Acba bank provides business mortgages to legal entities and individual entrepreneurs. Acquire real estate for your business.
Loans are provided at a floating interest rate for a maximum term of 240 months.
A flexible system for selecting and appraising loan collateral is in place.
The loan is available in AMD, USD, and EUR. The amount is transferred directly to the seller.
No minimum term is set,
maximum 240 months
For the first 36 months:
AMD: 12.5%-16.3%
USD: 8.2%-12.0%
EUR: 7.2%-11.0%
Starting from the 37th month:
AMD: 5.7%-9.5% + floating component
USD: 6.7%-10.5% + floating component
EUR: 6.7%-10.5% + floating component
AMD: 13.24-17.57%
Foreign currency 7.44-12․68%
The real estate being acquired.
A residential apartment or other real estate intended for residential purposes cannot be the subject of a Business Mortgage. In addition to the real estate being acquired, other collateral (movable property, real estate, agricultural machinery, equipment, etc.) and/or guarantees may also serve as security.
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.
Loans are provided to legal entities and individual entrepreneurs for the purpose of acquiring real estate.
Business Mortgages are provided to legal entities and individual entrepreneurs that have had continuous business activity during the last 12 months in the construction sector, the last 6 months in the manufacturing sector, or the last 3 months in the trade and services sector.
The Business Mortgage is provided on a non-cash basis in AMD, USD, or EUR (the amount is transferred to the seller’s current account).
Loan term - maximum 240 months; no minimum term is set.
The minimum loan amount is AMD 5 million, USD 10,000, or EUR 10,000; no maximum loan amount is set.
For Business Mortgages, a down payment of at least 30% of the sale price of the real estate is required. A down payment may not be required if the customer pledges additional real estate.
Business Mortgages are provided at a fixed interest rate for the first 36 months and at a floating interest rate thereafter.
During the first 36 months, the interest rate is 12.5%-16.3% for AMD, 8.2%-12.0% for USD, and 7.2%-11.0% for EUR. Starting from the 37th month, the interest rate is 5.7%-9.5% + floating component for AMD, 6.7%-10.5% + floating component for USD, and 6.7%-10.5% + floating component for EUR. In certain cases, the Business Mortgage may be provided at a lower interest rate.
Depending on the customer’s business activity, the loan repayment schedule is set with equal annual repayments of the principal amount. For loans with a variable interest rate, the interest accrued as of the payment date specified in the schedule is added to the principal repayment amount for each payment.
Interest is calculated on the declining outstanding loan balance.
For Business Mortgages, a fee of 1% of the loan amount is charged from the customer at the time of loan provision for opening, maintaining, and servicing the loan account.
For a Business Mortgage, the real estate being acquired serves as collateral. A residential apartment or other real estate intended for residential purposes cannot be the subject of a Business Mortgage. In addition to the real estate being acquired, other collateral and/or guarantees may also serve as security for the Business Mortgage.
For Business Mortgages provided for the purpose of purchasing real estate, insurance of the purchased real estate may be required. The purchased real estate is insured through an insurance company agreed upon with the Bank throughout the entire term of the Business Mortgage loan agreement, on an annual basis. The insured amount is set annually based on the outstanding loan balance throughout the entire loan term.
For Business Mortgages, the loan-to-collateral ratio must not exceed 70%.
The Annual Percentage Rate is 13.24%-17.57% for AMD, 8.52%-12.68% for USD, and 7.44%-11.57% for EUR.
The nominal interest rate of mortgage loans with a floating interest rate may be changed by the financial institution no more than twice a year.
After the completion of the 36th month, the annual interest rate for loans with a floating interest rate is set, for AMD loans, as the fixed annual interest rate plus the yield-to-maturity rate of Armenian government coupon bonds with a 6-month maturity; for USD loans, as the fixed annual interest rate plus the SOFR rate; and for EUR loans, as the fixed annual interest rate plus the EURIBOR rate.
The annual interest rate is changed in the month following each half-year. The SOFR, EURIBOR, and yield-to-maturity rate 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 information about the required documents, click 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, Shinarnarner, 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.
See below:
Penalties applicablein case the Borrower fails 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 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 (including VAT),
for a period exceeding 1 year - AMD 3,000 (including VAT).
Statements are provided:
on 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 (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)
Duplicate documents are provided:
for documents up to 3 months old - AMD 1,000 (including VAT),
for documents 3-12 months old - AMD 2,000 (including VAT),
for documents up to 3 years old - AMD 5,000 (including VAT),
for 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 can be found in the Loan Tariffs.
Previous Loan Tariffs.
Interest Calculation:
Interest on loans provided by “ACBA BANK” OJSC is calculated daily on the declining outstanding loan balance, while interest on credit lines provided is calculated daily on the utilized amount of the credit line, according to 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 - 15%
Loan term - 36 months
The daily interest will be:
Loan amount (outstanding 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 relevant month.
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.
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.
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 RELEVANT 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.
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.
