The purpose of the Program is to provide cattle breeders in the Republic of Armenia with pedigree cattle at affordable terms, enabling them to replenish their herds with pedigree cattle possessing valuable productive and economic characteristics. The Program is regulated by Decision No. 1392-L approved by the Government of the Republic of Armenia on August 22, 2024.
Movable and immovable property, agricultural machinery, equipment, other collateral, guarantees provided by individuals or legal entities
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 a copy of the loan and guarantee agreements and the repayment schedule.
Communication will be carried out through the method you have selected.
You will be notified 7 days in advance of 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.
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.
Interest rate subsidization by the Government of the Republic of Armenia
No early repayment penalty/fine, loan origination commission, or other fees are charged.
Loans are provided to legal entities, communities (if the respective program is not intended to be implemented through subvention programs), and individual entrepreneurs.
The purchase of pedigree animals is carried out within four months after the loan is approved.
In case of alienation of pedigree cattle acquired within the framework of the Program (with an identification number and documents), such cattle are not eligible for repeated financing.
The loan term is up to 60 months, while the grace period for principal repayment is up to 18 months.
The minimum loan amount is AMD 50,000.
A beneficiary may acquire a maximum of 1,000 heads of pedigree cattle per year, while the outstanding aggregate amount of loans provided within the framework of the Program for one beneficiary may not exceed AMD 1.1 billion.
Repayments are made through monthly principal payments, and the loan interest rate is calculated on the outstanding principal balance.
The aggregate amount of the loan principal and 12 months' interest must not exceed 83.33% of the appraised value of the collateral.
The detailed terms of the Program are set out in Decision No. 1392-L approved by the Government of the Republic of Armenia on August 22, 2024.
You can find the required documents here.
Documents required for opening customer accounts at Acba bank
The loan is provided in AMD on a non-cash basis and is transferred to the supplier's account.
The purchase of pedigree animals is carried out within four months after the loan is approved. During the last ten days of this period, based on the beneficiary's written application and with the approval of the Ministry, the purchase of pedigree animals, and in the case of import, their importation, may be extended for an additional one month.
Factors for a positive decision on providing the loan include the assessment of the customer's creditworthiness.
Factors for rejecting the loan include insufficient financial indicators resulting from the analysis, the customer's poor credit history, insufficient/unavailable 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 following consideration of 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 collateral registration process is completed.
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 aggregate amount of repayments made between scheduled repayments exceeds twice the total amount of the next scheduled payment under the loan repayment schedule, 0-5% of the amount exceeding the double payment may also be charged. An exception is loans of up to AMD 5,000,000 or the equivalent in foreign currency provided to micro commercial organizations defined under the RA Law on State Support to Small and Medium-Sized Enterprises, as well as collateralized Business Loans and Business Loans without collateral (Express) of up to AMD 5,000,000 or the equivalent in foreign currency provided to micro individual entrepreneurs. In case of early repayment of these loans, 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 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 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 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 Bank branches is available here.
Loan repayments are made in the following order (when overdue obligations are being repaid):
Penalty/fine,
Interest,
Principal.
The following fees may be incurred by the customer in connection with obtaining the loan:
Immovable property appraisal service fee - AMD 5,000 and above, depending on the property's area and type;
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 Actual 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 not required to be provided under the legislation of the Republic of Armenia and duplicate statements are provided for a fee:
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 of more than 1 year - AMD 3,000 (including VAT).
If necessary, information regarding the loan may be provided in the form of a certificate:
within the next business day following submission of the application - AMD 5,000; if applying through the acba digital system - AMD 3,000 (including VAT);
on the same business day as the application, within 1 hour - AMD 7,000; if applying through the acba digital system - AMD 5,000 (including VAT);
within one to four business days, through a delivery service - AMD 6,000; if applying through the acba digital system - AMD 4,000 (including VAT).
Please see below.
A penalty of 0.13% is calculated for each day of overdue payment.
Penalties applicable in case 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 = Loan amount (outstanding balance) × Loan interest rate / 365
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 ACTUAL PERCENTAGE RATE SHOWS HOW MUCH THE LOAN WILL COST YOU IF YOU MAKE ALL MANDATORY PAYMENTS RELATED TO THE LOAN INTEREST AND LOAN ORIGINATION AND SERVICING WITHIN THE SPECIFIED PERIODS AND IN THE SPECIFIED AMOUNTS. YOU CAN FIND THE PROCEDURE FOR CALCULATING THE ACTUAL PERCENTAGE RATE HERE.”
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 REPAYED FROM THE BORROWER'S OTHER PROPERTY.
ATTENTION: IF YOU FAIL TO FULFILL OR IMPROPERLY 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 institution through your preferred method, by postal mail or electronically. 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.
Credit history and credit score assessment
