Medium loans


Purpose of Loan Capital investments, acquisition of fixed assets, repayment of accounts payable, replenishment of working capital
Loan Amount AMD 100.000.001 -250.000.000 or the equivalent amount in foreign currency
Maximum Terms Up to 60 months (replenishment of working capital) Up to 96 months (capital investments, acquisition of fixed assets, repayment of accounts payable)

Minimum Interest Rate of the Loan

USD 9%
AMD 12%
Commission fee to make and maintain the loan package (to be charged from loan amount) 0,5%

Maximum AMD 1.000.000
Loan and interest repayment mode  Monthly


Annuity, equal amortization, flexible/seasonal, with grace period 

Movabale or non-movabale property may be considered as the loan security means (collateral) with loan/collateral maximum ratio of 70%. 

The amount of AMD 35 000 – 100 000 may be charged for the compilation of documents on real estate (including notary and cadastrial registration of the property). 

Collateral shall be appraised by the independent licensed appraisal companies at the rates set by the appraisal companies.

In case of preterm repayment of loan, the Borrower shall pay a penalty in the amount of 20 (twenty) percent of interest amount envisaged (not accrued yet) under repayment schedule. 

Loan decision is made within 15 business days after the loan application has been submitted.

After the authorized body has made a decision on the loan 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 approval 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 presented for a second discussion by the authorized body in case the loan application is subject to review

AMD 5 000 shall be uniformly charged to consider commercial loan applications.

In case the loan is extended 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 amount of
a) 0.3% of the past due interest
b) 0.5% of the past due loan amount.

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.

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.

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 the Central Bank credit register and/or 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.
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, the Bank shall prepare the loan analysis summary and present it for the discussion of the relevant body authorized to approve the loan.
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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