Subsidized Agricultural Loan

The loan is provided in AMD:

• Loans are provided to individuals, legal entities and sole proprietors
• Minimum loan amount – 3,000,000 AMD
• Maximum loan amount – 30,000,000 AMD
• Loan term – 12-90 months
• Annual nominal interest rate 13.4-14%, up to 12% of which can be subsidized by the Government of Armenia
• Annual effective interest rate – 14-16%
• Disbursement method - cashless, transferred to the client's bank account
• One-time loan disbursement fee - not applied
• Monthly loan servicing fee - not applied
• Early repayment penalty - not applied
• Loan application review fee - not applied
• Penalties and fines - 0.12% daily on overdue principal, 0.12% daily on overdue interest
• Loan repayment schedule - flexible repayment schedule adapted to the client's cash flows
• Agricultural loans not exceeding 5,000,000 AMD can be provided with guarantee only or with collateral
• Agricultural loans over 5,000,000 AMD are provided exclusively with collateral. For real estate collateral, the loan-to-value ratio must be at least 80%; for movable property - 60%

For possible additional fees, see details - Loan Tariffs

Previous loan terms here

• Up to 12% interest subsidy opportunity by the Government of Armenia
• To promote the development of farms in Armenia, the Company offers flexible repayment schedules with seasonal principal payments possible
• In case of real estate collateral, pledge agreements are concluded for up to 20 years, allowing multiple loans during the pledge term without additional collateral costs
• Quick response to applications - loan application review and decision within up to 3 business days

Individual Borrower

• Identity documents (Armenian passport/ID card)
• Public services number or statement of non-receipt

Legal Entity Borrower

• Copy of state registration certificate (with inserts) and tax code
• Identity documents of founders, director and chief accountant
• Copy of charter
• Statement from state register
• License (if activity is licensed)
• Decision of authorized body on taking the loan
• Tax authority statement on obligations
• Last year's tax reports submitted electronically and acceptance notifications
• Ownership certificate or lease agreement for business premises
• The Company may request additional documents or information under "Know Your Customer" principle

If Guarantor is required

• Guarantor's identity documents (Armenian passport/ID card)
• Public services number or statement of non-receipt
• Income documents if required
• For legal entity: charter, registration certificate, director's passport and tax code

If Collateral is required

• Ownership certificate of collateral property
• Basis documents for ownership if required
• Statement on absence of encumbrances
• Owners' identity documents and public services numbers
• Marriage certificate and spouse's documents if married

Additional documents may be required if necessary

Documents must not be older than 15 days at submission

• Loans are provided for the following purposes:
  • Establishment of intensive orchards
  • Cultivation of non-traditional high-value crops, including legumes
  • Introduction of modern irrigation systems
  • Installation of hail protection nets
  • Construction of reservoirs

Attention: FOR LOANS UP TO 5 MILLION AMD, WHEN APPLYING FOR A LOAN, THE LENDER WILL PROVIDE YOU AND THE GUARANTOR(S) WITH AN INDIVIDUAL SHEET OF CONSUMER LOAN ESSENTIAL TERMS.

Attention: YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL INSTITUTION IN YOUR PREFERRED WAY — BY MAIL OR ELECTRONICALLY. ELECTRONIC COMMUNICATION IS MOST CONVENIENT: AVAILABLE 24/7, NO RISK OF PAPER LOSS, ENSURES CONFIDENTIALITY.

Attention: COLLATERAL MAY BE FORECLOSED IF YOU FAIL TO MAKE TIMELY INTEREST AND PRINCIPAL PAYMENTS. IF COLLATERAL VALUE IS INSUFFICIENT, OBLIGATIONS WILL BE COVERED FROM YOUR OTHER PROPERTY.

Attention: IF YOU FAIL TO FULFILL OBLIGATIONS, THE LENDER WILL SEND INFORMATION TO THE CREDIT BUREAU AFTER 3 BUSINESS DAYS, FORMING YOUR CREDIT HISTORY. YOU HAVE THE RIGHT TO RECEIVE YOUR CREDIT HISTORY FROM THE BUREAU ONCE A YEAR FREE OF CHARGE.

Attention: POOR CREDIT HISTORY MAY PREVENT YOU FROM OBTAINING LOANS IN THE FUTURE.

Attention: HOW TO IMPROVE POOR CREDIT HISTORY: AVOID EVEN ONE-DAY DELAYS, FULLY REPAY PAST OVERDUE PAYMENTS, AVOID GUARANTEEING UNRELIABLE PERSONS.

Attention: LOAN INTEREST IS CALCULATED BASED ON NOMINAL RATE. NOMINAL RATE SHOWS ANNUAL INTEREST COST ON OUTSTANDING BALANCE. INTEREST IS CALCULATED DAILY ON ACTUAL OUTSTANDING PRINCIPAL. CALENDAR YEAR IS USED.

Attention: Nominal interest rate is the rate announced by the financial institution on which interest payments are calculated.

Effective interest rate shows what the nominal rate would be if it included all mandatory fees.

EFFECTIVE INTEREST RATE CALCULATION CAN BE FOUND HERE

Attention: LOAN INTEREST RATE CANNOT EXCEED TWICE THE BANK INTEREST RATE SET BY THE CENTRAL BANK OF ARMENIA.

FOR GUARANTORS

• If the borrower fails to fulfill obligations, you will pay instead, your credit history will worsen, and you may lose your property.
• You will receive copies of loan, guarantee agreements and repayment schedule.
• Communication will be in your chosen method.
• You will be notified 7 days in advance of contract changes.
• SMS reminders will be sent; in case of delay — notified within one day.
• You have the right to request loan balance information and recover paid amounts from the borrower.
• Positive credit history plays an important role in loan decisions. It can be formed by timely repayments and targeted use. Details at www.abcfinance.am and www.acra.am

• Loans are provided to
  1. individuals and legal entities engaged in agriculture in Armenia, farm households
  2. individuals aged 20-65
  3. borrower must act in own name and benefit; lending for third parties is prohibited
  4. at application, no overdue obligations; total overdue days in last 6 months ≤ 15
• Loans are issued at head office and branches
• Decision within max 3 banking days after documents submission
• Upon positive decision, loan disbursed within max 3 banking days
• Disbursement cashless
• Loans for documented or analytically justified stable income farms for agricultural purposes
• Positive decision factors: creditworthiness, stable income, sufficient collateral, positive credit history, long work experience
• Rejection factors: poor financial indicators, insufficient income, frequent delays, high debt burden, specialist/committee opinion
• Credit history reflects credit behavior. Positive history important for approvals. Formed by timely repayments and targeted use. Details at www.abcfinance.am and www.acra.am
• Credit inquiry mandatory. New applications may negatively affect credit score; monitoring inquiries have low/no impact. Inquiries possible throughout contract term
• Loan statements provided free during contract term
• NO EARLY REPAYMENT PENALTIES FOR LOANS UP TO 5 MILLION AMD