Rural overdraft

Terms and conditions of overdraft to the legal entities and individuals (private entrepreneurs) engaged in agricultural production and processing of agricultural raw materials


For acquisition of fertilizers, pesticides, seeds, greenhouses, construction materials for construction and repair of cow sheds, equipment, polyethylene envelope, irrigation pumps,  drip irrigation systems and other related equipment, as well as for purchase of fuel



Legal entity or RA citizen at the age of 20 (twenty) or resident individual (private entrepreneur), whose age does not exceed 60 (sixty) and who is engaged in agricultural production and processing of agricultural raw materials   

Overdraft currency




Overdraft amount

Maximum – AMD 500.000 or USD equivalent

Maximum maturity

24 months

Annual interest rate


AMD - 15%

USD – 12%

Overdraft repayment mode

Equal amortization

Overdraft disbursement and usage mode


The overdraft can be used in non-cash form via POS terminals of Buyseri Ashkharh PC, Barseghyan Hayk PE, Sedrakyan Harutyun PE, Victor Hambardzumyan PE, Flash LLC.  

Card type

Visa Electron

DC Young Professional

Card issue terms

●Up to AMD 250,000 or USD equivalent                                             Overdraft on Visa Electron – annual service fee of AMD 1 500 and no required balance,

●AMD 250,001 up to AMD 500,000  or USD equivalent                                  Overdraft on DC Young Professional -  annual service fee AMD 5 000

Overdraft and interest repayment

Every month

Penalty on past-due amount

 0.06% per day


Penalty on past-due interest

0.07% per day


Annual interest rate on past-due overdraft amount

Annual interest rate stipulated by credit agreement

Requirements to the Borrower credit history

Lack of past-due liabilities within 6 months prior to the loan application as well as the total of past-due liabilities shall not exceed 20 days  

Required documents

For individuals – Borrower passport and social security card or identification card,

Private entrepreneurs -   Borrower passport and social security card or identification card, tax code, state registration certificate

 Legal entities – Charter, tax code,  state registration certificate, resolution of the authorized body


*Other documents upon request


The loan application will be rejected if:

1. The customer has failed to submit all documents necessary for getting the loan.

2. Queries to ACRA credit bureau have revealed that the customer (or the co-borrowers, guarantors, as well as co-residing family members, if available) has a negative credit history. The credit history will be deemed as negative, if the customer has or used to have past due payments (20 days past-due on previous obligations within the past 6 months), or loans that were classified in accordance with the “Regulation of Classification of Loans and Receivables and Formation of Reserves for Possible Losses of banks operating in Armenia” jointly approved by the Central Bank of Armenia and Ministry of Finance and Economy.

3. The credit rating has revealed that the borrower is not creditworthy.

4. The body authorized to make resolutions on loan applications within the Bank has not approved the application. 

5. The property offered as collateral is not acceptable for the Bank as discovered after the property appraisal.

6. The loan has been approved, but the applicant has failed to present himself/herself within 10 days after approval or has failed to present the necessary documents.

7. During the lending process the Bank has received information which prejudices the customer’s solvency.


The loan application will be approved if:

1. The customer has submitted the complete package of documentation and the loan application.

2. After the loan application and the required documentation have been submitted, a query is made to ACRA credit bureau regarding the Applicant’s (co-borrowers’, guarantors’, as well as co-residing family members’, if available) credit history.

3. After the Bank discovers that the borrower has a positive credit history or no credit history at all, the Bank shall make an evaluation of the Applicant’s creditworthiness and solvency and site visit the applicant if necessary.

6. After the loan has been approved the parties shall execute all documents as required by the RA legislation and other legal acts, and the loan shall be disbursed thereafter.                 

Loan interests shall be accrued over outstanding loan amount based on the annual nominal interest rate.   

Annual actual interest rate shows how much the loan will cost to the customer in case interests and other payments are repaid in due amounts and specified timelines. Go to this link to see the annual actual interest rate calculation.

In case the loan is extended in foreign currency, changes in foreign currency exchange rate may influence the loan repayments.