A special financing program for young entrepreneurs and young individuals.
Legal entities whose director is a young person under 35 or whose majority ownership is held by a young person or young persons under 35, individual entrepreneur under 35, as well as young people under 35.
Business Loans:
AMD - 11.9%-12.9%
USD - 9.9%-11.5%
EUR - 8.9%-10.0%
Agricultural loans:
AMD - 12.4%-13.9%
USD- 10.9%-11.9%
EUR - 9.6%-10.9%
For secured loans - immovable property, land, orchards, vehicle (car), agricultural and other machinery, equipment, funds, other goods and materials, cattle (breeding stock), other collateral.
For unsecured loans - Guarantee or without security
FOR GUARANTORS:
If the borrower fails to fulfill their obligations, you will have to pay 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 repayment schedule.
Communication will be carried out through the method chosen 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 late repayment of the loan, you will be informed about it no later than one day later.
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 for the loan, as well as other damages incurred on behalf of the borrower.
Legal entity and individual entrepreneur customers who receive financing under the “Youth in Business” program have the opportunity to receive any one of the VISA Business, UnionPay Business, or ARCA Business card types in AMD or foreign currency (dollar or EUR), without a card account servicing fee for the first year when ordered through the acba digital system, and may also receive acba digital free of charge, with no limitation on the number of users.**
Acba bank, together with the European Bank for Reconstruction and Development, offers Business and agricultural loans under the “Youth in Business” program on special terms, with the aim of supporting SME customers under 35 and young people under 35, developing their businesses and activities, and promoting business activity.**
Business and agricultural loans are provided at the following nominal interest rates.
Business Loans | AMD | USD | EUR |
Nominal interest rate for secured loans up to and including AMD 50 million or equivalent in foreign currency | 12.9% | 11.5% | 9.9% |
Actual interest rate for secured loans up to and including AMD 50 million or equivalent in foreign currency | 13.7% | 12.2% | 10.4% |
Nominal interest rate for secured loans exceeding AMD 50 million or equivalent in foreign currency | 11.9% | 9.9% | 8.9% |
Actual interest rate for secured loans exceeding AMD 50 million or equivalent in foreign currency | 12.6% | 10.4% | 9.3% |
Nominal interest rate for unsecured Business Loans | 12.6% | 11.5% | 10.0% |
Actual interest rate for unsecured Business Loans | 14.52-21.3% | 13.27-19.9% | 11.6-18.1% |
Agricultural loans | AMD | USD | EUR |
Nominal interest rate for secured loans up to and including AMD 50 million or equivalent in foreign currency | 13.9% | 11.9% | 10.9% |
Actual interest rate for secured loans up to and including AMD 50 million or equivalent in foreign currency | 14.82% | 12.6% | 11.5% |
Nominal interest rate for secured loans exceeding AMD 50 million or equivalent in foreign currency | 12.9% | 10.9% | 9.9% |
Actual interest rate for secured loans exceeding AMD 50 million or equivalent in foreign currency | 13.7% | 11.5% | 10.4% |
Nominal interest rate for unsecured loans up to and including AMD 5 million or equivalent in foreign currency | 12.4% | 10.9% | 9.6% |
Actual interest rate for unsecured loans up to and including AMD 5 million or equivalent in foreign currency | 14.7-23.6% | 12.97-21.7% | 11.51-20.2% |
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
Repayment of the loan principal and interest is made in equal monthly installments. Depending on the type of business activity, another repayment schedule for interest and principal may be established
Interest is calculated on the declining loan balance
The security for the loan may be immovable property, a vehicle (car), agricultural machinery, equipment, funds, other goods and materials, as well as guarantees, where necessary
The total amount of the loan principal and 12 months' interest must not exceed 90.91% of the appraised value of the collateral
The Business Loan is provided cashless, in AMD and foreign currency (the amount is transferred to the current account and may be withdrawn in cash)
The factors for a positive decision on providing a loan are the assessment of the customer's creditworthiness,
The factors for loan rejection are insufficient financial indicators resulting from the analysis, poor credit history of the customer, insufficient/lack of required security, the professional opinion of the Business Consultant, and the professional opinion of the Credit Committee.
A decision regarding the loan application is made within 20 banking days after the customer submits the application and the required package of documents,
The Bank's decision resulting from the review 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 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 Armenia on the date of loan provision is used as the basis for calculating the annual actual interest rate; moreover, the annual actual interest rate may change depending on changes in the exchange rate published on the official website of the Central Bank 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 due under the loan repayment schedule, the customer also pays 0-5% of the amount exceeding the double amount. Exceptions are 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 for Small and Medium-Sized Entrepreneurhip”, 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 entrepreneur, for which, in case of early repayment before the contractual maturity date, 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 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.
If the loan is provided against collateral in the form of immovable property, a vehicle, agricultural and other machinery, equipment and 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 Komitas, Yeritasardakan, Teryan, Shinarnirner, Homplex Mall, Gyumri, Ashtarak, and Aragats branches. The full list of the Bank's branches.
Loan repayments are made in the following order (in case of overdue obligations:
Penalty/fine,
Interest,
Principal:
See below.
Penalties applied in case of the Borrower's failure to fulfill their obligations on time
Qualified independent appraisal companies cooperating with the Bank
Penalties applied in case of the Borrower's failure to fulfill their obligations on time:
A penalty of 0.13% is calculated for each overdue day.
