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 approved by the Government of the Republic of Armenia on June 3, 2021.
individuals and legal entities,
individual entrepreneurs
Subsidized interest rate: 12% or 13%*, 14%** for loans provided in AMD
Subsidized interest rate: 7%, 7%*, 8%** for loans provided in foreign currency
* Young individuals engaged in agricultural activities who are under 35 years of age or have reached the age of 63, including individual entrepreneurs, as well as commercial legal entities. The above age restrictions apply to commercial legal entities having one founder (participant), shareholder who is also the director of the respective commercial legal entity, provided that the latter's age does not exceed the age established for individuals under this subpoint. Moreover, in such cases, during the term of the loan agreement, the commercial legal entity must not change its founder (participant), and the latter founder (participant), shareholder must not alienate their ownership interest (shares) or any part thereof during the term of the Program.
** Operators of settlements in border communities receiving social assistance and included in the list approved by Government Decision No. 1444-N, agricultural cooperatives, and citizens who became disabled as a result of combat duty or operations performed in the course of fulfilling military service obligations.
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 7 days in advance of any changes to the terms of the agreement.
A reminder regarding the existing obligation will be sent 1 day in advance.
In the event of a delay in loan repayment, you will be notified of this no later than one day after the delay occurs.
Interest rate subsidy provided by the Government of the Republic of Armenia;
No early repayment penalty/fine, loan disbursement commission, or other fees are charged.
Loans are provided to individuals and legal entities and individual entrepreneurs. In addition, 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 this results in exceeding the total area limit established by the Program.
The loan term is 48 months, and the grace period for principal repayment is 12 months. By agreement with the customer, 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.
For the construction of water reservoirs without orchard establishment, the maximum amount is AMD 2.0 million per each 1,000 cubic meters of reservoir capacity.
The Program must be implemented through one contractor organization, which may engage other subcontractors in fulfilling its obligations. Within the framework of the Program, in case of construction of a water reservoir with a capacity of 10,000 cubic meters or more, 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 within the framework of the Program.
The capacity of water reservoirs constructed without orchard establishment may range from 1,000 to 100,000 cubic meters.
Repayments are established as equal monthly installments or equal principal repayments.
Upon a positive decision of the Credit Committee, other repayment schedules for interest and principal may also be established.
The total amount of the loan principal and interest for 12 months must not exceed 90.91% of the appraised value of the collateral for business loans and 83.33% for agricultural loans.
The detailed terms of the Program are set forth in Decision No. 927-L approved by the Government of the Republic of Armenia on June 3, 2021.
You can find the required documents here.
List of documents required for opening customer accounts at Acba bank
Loans are provided either as a lump sum or in stages, on a non-cash basis.
Construction of the water reservoir must be completed within a maximum of 2 years from the date the loan agreement enters into force.
Factors for making a positive decision on loan provision include the assessment of the customer's creditworthiness.
Factors for rejecting a loan application include insufficient financial indicators identified as a result of the analysis, the customer's poor credit history, insufficient/unavailable required 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 Bank's decision resulting from the 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 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 such cases, the customer pays the interest calculated for the actual term of the loan. If the total amount of repayments made between scheduled repayment dates exceeds twice the total amount of the next scheduled payment under the loan repayment schedule, the customer must also pay 0-5% of the amount exceeding such double payment. Exceptions are loans of up to AMD 5,000,000 or the equivalent in foreign currency provided to micro commercial organizations defined by the RA Law “On State Support to 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 the 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 stipulated by the agreement, 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 other assets, and the value of the property is 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 the Komitas, Yeritasardakan, Opera, Teryan, Shinararner, Homplex Mall, Gyumri, Ani, Ashtarak, and Aragats branches. The complete list of the Bank's branches is available.
Loan repayments are applied in the following order (in case of overdue obligations):
penalty/fine,
interest,
principal.
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 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 that must 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 more than 6 months and up 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 if the Borrower fails to fulfill their 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 will be calculated as Loan amount (outstanding balance) × Loan interest rate / 365 = (AMD 3,000,000 × 15% / 365) = AMD 1,232.87.
Daily interest payable by the customer = (AMD 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 LOAN DISBURSEMENT AND SERVICING, PROVIDED THAT SUCH PAYMENTS ARE MADE WITHIN THE SPECIFIED TERMS 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 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 WILL BE 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 IN THE MANNER YOU PREFER, BY POSTAL OR ELECTRONIC MEANS. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT OPTION. 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.
Information on Credit History and Credit Score Assessment
