ENERGY SAVING LOAN




Looking for the ways to decrease the cost price of your production and services offered? ARARATBANK offers a new loan. Due to this loan you will save energy, cut your costs as well as contribute to the protection of green environment...

Loan purpose 1.Replacement of heat supply systems. 
2.Replacement of incandescent light bulbs with new fluorescent lamps.
3.Replacement of old neon lamps with new T5 lamps. 
4.Thermal solar systems for sanitary hot water.
5.Replacement of conventional heating systems with heat pumps. 
6.Installation of solar photovoltaic systems (up to 350kw).
7. Insulation of external walls and roofs.
8.Replacement of external windows and doors. 
9.Installation of thermostatic valves on radiators. 
10.Supply of energy saving equipment and parts thereof. 
11.Replacement of old heat supply systems with a new upgraded boiler for the centralized heating system. 
12.Replacement of pumps, coolers or other motors.
13.For other purposes.
Loan amount USD equivalent to up to EUR 500 000
Loan disbursement Non-cash
Loan maturity Up to 48 months
Annual interest rate 11%
Loan maturity 49-60 months
Annual interest rate 12%
Mode of interest accrual on the loan balance, accepting year as 360 days
Mode of loan and interest repayments Annuity - each month evenly repaid amount, which includes both the loan and the interest amount. Even amortization - even principal repayments each month, gradually reducing interest amounts calculated over the reducing loan balance.
Loan security Movable or immovable property. Collateral appraisal shall be made by independent licensed appraisal companies at the rates set by appraisal companies.
Loan processing fee to be charged from the loan amount In compliance with SME and commercial loan fees
Customer opportunities Save energy, 
Decrease energy costs, 
Increase profitability and competitiveness,
Upgrade technologies and equipment,
Improve production capacity and efficiency,
Reduce waste and CO2 emissions


.The project should result in energy saving of at least 15%.
.Apart from technical specifications of the equipment/systems to be financed, the Borrower shall submit invoices of such equipment/systems, as well as shall submit technical specifications and energy consumption data of the equipment to be replaced, if possible.
. If the Borrower prematurely repays the loan, he/she will pay a penalty in the amount of 20 (twenty) percent of the interests no accrued yet, however, stipulated by the repayment schedule. 
. Loan decision shall be made in compliance with the SME and Commercial Loan Disbursement Procedure. 
. After the authorized body has made a loan decision, the borrower shall be notified about it within one day. The required documents shall be collected and the loan shall be disbursed within 15 days after the loan disbursement decision has been made. If the loan is not disbursed within the mentioned period, the decision made by the authorized body shall be deemed as void and shall be submitted to the authorized body for a second consideration in case the loan application is subject to review. 
. In case the loan is disbursed in US dollars, changes in foreign currency exchange rate may influence the loan repayments.
.If the borrower fails to fulfill his/her obligations on timely basis, he/she shall pay penalties in the amount of 
a) 0.5% of the past due interests,
b) 0.3% of the past due loan amount.
. If the borrower has 10 (ten) and more past due days within 12 (twelve) months preceding the loan application, а loan processing fee shall be charged from the Borrower twice as much. 
Appraisal companies cooperating with the Bank. 

WARNING 
IF THE BORROWER FAILS TO PERFORM OR DULY PERFORM LOAN OBLIGATIONS UNDER THE LOAN AGREEMENT, ALL LIABILITIES ASSUMED BY THE BORROWER SHALL BE DISCHARGED OUT OF THE PROCEEDS OF REPOSSESSING AND SELLING THE COLLATERAL THAT WAS PLEDGED AS LOAN SECURITY

WARNING 
IF THE BORROWER FAILS TO PERFORM LOAN OBLIGATIONS, THE COLLATERAL AND THE BORROWER’S OTHER PROPERTY (IF THE COLLATERAL HAS LOST ITS VALUE) MAY BE CONFISCATED AND REALIZED BOTH THROUGH DIRECT SALE AND PUBLIC AUCTIONS IN LEGAL OR OUT-OF COURT FORMS.

WARNING 
IF THE BORROWER FAILS TO MAKE TIMELY INTEREST AND PRINCIPAL REPAYMENTS, THE BANK WILL HAVE TO REPORT THAT NEGATIVE INFORMATION TO THE CENTRAL BANK CREDIT REGISTER. 

The loan application will be approved if 

1. the customer submits 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 the Central Bank credit register and/or ACRA credit bureau regarding the customer’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 customer’s creditworthiness and solvency and site visit the applicant if necessary.
4. if the evaluation of creditworthiness shows positive results, the Bank proceeds to appraising the property offered as collateral.
5. if the appraised property offered as collateral is acceptable, an opinion shall be prepared and submitted to the authorized body for consideration. 
6. after the loan has been approved, the parties shall execute all documents (including insurance against accidents of the borrower/co-borrower, the pledged collateral) as required by the RA legislation and other legal acts, and the loan shall be disbursed thereafter.

The loan application will be rejected if

1. the customer has failed to submit all documents necessary for getting the loan
2. queries from the Central Bank Credit Register and/or 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, 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 evaluation of borrower’s creditworthiness has revealed that the borrower is not creditworthy.
4. the property offered as collateral is not acceptable for the Bank as discovered after the property appraisal.
5. the body authorized to make resolutions on loan applications within the Bank has not approved the application.
6. the loan has been approved, but the applicant has failed to present himself/herself within 15 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.




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