Business Credits

  • Up to 60 months
  • 50000 ֏ - 5000000 ֏

Credit calculator

For those who want to get as much money as possible.
Credit amount
֏
50000 5000000
ամիս
12 months 60 months
  • Monthly fee
    ֏ - ֏
  • Credit Interest
    22 % - 24 %
  • Credit amount
    ֏
-
An example of the calculation of interest rate, it is for informational purposes and is not a public offer.

Information

  TERMS
1. Targeted geography RA

2. Targeted market

Resident persons registered in the RA

3. Credit amount1

 50 000-5 000 000 AMD

4. Credit Currency and the Type of one-time Disbursement

  • Armenian dram
  • Via transfer

5. Credit terms 2

12 to 36 months for loans of up to 2 000 000 AMD

12 to 48 months for loans from 2 000 001 to 3 000 000 AMD

12 to 60 months for loans from 3 000 001 to 5 000 000 AMD                                                                           

12 to 60 months for loans of up to 2 000 000 AMD, disbursed based on internal scoring system rating of the Organization

 

 

6. Credit Interest

  • 24% per annum for loans of up to 3 000 000 AMD,
  • 22% per annum for loans of 3 000 001- 5 000 000 AMD                                                  
18% per annum

It is calculated on the actual outstanding balance of the Credit amount                    

7. Actual credit Interest 25․58-31.93% 34․57-37.80%
8. Disbursement fee

2.0%

one-time payment, calculated on the disbursed credit amount and charged at disbursement time                                                                                                                                   

N/A
9. Monthly service fee N/A                                                                                                         

0.7%

calculated on the disbursed credit amount and charged at monthly basis

In case of partial or early full repayment of the loan amount, the total cost of crediting can be proportionally reduced.

In case of early full repayment of the loan, if the actual repayment day does not coincide with the day defined in Repayment Schedule,then the service fee of the last month is calculated on a daily basis for the period from the repayment day defined in the schedule preceding the actual repayment day to the actual repayment day.

10. Principal and Interest payments

  • Annuity option - Principal and interests are paid in equal monthly installments, except the months of grace period3
  • For the month including the day of early repayment of the loan, the interest amount calculated as of the early repayment day is charged.
    • For loans of up to 3 000 000 AMD, one-time grace period of 3or 6 months is available for repayment of the credit amount. The grace period starts at the beginning of the payments.
    • For loans equal or greater than 3 000 001 AMD, grace period may be defined for repayment of the principal amount of the loan at the beginning of the first three credit years of the loan: 3 months each.

11. Security

  • For the credits of up to 500 000 AMD, without guarantee , if the borrower’s FICO≥575 or the borrower has a satisfactory rating according to the internal scoring system of the Organization4.  In other cases, the option of crediting with at least 1 guarantor can be applied.   
  • For the credits of 500 001-1 000 000 AMD, If the borrower’s FICO≥550 or the borrower has a satisfactory rating according to the internal scoring system of the Organization, 1 guarantor is required.  In other cases, the option of crediting with at least 2 guarantors can be applied
  • For credits of 1 000 001 – 2 000 000 AMD, 2 guarantors.
  • For credits of 2 000 001 – 5 000 000 AMD, 2 guarantors are required, at least 1 of whom must be a family member of the borrower and at least 1 of whom must be secured with salary and/or other type of documented income, or 3 guarantors at least one of whom must be a family member.  Additional guarantor/s, can be required.

For the approval of credits of 2 000 001-5 000 000 AMD, it is required that total days overdue for credit obligationsdoes not exceed 89 days during the 12 months prior to the credit disbursement,according to ACRA information.

 
Salary information can be a in a form of reference, contract, statement job order, bank account statement or flow statement, "Nork" CJSC report, etc.
 

12. Fines and Penalties

  • In case of delays

0.13% daily penalty, which is calculated on the amount (including principal, interest and service fee, if applicable) due that month per repayment schedule, but not paid. In case of the end of the credit repayment term, the amount to be paid in the given month is considered as the amount paid in the last month except for the current service fee of the Loan.