The following payments may be made by the consumer for obtaining the loan:
Immovable property 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 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 interest rate.
Detailed information on the amount of possible additional payments and all the points presented: Loan Tariffs.
Previous Loan Tariff Terms.
Interest Calculation:
The interest on loans provided by “ACBA BANK” OJSC is calculated daily on the declining loan balance, while the interest on credit lines provided is calculated daily on the used amount of the credit line, according to the following formula:
Daily interest = Loan amount (balance) x Annual interest rate ÷ 365
Example of daily interest calculation:
Loan amount - AMD 1,000,000
Annual nominal interest rate - 12.9%
Loan term - 36 months
The daily interest will be:
Loan amount (balance) × Loan interest rate ÷ 365 = (1,000,000×12.9%÷365) = AMD 353.42
*the repayment amount may vary depending on the number of days in the given month
ATTENTION: LOAN INTEREST IS CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ANNUAL ACTUAL INTEREST RATE SHOWS HOW MUCH THE LOAN WILL COST YOU IF ALL MANDATORY PAYMENTS FOR THE PROVISION AND SERVICING OF THE LOAN ARE MADE WITHIN THE SPECIFIED TERMS AND IN THE SPECIFIED AMOUNTS. YOU CAN FIND THE PROCEDURE FOR CALCULATING THE ANNUAL ACTUAL INTEREST RATE AT THE FOLLOWING ADDRESS.
YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL ORGANIZATION THROUGH YOUR PREFERRED METHOD, BY POSTAL MAIL OR ELECTRONICALLY. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT. IT IS AVAILABLE 24/7, FREE FROM THE RISKS OF LOSS OF PAPER INFORMATION AND ENSURES CONFIDENTIALITY.
Collateral Foreclosure.
THE PLEDGED PROPERTY MAY BE FORECLOSED IF THE BORROWER FAILS TO MAKE INTEREST AND LOAN REPAYMENTS 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 INCOMPLETELY 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.
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. A statement not required to be provided under RA legislation, as well as a duplicate of a statement, is provided for:
up to 6 months (inclusive) of age - free of charge,
6 to 12 months (inclusive) of age - AMD 2,000 (including VAT),
more than 1 year of age - AMD 3,000 (including VAT).
Certificates are provided:
up to 6 months (inclusive) of age - free of charge, 6 to 12 months (inclusive) of age - AMD 2,000 (including VAT), more than 1 year of age - AMD 3,000 (including VAT),
on the same business day, within 1 hour - AMD 7,000 (including VAT); when applying through the acba digital system - AMD 5,000 (including VAT)
through the delivery service - AMD 6,000 (including VAT); when applying through the acba digital system - AMD 4,000 (including VAT)
Duplicates of documents are provided for:
documents up to 3 months old - AMD 1,000 (including VAT),
documents 3 -12 months old - AMD 2,000 (including VAT),
documents 3 years old - AMD 5,000 (including VAT),
documents more than 3 years old - AMD 10,000 (including VAT).
FOR GUARANTORS:
We inform you that
If the borrower fails to fulfill their obligations, you will have to pay 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 repayment schedule.
Communication will be carried out through the method chosen 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 late repayment of the loan, you will be informed about it no later than one day later.
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 they have paid for the loan, as well as other damages incurred on behalf of the borrower.
Regarding credit history and score assessment
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For legal entities:
Identity documents of the founders, director, and chief accountant,
certificate of ownership or lease agreement for the business premises,
license (in case of licensed activity),
certificate from the tax inspection regarding obligations,
reports for the last 1 year submitted electronically to the Tax Inspection and notification confirming that the reports have been accepted,
certificate of ownership of the collateral(s), technical passport, identity documents of the owners, marriage certificate, and photographs of the collateral,
copy of the legal entity's charter,1
copy of the certificate of state registration of legal entities (with its inserts) and copy of the TIN (for legal entities, required as necessary),1
certificate from the State Register of Legal Entities,1,2,3
extract from the register in case of a joint-stock company.3
decision of the authorized body (general meeting) regarding taking out a loan,3
Depending on various circumstances, additional documents and information may be required.
1 Documents are required if the data or documents are missing or incorrect in the database of the State Register of the RA Ministry of Justice.
2 The certificate can be obtained from the Bank or the State Register Agency of the RA Ministry of Justice; submission of the certificate by legal entity customers is mandatory, while for individual entrepreneur customers it is mandatory if the certificate of state registration of legal entities with its inserts is not submitted.
3 May be submitted after the Bank makes a positive decision to provide the loan.
If you do not have an account with the Bank, you must also submit the required documents (originals) for opening an account with “ACBA Bank” OJSC. Details here.
For individuals:
Identity document
A copy of the document containing the Social Services Number as prescribed by law, or the original certificate issued by the state register-maintaining authority regarding obtaining or not obtaining a Social Services Number
Documents confirming ownership of the collateral offered by the customer as security for the loan
Copies of the passports of guarantors and/or pledgors
For the purpose of proper customer due diligence as defined by the RA Law “On Combating Money Laundering and Terrorist Financing”, the Bank may, based on the “Know Your Customer” principle, require additional documents or other information, as well as ask additional questions during oral communication
Other documents may also be required, if necessary
