Subsidized agricultural loans are provided to individuals and legal entities, as well as to agricultural cooperatives operating in the agri-food sector of the Republic of Armenia within the framework of the Program on “Subsidizing the interest rates on loans provided to the agricultural sector” of the RA.
More detailed information about the program can be found here.
|Loan amount||300,000 - 1,000,000 (inclusive)∗ |
3,000,000 - 10,000,000
|Loan term||6 - 60 months|
|Annual nominal interest rate∗∗||12 - 14 %|
|Way of disbursement||non-cash disbursement – a transfer to the customer's bank account or issuing a by bank check|
|One-time commission fee||does not apply|
|Monthly loan service fee||does not apply|
|Loan repayment schedule||it is applied a flexible loan repayment schedule in correspondence to the cash flows of the customer|
Early repayment charge (penalty)
|does not apply|
|Loan application fee||does not apply|
|Penalties and fines||0.12% per a day of overdue loan principal|
0.12% per a day of overdue loan interest
|Timeframe for the review and the decision making of the loan application (in case when the applicant/borrower timely submits all necessary documents)||up to 3 working day|
|Loan Security||Pledge and/or Guarantee∗∗∗|
∗ Within the framework of the program, microloans are provided to individuals at 0% interest rate, up to 1 million AMD amount, up to 2 years of loan repayment term, and up to 9 months of grace period for loan repayment.
∗∗ According to the RA Government Decree No.175-L of February 11, 2021, the subsidized loans, will be available to beneficiaries until December 31, 2021, at 0% annual interest rate.
∗∗∗ Loans the amount of which do not exceed 2,000,000 AMD can be provided only with a guarantee, specifically:
Loans over 2,000,000 AMD are provided exceptionally with a pledge. Moreover, in the case of loans secured by real estate, the ratio of the loan amount to the realizable value of the pledged property should be at least 80%, and 60% in the case of movable property.
According to the appendix to the decree N184-L of Government of the RA dated March 7, 2019 subsidizing the interest rates on loans to the agricultural sector includes the following provisions:
Loan interest rate subsidy is terminated in the following cases:
Borrower, legal entity
Necessary documents in case of pledge
Attention! IN CASE OF LOANS UP TO 5 MILLION AMD, THE LENDER SHALL PROVIDE YOU WITH AN CUSTOMER CREDIT INDIVIDUAL KEY FACT STATEMENT, WHICH WILL INCLUDE THE INDIVIDUAL CONDITIONS OF YOUR UPCOMING LOAN.
Attention! YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL ORGANIZATION IN YOUR PREFFERRED WAY: BY MAIL OR BY E-MAIL. THE INFORMATION EXCHANGE THROUGH THE ELECTRONIC MEANS OF COMMUNICATION IS THE MOST CONVENIENT WAY. IT IS AVAILABLE 24/7, IT IS FREE OF PAPER INFORMATION LOSS RISK AND IT PROVIDES CONFIDENTIALITY.
Attention! THE PLEDGED PROPERTY MAY BE SEIZURED AS STIPULATED BY LAW, IF THE BORROWER DOES NOT MAKE REPATMENTS OF INTERESTS AND PRINCIPAL AMOUNT ON TIME. IN CASE OF INSUFFICIENT PLEDGE VALUE, THE BORROWER'S OBLIGATIONS SHALL BE REPAID AT THE EXPENSE OF THE BORROWER'S OTHER PROPERTY.
Attention! IN CASE OF NON-FULFILLMENT OR INCOMPLETE FULFILLMENT OF THE OBLIGATION BY YOU, THE CREDITOR SENDS THIS INFORMATION TO THE CREDIT BUREAU AFTER 3 WORKING DAYS, WHERE YOUR CREDIT HISTORY IS RECORDED. YOU HAVE THE RIGHT TO OBTAIN YOUR CREDIT HISTORY FROM THE CREDIT BUREAU ONCE EVERY YEAR FREE OF CHARGE.
Attention! “BAD” CREDIT HISTORY MAY IMPAIR YOUR ABILITY TO OBTAIN LOANS/CREDITS IN THE FUTURE.
Attention! CREDIT INTERESTS ARE CALCULATED BASED ON NOMINAL INTEREST RATES. THE NOMINAL INTEREST RATE OF THE LOAN SHOWS HOW MUCH IS THE ANNUAL INTEREST OF THE LOAN, WHICH IS CALCULATED ON THE LOAN BALANCE. THE LOAN INTEREST IS CALCULATED ON A DAILY BASIS, BASED ON THE BALANCE OF THE LOAN PRINCIPAL AMOUNT AND IN THE LOAN CURRENCY. THE BASIS FOR CALCULATING THE INTEREST IS THE CALENDAR YEAR.
Attention! THE LOAN INTEREST RATE CANNOT EXCEED THE DOUBLE PERCENTAGE RATE DEFINED BY THE CENTRAL BANK OF ARMENIA.
Dear customer, the annual nominal interest rate is the interest rate that is announced by the financial organization and based on which the amount to be paid by the borrower is calculated.
Annual percentage rate shows what the annual nominal interest rate will be if the latter includes all the mandatory loan service and payment fees.
The annual percentage rate is calculated based on the following formula:
i - Annual Percentage Rate (APR). This is the total cost of the loan/credit made by the customer (borrower) expressed as the annual interest rate of the loan, which includes all interest and other payments that the consumer is obliged to pay upon receipt of the loan, as well as throughout its operation,
A - Credit sum (initial size of credit provided to consumer by creditor),
n - number of the repayment directed to credit coverage,
N - number of the last repayment directed to credit coverage,
Kn- number of the last repayment directed to credit coverage,
Dn- time span between the day or credit extension and the day of making the n-th repayment directed to credit coverage, expressed by number of days.
Example of loan interest calculation
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