Business Financing

Project Financing

EIB Financing

1	Provisions	Regardless of Turnover
2	Purpose	Project implementation
3	Currency	AMD, USD, EUR, RUB
4	Maturity	Up to 180 months
5	Interest rate	Contractual
6	Application screening fee	Not defined
7	Issuance fee: chargeable upon loan issuance and not be repayable	Contractual
7		Min. AMD 50,000, max. AMD 600,000
8	Interest redemptions	Monthly
9	Principal sum redemptions	Depending on the customer's future cash flow, without possibility of full credit redemption close to maturity
10	Grace period for the redemption of the principal sum	Up to 24 months
11	Annual interest rate accrued to unused part of the credit line	Contractual
12	Issuance method	Non-cash
13	Borrower, available bank account	Mandatory
14	Method of use	Cash or non-cash
15	Minimum amount	AMD 10,000,000 or a foreign currency equivalent
16	Maximum amount	Up to 70 percent of total project presettlement value
17	Cash withdrawal	Based on the effective tariffs
18	Pledger	Resident and non-resident legal entities in the Republic of Armenia, individual entrepreneurs and individuals of full legal age (18 and over)
19	Loan recovery	Available in Annex 1
20	Penalties, fines	Contractual
21	Other clauses	Available in Annex 2
22	Additional loan repayment collateral	1. Share and all the assets
		2.Guarantees by all the shareholders (participants, ultimate beneficial owners)
		3. funds maintained in Ardshinbank CJSC system (without lien enforcement)
		4. Participants' right of claim to the company (applicant)
		5. In case of available contracts, right of claim thereto
23	Fixed assets, development and real estate insurance	Upon the Bank's request
24	Potential Borrower Selection Criteria	An owner shall submit confirmation of at least 30 percent participation of the investment volume from their own resources subject to the mandatory terms that the "loan/own investment" coefficient shall not surpass the 70/30 ratio
24	Potential borrower selection criteria

Information about Score and Credit History

Important to know

◾The Bank may request additional documents or other information from the consumer based on the “Know Your Customer” principle for the purpose of conducting due diligence on the customer as defined by the RA Law “On Combating Money Laundering and Financing of Terrorism”, as well as ask the consumer additional questions during oral communication (if such a request exists).

◾In accordance with the agreement signed with the United States based on the Foreign Account Tax Compliance Act (FATCA), the Bank may collect additional information to determine your US taxpayer status.

◾ATTENTION: Loan interest is calculated based on the nominal interest rate. The annual percentage rate shows how much the loan will cost you if you pay the interest and all mandatory payments for the loan and its servicing within the specified period and amount. You can find the procedure for calculating the annual percentage rate here.

◾WARNING: Your property (house, car, or other) may be seized in accordance with the law if you fail to make timely repayments of your interest and loan amounts.

◾ATTENTION: In case of failure or incomplete fulfillment of your obligation, the lender will send this data to the credit bureau after 3 business days, where your credit history is formed. You have the right to obtain your credit history from the credit bureau once a year for free. A bad credit history may hinder you from obtaining a loan in the future.

◾ATTENTION: “Your Financial Directory” www.fininfo.am is an electronic system that facilitates the search, comparison of services offered to individuals and the selection of the most effective option for you.

◾ATTENTION: When applying for a loan, the lender will provide you with an individual consumer loan essential terms sheet, which will present the individual terms of the loan to be provided to you.

◾The borrower has the right to unilaterally terminate the loan agreement without giving any reasons within 7 business days following its conclusion, unless a longer period is provided for in the loan agreement (cooling off period). In that case, the borrower is obliged to pay interest to the Bank for the use of the loan amount, which is calculated in accordance with the annual effective interest rate provided for in the loan agreement. No other compensation may be required from the consumer in connection with the termination of the loan agreement.

◾The borrower has the right to fulfill (repay) his obligations under the loan agreement ahead of schedule, regardless of whether such a right is provided for in the loan agreement or not.

◾You have the right to communicate with Ardshinbank OJSC in your preferred way: by mail or electronically. Receiving information electronically is the most convenient. It is available 24/7, is free from the risks of losing paper information, and ensures confidentiality.