The main objective of the Program is to promote the production of non-traditional, high-value crops, including leguminous crops. The Program is regulated by Decision No. 927-L adopted by the Government of the Republic of Armenia on June 3, 2021.
Depends on the crop to be cultivated and the area of the orchard
(60 months for asparagus)
(48 months for asparagus)
• 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 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 provided by individuals or legal entities
FOR GUARANTORS:
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 a copy of the loan agreement, guarantee agreement, and repayment schedule.
Communication will be carried out through the method you have selected.
You will be notified 7 days in advance of any changes to the terms of the agreement.
A reminder regarding the 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.
Interest rate subsidization by the Government of the Republic of Armenia.
No early repayment penalty/fee, loan origination commission, or other fees are charged.
Loans are provided to individuals and legal entities and individual entrepreneurs. However, an individual 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 may not be a beneficiary of the Program as an individual entrepreneur registered in their own name, nor may a beneficiary individual entrepreneur be a beneficiary as an individual, if the total area exceeds the aggregate area limit established by the Program.
The loan term is 24 months (60 months in the case of asparagus), while the grace period for principal repayment is 12 months (48 months in the case of asparagus). A shorter grace period may be established with the customer's consent.
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 total cost per hectare established for the cultivation of non-traditional high-value crops: asparagus - AMD 6.86 million, leek - AMD 3.75 million, arugula - AMD 3.64 million, Brussels sprouts - AMD 4.14 million, Chinese cabbage - AMD 3.96 million, kohlrabi - AMD 4.54 million, kale - AMD 4.32 million, zucchini and pattypan squash - AMD 2.76 million, sweet corn - AMD 2.13 million.
Among non-traditional high-value crops, the beneficiary may also cultivate other non-traditional high-value crops with the approval of the Ministry. In such cases, the maximum total cost per hectare is estimated at AMD 4.0 million. For leguminous crops, the maximum total cost per hectare is estimated at AMD 500,000.
The Program must be implemented through one contractor organization, which may involve other subcontractors in fulfilling its obligations, except for the production of non-traditional high-value crops, including leguminous crops, which may also be carried out without a contractor organization.
The total area cultivated with non-traditional crops, including leguminous crops, may not be less than 1 hectare and may not exceed 30 hectares.
Repayments are made either in equal monthly installments or through 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 may 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 adopted by the Government of the Republic of Armenia on June 3, 2021.
The required documents are available here.
The list of documents required to open customer accounts at Acba bank
The loan is provided by non-cash transfer, in stages.
The cultivation of non-traditional crops, including leguminous crops, must be completed within a maximum of 1 year from the effective date of the loan agreement (in the case of asparagus, the main works must be completed within a maximum of 2 years).
Factors supporting a positive loan decision include the assessment of the customer's creditworthiness.
Factors for loan rejection include insufficient financial indicators resulting from 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 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 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 the case of loans provided in foreign currency, changes in the foreign exchange rate may affect loan repayments.
In the case of 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 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 such cases, the customer pays the interest calculated for the actual term of the loan. If the total amount of repayments made between scheduled installments exceeds twice the total amount of the next scheduled payment, an additional 0-5% may also be charged on the amount exceeding twice the scheduled 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 RA Law on State Support for Small and Medium Entrepreneurship, as well as loans of up to AMD 5,000,000 or the equivalent in foreign currency provided to micro individual entrepreneurs in the form of Business Loans with collateral and without collateral (Express Business Loans). In the case of early repayment of these 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 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, vehicles, agricultural and other-purpose machinery, devices and equipment, 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, Shinarnarner, 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/fee,
Interest,
Principal amount.
The following payments may be incurred by the customer in connection with lending:
Real estate appraisal service fee - AMD 5,000 and above, depending on the area and type of property;
Notary service fee - AMD 3,000-15,000;
Fee for registration of the collateral right over real estate - AMD 2,000-25,000;
Fee for a unified certificate (regarding restrictions on real estate) - 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 RA legislation are provided free of charge. Statements and duplicate statements not required to be provided under RA legislation 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).
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 acba digital - AMD 3,000 (including VAT);
On the same business day, within 1 hour - AMD 7,000; if applying through acba digital - AMD 5,000 (including VAT);
Within 1-4 business days through a delivery service - AMD 6,000; if applying through acba digital - AMD 4,000 (including VAT).
See below.
A penalty of 0.13% is calculated for each overdue day.
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 ANNUAL PERCENTAGE RATE SHOWS HOW MUCH THE LOAN WILL COST YOU IN INTEREST AND ALL MANDATORY PAYMENTS RELATED TO THE PROVISION AND SERVICING OF THE LOAN IF ALL 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 PRINCIPAL REPAYMENTS ON TIME. IF THE VALUE OF THE COLLATERAL IS INSUFFICIENT, THE BORROWER'S OBLIGATIONS WILL BE REPAID FROM THE BORROWER'S OTHER PROPERTY.
ATTENTION: IF YOU FAIL TO FULFILL YOUR OBLIGATION OR FULFILL IT INCOMPLETELY, THE LENDER WILL SEND THIS INFORMATION 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. PLEASE NOTE THAT 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 risk of 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
