Finance the progress of your business with the support of a reliable partner. Obtain a business loan that will ensure the steady growth and development of your business.
When determining the maximum loan amount, the results of the financial and economic analysis of the customer's business activity are taken as a basis.
Financing for a longer term is possible. No minimum term is defined.
AMD: 11.5-17% (actual: 13․18-22․8%)
Foreign currency: 6.5-18% (actual: 7.14-23․85%)
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 pay on their behalf, your credit history will deteriorate, and you may lose your property.
You will be provided with copies of the loan agreement, guarantee agreement, 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.
You will receive a reminder 1 day in advance regarding an existing obligation.
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.
Term | Nominal interest rate | Actual interest rate |
up to 12 months | AMD - 11.5-14.5% USD - 7.5-10.5% EUR - 6.5-9.5% RUR - 9-12% | AMD - 14.27-22.72% USD - 9.81-17.95% EUR - 8.72-16.78% RUR -11.46-19.72% |
13-60 months | AMD - 12-17% USD - 9-15% EUR - 7-13% RUR - 10-18% | AMD - 13.18-20.67% USD - 9.85-18.30% EUR - 7.68-15.98% RUR - 10.95-21.87% |
Loans are provided to legal entities and individual entrepreneur for business purposes.
Business loans are provided to legal entities and individual entrepreneur that have continuous business experience in the construction sector for the last 12 months, in the manufacturing sector for the last 6 months, and in the trade and services sectors for the last 3 months.
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Loan is provided cashless, in AMD and foreign currency (the amount is transferred to the current account and may be withdrawn in cash).
Loan term - maximum 60 months; however, depending on the purpose of the loan and the results of the financial analysis, financing for a longer term is possible. No minimum term is defined.
The minimum loan amount is AMD 150,000; no maximum loan amount is defined.
Business loans may be provided at a fixed interest rate or a floating interest rate.
The floating interest rate (which does not change during the first 60 months of the loan) is 12.9-15.5% for AMD, 9.0-11.00% for USD, and 8.5-10.5% for EUR.
After the 60th month, the annual interest rate for Business Loans with a floating interest rate is set, for AMD loans, at the fixed annual interest rate plus the yield to maturity of Armenian government coupon bonds with a 6-month maturity; for loans provided in USD, at the fixed annual interest rate plus the secured overnight financing rate for a 6-month term in USD (CME Term SOFR USD 6 month) (hereinafter, SOFR); and for loans provided in EUR, at the fixed annual interest rate plus the 6-month EURIBOR rate (hereinafter, EURIBOR). The annual interest rate is changed in the month following each half-year, on the payment date specified in the customer's repayment schedule. The rates of SOFR, EURIBOR, and the yield to maturity of Armenian government coupon bonds with a 6-month maturity are changed on January 1 and July 1 of each year and rounded to two decimal places. For loans provided in USD, from January 1 of each calendar year, the SOFR published on the TSFR6M terminal of the Bloomberg system on the second business day preceding January 1 of that year is used as the basis, while from July 1 of each calendar year, the SOFR published on the TSFR6M terminal of the Bloomberg system on the second business day preceding July 1 of that year is used as the basis. For loans provided in EUR, from January 1 of each calendar year, the EURIBOR rate published on the Bloomberg system on the second business day preceding January 1 of that year is used as the basis, while from July 1, the EURIBOR rate published on the Bloomberg system on the second business day preceding July 1 of that year is used as the basis. If the relevant business day is a non-business day, the SOFR or EURIBOR rate published on the business day preceding that business day for the currency of the loan is used as the basis.
Repayment of the principal and interest is made in equal monthly installments. For loans with a floating interest rate, at each payment, the principal repayment amount is supplemented by the accrued interest as of the date specified in the schedule. 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 total amount of the loan principal and 12 months' interest must not exceed 90.91% of the appraised value of the collateral.
To view the required documents, click here.
The list of documents required for opening customer accounts at Acba bank
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 Entrepreneurhips”, 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, Shinararner, 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.
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.
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:
within the next business day after submitting 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 (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).
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 - 15%
Loan term - 36 months
The daily interest will be:
Loan amount (balance) × Loan interest rate ÷ 365 = (1,000,000×15%÷365) = AMD 410.95
*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
ATTENTION: "YOUR FINANCIAL INFORMANT" IS AN ELECTRONIC SYSTEM THAT MAKES IT EASY TO SEARCH FOR, COMPARE, AND CHOOSE THE MOST EFFECTIVE OPTION FOR INDIVIDUALS.
The Bank participates in a program financed by the EIB, under which Business Loans are provided for the agriculture, agricultural processing, and tourism sectors at a maximum annual nominal interest rate of 11-11.5% and for a term of 24-90 months.
The European Investment Bank, which is the financial institution of the European Union, established under Article 308 of the Treaty on the Functioning of the European Union, participates alongside financial institutions in investment programs that form part of the objectives of the European Union. Loans provided under the program offer beneficiaries a financial advantage expressed in the loan interest rate. This financial advantage is at least 25 basis points per year compared to the annual interest rate offered by Acba bank for similar loans without EIB financing.
For questions regarding Environmental and Social matters related to sub-projects financed with EIB funds, please contact Acba bank, acba@acba.am, (+374 10) 31 88 88.
