST IS CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ANNUAL PERCENTAGE RATE SHOWS HOW MUCH THE LOAN WILL COST YOU, INCLUDING INTEREST AND ALL MANDATORY PAYMENTS FOR 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 PERCENTAGE RATE CAN BE FOUND HERE.
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 REPAYABLE FROM THE BORROWER'S OTHER PROPERTY.
ATTENTION: IF YOU FAIL TO FULFILL YOUR OBLIGATION OR FULFILL IT INCOMPLETELY, THE LENDER WILL SEND SUCH 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 institution through your preferred method, by postal communication or electronically. Receiving information electronically is the most convenient option. It is available 24/7, is free from the risks associated with loss of 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
