Subsidized Leasing

Leasing is provided in AMD:

• Leasing is provided to individuals/farmers, legal entities and sole proprietors
• Minimum amount - 350,000 AMD
• Maximum amount - 50,000,000 AMD
• Term – 12-60 months
• Annual nominal interest rate: AMD 12-14%, 10-12% of which can be subsidized by the Government of Armenia (for the period set by the government)
• Annual effective interest rate: AMD 2.3-4.6%
• Disbursement method - cashless, transferred to supplier's bank account
• One-time leasing disbursement fee - not applied
• Monthly leasing servicing fee - not applied
• Early repayment penalty - not applied
• Penalties and fines - 0.12% daily on overdue principal
• Repayment schedule - annuity/equal payments

For possible additional fees, see details - Loan Tariffs

Previous loan terms here

• Up to 12% interest subsidy opportunity by the Government of Armenia
• No need for pledge or other security
• Quick response to applications - leasing application review and decision within up to 3 business days

Individual Lessee

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

Sole Proprietor Lessee

• Identity documents (Armenian passport/ID card)
• Public services number or statement of non-receipt
• Statement from state register
• License (if activity is licensed)
• Tax authority statement on obligations
• Last year's tax reports submitted electronically and acceptance notifications
• Ownership certificate or lease agreement for business premises

Legal Entity Lessee

• 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 leasing
• 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

Documents must not be older than 15 days at submission

Important to Know

• Leasing is provided to individuals, legal entities and sole proprietors
• Attention: FOR LEASING UP TO 5 MILLION AMD, THE LESSOR 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 LESSOR 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: LEASING 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.

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

Attention: EFFECTIVE INTEREST RATE CALCULATION CAN BE FOUND HERE.

FOR GUARANTORS

• If the lessee fails to fulfill obligations, you will pay instead, your credit history will worsen, and you may lose your property.
• You will receive copies of leasing, 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 leasing balance information and recover paid amounts from the lessee.
• Positive credit history plays an important role in leasing decisions. Formed by timely repayments and targeted use. Details at www.abcfinance.am and www.acra.am

• Leasing is provided to
  1. individuals/farmers, sole proprietors and legal entities operating in Armenia
  2. individuals and sole proprietors aged 18-70
  3. lessee must act in own name and benefit; prohibited for third parties
  4. at application, no overdue obligations; total overdue days in last 6 months ≤ 15
• Leasing issued at head office and branches
• Decision within max 3 banking days after documents submission
• Upon positive decision, leasing disbursed within max 3 banking days
• Disbursement cashless
• Leasing for documented or analytically justified stable income entities
• Positive decision factors: creditworthiness, stable income, 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
• Leasing statements provided free during contract term