SMART BUSINESS LOAN

Loans without collateral:

• Loan amount - AMD 150,000 - 10,000,000 / equivalent in foreign currency

• Loan commission - 1.9%

Loans secured by collateral:

• Loan amount - AMD 150,000 - 20,000,000 / equivalent in foreign currency

• Loan commission - 1%

• Customer - Legal entities/individual entrepreneurs (IEs) with at least 12 months of business activity

• Loan disbursement method - cashless (the amount is transferred to the current account and may be withdrawn in cash)

• Interest rate type - fixed

• Repayment method - annuity, in equal monthly installments

• Purpose - for use in business

• In case 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 defined by the agreement, notifying the Borrower at least 30 calendar days in advance.

• The total amount of the loan principal and 12 months' interest must not exceed 90.91% of the appraised value of the collateral.

Learn more.
About the amount of possible additional payments:
Loan Tariffs
Previous Loan Tariff Terms
Exclusion List

• Identity documents of the founders, director, and chief accountant,
• License (if the activity is licensed)
• Copy of the legal entity’s charter, ¹
• Copy of the statement from the State Register of Legal Entities (with its inserts) and copy of the Taxpayer Identification Number (TIN) — required for legal entities as necessary, ¹
• Statement from the State Register of Legal Entities — ^{1, 2, and 3}

Depending on various circumstances, additional documents and information may be required.

Decision of the competent body (general meeting) on obtaining the loan, ³

Identity documents of the guarantors.

_{1 The documents are required if the information or documents are missing or incorrect in the database of the RA Ministry of Justice State Register.}

_{2 The statement can be obtained from the Bank or from an agent of the RA Ministry of Justice State Register. Submission of the statement is mandatory for legal entity clients, and for individual entrepreneur clients, it is mandatory if the certificate from the State Register of Legal Entities with its inserts is not submitted.}

_{3 It can be submitted after the Bank has made a positive decision regarding the loan approval.}

_{If you do not have an account with the Bank, you must also submit the original documents required to open an account with “ACBA Bank” CJSC.}

Factors for approving a loan include the assessment of the customer’s creditworthiness,

• Factors for loan rejection include insufficient financial indicators identified during the analysis, the customer’s poor credit history, the professional opinion of the business advisor, and inadequate or missing required collateral.
• The decision on the loan application is made within minutes after the customer submits the application and the required documents,
• The customer is informed of the Bank’s decision on the loan application within 1 banking day,
• The loan is disbursed within 3 banking days after the customer submits the complete set of required documents for the loan and the collateral process is completed,
• For loans issued in foreign currency, changes in the exchange rate may affect loan repayments,
• For foreign currency loans, the official exchange rate published on the RA Central Bank’s website on the loan disbursement date serves as the basis for calculating the annual percentage rate. The annual percentage rate may change depending on fluctuations 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 term, in which case the customer pays interest calculated for the actual loan period. If the total of repayments made between the scheduled installments exceeds twice the amount due for a scheduled installment under the loan schedule, an additional 0.5% is charged on the portion exceeding the double amount.
• In the financial market, due to fluctuations in the interest rates of funds attracted and allocated by the Bank, changes in the financing interest rate, the presence of such circumstances, or if the Borrower uses the loan for purposes other than intended, the Bank may unilaterally adjust the interest rates and fees specified in the contract, notifying the Borrower at least 30 calendar days in advance.
• In case of interest rate fluctuations of the funds attracted and placed in the financial market by the Bank and/or changes of financing interest rate and/or the existence of such preconditions and/or use of the loan by the Borrower not for the purpose, the Bank may unilaterally change the interest rates set by the contract notifying the Borrower at least 30 calendar days in advance.
• The loan is processed at the Bank’s branches or through the customer’s aca digital system, within the framework of loan offers.

Loan repayments are made in the following order (in case of overdue obligations):

• Penalty / fine,
• Interest,
• Principal amount.

Learn more:

Smart Business Loan Calculator

Penalties applied if the Borrower fails to meet their obligations on time.

Interest rate calculation

For loans provided by “Acba bank” OJSC, interest is calculated daily on the declining balance of the loan. For credit lines, interest rate is calculated daily on the utilized amount of the credit line, using the following formula:

• Daily interest = Loan amount (outstanding balance) × Annual interest rate ÷ 365
• Example of daily interest calculation:
• Loan amount – AMD 1,000,000
• Annual nominal interest rate – 18%
• Loan term – 36 months
• Daily interest will be:
• Loan amount (outstanding balance) × Interest rate ÷ 365 = (1,000,000 × 18% ÷ 365) = 493.15 AMD
• *The repayment amount may vary depending on the number of days in the given month.

YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL INSTITUTION USING YOUR PREFERRED METHOD - BY MAIL OR ELECTRONICALLY. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT. IT IS AVAILABLE 24/7, FREE FROM THE RISKS ASSOCIATED WITH PAPER DOCUMENTS, AND ENSURES CONFIDENTIALITY.

Information provided to the credit register.

NOTE: IN CASE OF FAILURE OR IMPROPER PERFORMANCE OF YOUR OBLIGATIONS, AFTER 3 BUSINESS DAYS THE LENDER SHALL SUBMIT SUCH DATA TO THE CREDIT BUREAU, WHERE YOUR CREDIT HISTORY IS FORMED. YOU HAVE THE RIGHT TO OBTAIN YOUR CREDIT HISTORY FROM THE CREDIT BUREAU FREE OF CHARGE ONCE PER YEAR.

NOTE: BAD CREDIT HISTORY MAY HINDER YOUR ABILITY TO OBTAIN A LOAN IN THE FUTURE.

During the term of the agreement, extracts are provided via email on a thirty-day basis, unless the customer selects another communication option.

FOR GUARANTORS:

We hereby inform you that:

If the borrower fails to perform the obligations, you will be required to make payments on their behalf, your credit history will deteriorate, and you may be deprived of your property.

You will be provided with copies of the loan agreement, the guarantee agreement, and the repayment schedule.

Communication will be carried out in the manner selected by you.

You will be notified of any changes to the terms of the agreement 7 days in advance.

A reminder regarding the existing obligation will be sent 1 day in advance.

In case of delay in loan repayment, you will be informed thereof no later than one day after the delay occurs.

THE GUARANTOR HAS THE RIGHT:

At any time, to request information from the lender regarding the outstanding loan amount;

To recover from the borrower the amounts you have paid for the loan, as well as any other damages incurred on behalf of the borrower.

Regarding credit history and score evaluation.