The calculation of penalties shall start from the delay of each repayment day defined by the Repayment Schedule and stop on the full repayment day of the overdue liability.

  • In case of partial or early full repayment

0.0%

The total amount of all penalties defined by the Contract cannot exceed the outstanding debt amount available at that moment.

13. Decision making term regarding the loan

Maximum 7 working days after submitting all required documents

 

1. The Borrower can have maximum 3 active Agro/Business " Credit/s (including other types of credit/s disbursed according to previous terms) simultaneously, the outstanding sum of which  cannot exceed 7 000 000 AMD․  The outstanding sum of the borrower's credits without guarantees (including the consumer credit "Salary" and the consumer credit "Online"  ) cannot exceed 5 00 000 AMD.Cases when granted loans were in the portfolio before the entry into force of this edition are exceptions. The borrowers may also have Consumer Credit/s and credits secured by collateral (gold, real estate).

The mentioned term can be in average 20 days more based on credit disbursement day

3. “Grace period” is the period, during which no principal payments of Credit amounts are defined.

4. The evaluation criteria of internal scoring system of the Organization are approved by the Executive Adminsistration.

5.«Borrower's loans and guarantees issued after 01/01/2022 are considered as credit obligation/s

NOTICE

  1. THE ANNUAL ACTUAL INTEREST RATE SPECIFIES THE EXTENT OF THE COST OF THE CREDIT FOR A BORROWER IN CASE OF REPAYING INTERESTS AND OTHER FEES IN A TIMELY AND PROPER MANNER. THE CALCULATION OF THE ANNUAL ACTUAL INTEREST IS PRESENTED BELLOW.
  2. IN CASE THE BORROWER FAILS TO REPAY THE CREDIT AMOUNT AND INTERESTS IN PROPER AND TIMELY MANNER, NEGATIVE INFORMATION ON HIM/HER WILL BE RECORDED IN THE CREDIT REGISTRY.
  3. THE PLEDGED PROPERTY CAN BE FORECLOSED BY THE ORDER DEFINED BY LAW, IF THE BORROWER DOES NOT REPAY THE CREDIT AND INTEREST AMOUNTS IN A PROPER AND TIMELY MANNER. IN THE EVENT OF CLIENT’S FAILURE TO FULFIL THE OBLIGATIONS, WHEN CREDIT OBLIGATIONS ARE REPAID  AT THE EXPENSE OF COLLATERAL, IF THE COLLATERAL IS NOT SUFFICIENT TO COVER CLIENT’S OBLIGATIONS FULLY, THE LATTER CAN BE REPAID TROUGH THE FORECLOSURE  OF OTHER PROPERTY OF THE CLIENT.
  4. IN THE CASE OF CREDITS SECURED BY A GUARANTEE, IF THE BORROWER DOES NOT FULFILL HIS/HER OBLIGATIONS, THE GUARANTOR IS OBLIGED TO REPAY INSTEAD OF THE BORROWER, OTHERWISE THE CREDIT HISTORY OF THE GUARANTOR WILL ALSO HAVE DETERIORATE AND THE GUARANTOR MAY BE DEPRIVED OF HIS/HER PROPERTY.

The Calculation of the Annual Actual Interest

Article 13. The formula and Explanations of AAI calculation

  1. The Annual Actual Interest is calculated taking into account the following formula:

                                                          

Where.

i - The Annual Actual Interest(AAI).

A -The Credit amount (The primary credit amount disbursed by the creditor to consumer).

n - The number of the credit repayment.

N –The number of the last credit repayment.

Kn- the credit repayment amount.

Dn- The period between the credit disbursement and credit repayment dates expressed by the number of the days.

i -the actual annual interest can be calculated, if the other data of the equation is known from the Credit Contract etc.

 Article 14.  The Calculation of the Actual Annual Interest

1. The Actual Annual Interest is calculated at the time of signing the Credit Contract, assuming, that the Credit Contract will be effective in the manner specified by the Contract and the Parties who signed the Credit Contract shall fulfill their liabilities in a proper and timely manner.

