The objective of the Targeted State Support Measure for Textile Sector Organizations is to promote the diversification of raw material imports for organizations operating in the textile sector. The Measure is regulated by Annex 4 to the Targeted Economic Modernization Program approved by Decision N 355-L of the Government of the Republic of Armenia on March 26, 2020.
Up to 36 months (subsidization period - up to 12 months)
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.
The beneficiary may be a commercial or non-commercial organization registered in the Republic of Armenia or an individual entrepreneur whose turnover, calculated and reported for each reporting period during the 365 days preceding the date of submission of the application, was at least 80% generated from economic activities classified under C13 “Manufacture of Textiles” and C14 “Manufacture of Wearing Apparel” of Section C “MANUFACTURING” of the Classifier of Types of Economic Activity approved by Order N 874-N of the Minister of Economy of the Republic of Armenia dated September 19, 2013,
During the 365 days preceding the date of submission of the application, the economic operator must have exported goods originating in the Republic of Armenia under the economic activities classified under C13 and C14 of Section C from the Republic of Armenia to EAEU member states or to other countries that are not EAEU member states under the “Export” customs procedure,
During the 365 days preceding the date of submission of the application, the economic operator must not have a collection decision issued by the tax authority concerning tax liabilities of AMD 1 million or more in respect of income controlled by the tax authority, and as of the day preceding the date of submission of the application, must not have overdue liabilities in respect of income controlled by the tax authority,
Business loans 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 loan term is up to 36 months, while the subsidization period is up to 12 months,
The minimum loan amount is AMD 150,000, while the maximum amount must not exceed the total value, in AMD, of the goods exported from the Republic of Armenia to EAEU member states or exported to other countries that are not EAEU member states under the “Export” customs procedure during the 365 days preceding the date of submission of the application,
The value of the loan subject includes the purchase price of the loan subject and the costs associated with its import into the Republic of Armenia. The import-related costs specified in this clause must include transportation, customs clearance, value-added tax payment, and other transportation-related costs, where applicable,
Repayments are set as equal monthly installments or equal principal repayments. In case of a positive decision by the Credit Committee, other schedules for repayment of interest and loan principal may also be established.
The total amount of the loan principal and 12 months’ interest must not exceed 90.91% of the appraised value of the collateral.
For information about the required documents, click here.
The list of documents required for opening customer accounts at Acba bank:
The beneficiary of the Measure may receive support only once.
The loan is provided only on a non-cash basis and through bank transfers.
For the purposes of the Measure, raw materials are considered to be the “Inventories” defined by Decision N 235-N of the Government of the Republic of Armenia dated March 11, 2010.
Applications to become a beneficiary of the Measure may be submitted until November 16, 2026. The Measure will remain in effect until December 30, 2026.
Support is provided to economic operators for the purpose of importing raw materials from China, India, Italy, Uzbekistan, South Korea, Bangladesh, Turkmenistan, Tajikistan, the Islamic Republic of Iran, and EAEU member states.
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, and non-compliance with the terms of the Program.
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.
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 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, Opera, Teryan, Shinararner, Homplex Mall, Gyumri, Ani, Ashtarak, and Aragats branches. The complete list of the Bank’s branches is available here.
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:
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; 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:
Business Loan Calculator
In case the Borrower fails to fulfill their obligations on time, applicable penalties
A penalty of 0.13% is calculated for each overdue day.
Qualified independent appraisal companies cooperating with the Bank
Example of loan interest calculation:
Loan amount - AMD 20,000,000
Loan interest rate - 15 %
Subsidized loan interest rate - 6%
Non-subsidized loan interest rate - 9%
Loan term - 24 months
Daily interest will be: Loan amount (outstanding balance) × Loan interest rate / 365 = (20,000,000 × 15 % / 365) = AMD 8219․17.
Daily interest payable by the customer = (20,000,000 × 9 % / 365) = AMD 4,931.5.
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.
