The purpose of the Interest Rate Subsidization Program for Loans Provided to the Agri-Food Sector is to support the implementation of current and investment expenses in the agri-food sector of the Republic of Armenia.
Loan amount: 1,000,000 - 2,000,000 AMD
Nominal interest rate: 13%, subsidized interest rate: 13%
Effective interest rate: 14% (fully subsidized)
Provided to: Individuals, Legal Entities, and Private Entrepreneurs
Duration: Up to 36 months
Security: Without collateral, with a credit guarantee, and/or with collateral security
Currency: Armenian Dram (AMD)
Grace period for principal and interest repayment: 6 months
No additional fees
Interest rate subsidization by the RA Government
6-month grace period for principal and interest repayment
Loan subsidization is terminated if
The requirements defined by the program have not been maintained.
The loan was not used for its intended purpose (loan usage is considered non-purposeful if the funds were not used in the agri-food sector).
Manifestly false information was provided by the borrower.
There are cumulative overdue obligations of more than 90 days over the past 12 months for the given loan, or the loan is not classified as "Standard" class based on objective criteria due to overdue obligations to the bank.
The borrower has received financing from more than one financial institution for the same purpose.
The subsidized amount of the loan is subject to refund:
If the beneficiary uses the loan for non-intended purposes or provides false information, the subsidy amount provided up to that point is subject to refund to the RA State Budget (including cases where the loan agreement is terminated early at the borrower's initiative and the work is not completed).
The loan interest amounts are subsidized within the framework of the RA Government's "Program for Subsidizing Interest Rates of Loans Provided to the Agri-Food Sector." In the event that the subsidy is terminated, the borrower is obligated to pay the nominal interest rate.