2. In case if the Credit Contract specifies provisions which allow deviations and changes in the number and extent of interests and/or other fees included in the total crediting cost of the consumer and it is impossible to identify the number of changes, the Annual Actual Interest shall be calculated so as the interests and/or other fees included in the consumer’s total crediting cost shall be fixed and applied till the end of the Credit Contract term.

3. The following principles are effective in case of calculating the actual annual interest (upon necessity):

1 In case if the credit maximum amount is not specified by the Credit Contract, the disbursed maximum credit amount is one million AMD.

2) If the Credit Contract specifies that the consumer can receive the credit amount part by part, or can choose the date of the credit disbursement, then it’s considered, that the credit amount was disbursed to the consumer totally at the moment of contract signing.

3) In case if the Credit Repayment Schedule or other terms and conditions of the credit repayment are not specified by the Credit Contract, the deadline for the credit repayment is one year.

4) In case if the credit contract defines more than one credit repayment term, the credit repayment shall be fulfilled in the nearest term defined by the Credit Contract, if there is not prescribed anything else by the Credit Contract.

4. The Central Bank, in accordance with its legal acts, can define explanations and samples of AAI (Annual Actual Interest) calculation and formula specified by Article 13.

 

ATTENTION

WHEN APPLYING FOR THE CREDIT, THE CREDITOR WILL PROVIDE INDIVIDUAL BULLETIN ON  ESSENTIAL TERMS OF THE CREDIT, IN WHICH THE INDIVIDUAL TERMS OF THE CREDIT TO BE DISBURSED WILL BE SUBMITTED.

LIST OF REQUIRED DOCUMENTS

/If applicable/

For physical persons

  • passport/identification document  and social card (if available)
  • Certificate of Ownership (if available) of the real estate which relates with agriculture
  • Certificate of registration of agricultural machinery (if available)
  • Certificate of registration of equipment engaged in the agriculture (if available)
  • Reference about the livestock (upon necessity)
  • Reference about family members, residence address (upon necessity)
  • Other documents

Private entrepreneur and legal entities

  • passport/identification document  and social card (if available)
  • Certificate of state registration
  • Tax Code
  • License in case business required license
  • List of fixed and current assets (upon necessity)
  • Current contracts and agreements related with the business (sale, procurement, lease and other, if available)
  • Invoices, acts, payment orders or requests etc. (if available)
  • Reference from the State Tax Inspection on the liabilities (upon necessity)
  • Financial statements (upon necessity)
  • Statement on the banks for the 12 months (upon necessity)
  • The certificate of payer for the fixed payment (if available)

For the legal entities as well as

  • Charter with amendments and participants
  • Certificate from the State registry about the changes in the Charter and participants
  • The participants’ or shareholders’ decision about borrowing the credit
  • Reference about the debit and credit liabilities (mentioning the size of the liability and terms of repayments)
  • Reference about participation (more than 10%) in other legal entity

For Joint Stock Companies reference about the shares

  • From Central Depository for Open Joint Stock Companies
  • From the registrar responsible for Closed Joint Stock Companies

For guarantor/s

  • passport/identification document  and social card (if available)
  • Reference from the employer and/or other document about the income (reference on income from Nork Information System for the last 6 months or statement on bank account for the last 3 months), certificate (s) of ownership
  • Legal entities 

