The main objective of the program is to increase the accessibility of lending by subsidizing the interest rates on targeted loans provided to legal entities and individual entrepreneurs engaged in the purchase of agricultural raw materials within the territory of the Republic of Armenia. The program is regulated by Decision N 201-L approved by the Government of the Republic of Armenia on February 28, 2019.
*for legal entities operating and purchasing and processing agricultural raw materials in border settlements receiving social assistance (RA Government Decision N 1444-N dated 18/12/2014)
movable and immovable property, agricultural machinery, equipment, other collateral, guarantees of individuals or legal entities
FOR GUARANTORS
If the borrower fails to fulfill their obligations, you will have 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 and guarantee agreements and the 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 case of a delay in loan repayment, you will be notified no later than the following day.
THE GUARANTOR HAS THE RIGHT TO:
Request information from the lender at any time regarding the outstanding loan balance.
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 subsidy provided by the Government of the Republic of Armenia,
No early repayment penalty/fine, loan issuance fee, or other fees are charged.
Loans are provided to legal entities and individual entrepreneurs.
Loans are provided for the purchase/procurement of fruits and vegetables, grapes, milk, agricultural animals by slaughterhouses, and chinchillas.
The loan term is 36 months for loans provided for the purchase/procurement of grapes and 18 months for all other purposes.
The grace period for principal repayment is up to 12 months for loans provided for the purchase/procurement of grapes and up to 6 months for loans provided within the framework of the program for the purchase/procurement of agricultural raw materials and cattle.
The minimum loan amount is AMD 150,000.
Each borrower engaged in processing activities may receive up to AMD 4.0 billion annually for the purchase/procurement of grapes; the outstanding principal of loans provided for the purchase/procurement of fruits and vegetables may not exceed AMD 3.0 billion; the outstanding principal of loans provided for the purchase/procurement of milk may not exceed AMD 1.0 billion. For each borrower engaged in cold storage and export activities, the outstanding principal of loans provided for the purchase/procurement of fruits, vegetables, and grapes may not exceed AMD 3.0 billion. For each borrower engaged in slaughterhouse activities, loans provided for the purchase of agricultural animals are calculated based on the area of the slaughterhouse, at no more than AMD 2.0 million per 15 m², while for a mobile slaughterhouse, at no more than AMD 5.0 million. For each borrower engaged in the export of chinchilla fur, the outstanding principal of loans provided for the purchase of chinchillas may not exceed AMD 50.0 million.
Repayment of the loan principal and interest is made in equal monthly installments.
The total amount of the loan principal and 12 months’ interest must not exceed 90.91% of the appraised value of the collateral.
The detailed terms of the program are set out in Decision N 201-L approved by the Government of the Republic of Armenia on February 28, 2019.
You can find the required documents here.
The list of documents required for opening customer accounts at Acba bank
Factors for making a positive decision on the loan application include assessing the customer’s creditworthiness,
Factors for rejecting a loan application include insufficient financial indicators resulting from the analysis, poor credit history, insufficient or lack of 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 communicates its decision regarding the loan application to the customer within 1 banking day after the loan application has been reviewed.
The loan is provided within 3 banking days after the customer submits the complete package of documents required for lending and the collateral process has been 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 as of the loan provision date is used 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 which 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, 0-5% of the amount exceeding twice the scheduled payment is also charged. An exception is 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 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 these loans, only the interest calculated for the actual term of the loan is charged.
In the event of fluctuations in interest rates on funds raised 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 fees stipulated by the agreement by notifying the Borrower at least 30 calendar days in advance.
If the loan is provided against collateral in the form of real estate, 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 processed at the Bank’s Head Office and branches, except for the Komitas, Yeritasardakan, Teryan, Shinararner, Homplex Mall, Gyumri, Ashtarak, and Aragats branches. The complete list of the Bank’s branches.
Loan repayments are made in the following order (in case of repayment of overdue obligations:
Penalty/fine,
Interest,
Principal amount.
The following payments may be made by the customer for lending:
Real estate 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 the registration certificate of the right to pledge real estate - AMD 2,000-25,000
Fee for a unified statement (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 that must be provided under the legislation of the Republic of Armenia are provided free of charge. Statements that are not mandatory under the legislation of the Republic of Armenia and duplicate statements 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),
Information on the loan may be provided in the form of a statement as required:
within the business day following submission of the application - AMD 5,000; when applying through the acba digital system - AMD 3,000 (including VAT),
on the same business day, within 1 hour - AMD 7,000; when applying through the acba digital system - AMD 5,000 (including VAT),
within one to four business days - through the delivery service - AMD 6,000; when applying through the acba digital system - 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
Example of loan interest calculation:
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 will be: Loan amount (outstanding balance) × Loan interest rate /
365 = (3,000,000 × 15%/365) = AMD 1232,87.
Daily interest payable by the customer = (3,000,000 × 5%/365) = AMD 410.95.
The subsidized and non-subsidized interest on the loan are calculated based on the outstanding loan balance. The customer is required to pay the non-subsidized
interest.
“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, IF MADE WITHIN THE ESTABLISHED TERMS AND AMOUNTS. THE PROCEDURE FOR CALCULATING THE ANNUAL PERCENTAGE RATE CAN BE FOUND HERE.”
Foreclosure of Collateral
PLEDGED PROPERTY MAY BE FORECLOSED IF THE BORROWER FAILS TO MAKE INTEREST AND LOAN PRINCIPAL PAYMENTS ON TIME. IF THE VALUE OF THE COLLATERAL IS INSUFFICIENT, THE BORROWER’S OBLIGATIONS WILL BE REPAID FROM THE BORROWER’S OTHER PROPERTY.
Information Provided to the Credit Registry
ATTENTION: IF YOU FAIL TO FULFILL OR IMPROPERLY FULFILL YOUR OBLIGATION, THE LENDER WILL SEND THE 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 YOUR PREFERRED WAY, BY POST OR ELECTRONICALLY. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT. IT IS AVAILABLE 24/7, FREE FROM THE RISKS OF LOSING PAPER 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