  • Sole entrepreneurs above 18 years old

  • Individuals engaged in agribusiness above 18 years old 

  1. Before signing the credit contract, the Organization provides the Client with an individual bulletin of essential terms of the credit, in which the individual terms of the loan to be provided to the Client are presented.
  2. The Client has the right to unilaterally terminate the credit contract without any reason within 7 (seven) working days (time for reflection) following its conclusion, returning the loan amount in full and paying interest calculated in accordance with the actual annual interest rate stipulated in the agreement.
  3. In case of early repayment, the total cost of crediting for the Borrower shall be reduced proportionally.
  4. The Client has the right to fulfill(repay) the obligations under the credit agreement ahead of schedule, regardless of whether such a right is stipulated in the credit agreement or not.
  5. The credit interests shall be calculated based on the nominal interest rate. The credit interest is calculated on the actual balance of the credit.
  6. The credit is provided to the Client within 1 business day after the signing of the contract. In cases when the fulfilment of credit obligations is secured by a pledge, the rights to which are subject to state registration, the credit is disbursed to the client within 3 business days after the state registration of the Organization’s pledge right.  To receive the credit, the Client submits a statement/reference containing his/her bank/card account number.
  7. The Organization informs the Client about the decision regarding the loan disbursement within one working day after the decision is made. The Organization can inform the Client about the decision made regarding the disbursement of the loan on the territory of the Organization, through a phone call or an e-mail.
  8. To receive the loan, the Client submits a statement/reference containing his/her bank/card account number. The credit amount is transferred to the Client’s bank/card account on the day scheduled for credit issuance.
  9. The Organization sends the information about the Client to the Credit Bureau within 3 (three) working days, and the current information about the loan is regularly updated during the entire term of the loan. The Client’s credit history is formed in the Credit Bureau based on the data received from all lending financial organizations. The Client has the right to receive his/her credit history from the Credit Bureau once a year free of charge.  A bad credit history can prevent the Client from getting a loan in the future. In order to avoid deterioration of the credit history or score, the client needs to make payments according to the schedule defined by the contract and exclude the existence of overdue liabilities on existing loans. Information about credit history is presented on www.absfinance.am and www.acra.am websites.
  10. For credit evaluation, the Organization uses an income and expense evaluation system and/or an internal creditworthiness evaluation system and/or a FICO score. The factors that have the main influence on the income and expenses evaluation system and/or the internal creditworthiness evaluation system are: information on the Client's employment and income, their stability and periodicity, the availability of certifying documents, the amount of income, the amount and structure of expenses, including the monthly amounts allocated to the servicing of existing loans, the total amount of current loans, number of credit requests, existence of overdue obligations, etc., as well as similar information about family members and related parties. Information on the formation of the FICO score is presented on the website.
  11. Factors that have positive impact on loan disbursement:
    • presence of income
    • satisfactory credit rating
    • absence of overdue credit liabilities .
  12. Factors that have negative impact on loan disbursement:
    • unreliability of documents provided by the Client
    • failure to submit required documents
    • negative information received from the ACRA Credit Bureau and/or other specialized organization
    • information that puts into question the information provided/declared by the Client to the Organization
    • information on the borrower that puts into question the recoverability of the credit
    • absence of security required for credit repayment
    • other valid reasons.
  13. The Client is entitled to communicate with the Organization through a preferred means of communication: e-mail or postal service. The electronic means of communication is the most comfortable. It is available 24/7 and is free of the risk of losing information in paper form, as well as ensures confidentiality.
  14. "Your financial informant" is an electronic system that facilitates the search, comparison of services offered to individuals and the choice of the most effective option for the client. http/: www.fininfo.am/.
  15. Disputes arising between the parties can be settled in court, through arbitrations operating in the territory of the RA or through the Financial System Mediator (as prescribed by the RA law on “Financial System Mediator”), located at 0010, Yerevan, 15 M. Khorenatsi Str, “Elite Plaza” business center, 7th floor, e-mail: info@fsm.am, telephone: (+37460) 70-11-11, fax: (+37410) 58-24-21. “AREGAK” UCO CJSC has not waived the right to challenge the decisions of the Financial System Mediator, which means that the Organization can in some cases, appeal the decisions made by the Financial System Mediator against "AREGAK" UCO CJSC in court.
  16. To conduct a proper study of the client as defined by RA law on “Combating Money Laundering and Terrorism Financing”, the Organization may require additional documents or information based on “Know Your Client” principle.
  17. For providing additional information on credit liabilities in the Organization: (statement, reference, etc.)  the following tariffs are applied: provision of statement on repaid loans free of charge for once, if provided within 30 days after repayment - and if provided within 31 days or more - 5000 (five thousand) AMD (VAT included). For existing loans, the provision of information once a month during the term of the contract is free of charge to every client (borrower, guarantor/s, mortgagor/s), and provision of information more than once a month is 3000 ( three thousand) AMD (VAT included) for each client (to the borrower, guarantor/s, mortgagor/s).