Loans to small and medium enterprises

Lending conditions

Overdraft

1	Resource	Own resources of the Bank				Program financing
2	Purpose	Purchase of working assets		Purchase of fixed assets/capital investments, repayment of payables/refinancing of loans from other financial organizations, financing for more than one purposes		Purchase of working assets		Purchase of fixed assets/capital investments, repayment of payables/refinancing of loans from other financial organizations, financing for more than one purposes
3	Currency	AMD, USD, EUR, RUB				AMD
4	Minimum amount (AMD or equivalent currency)	5 100 000		5 100 000		5 100 000
5****	Maximum amount (AMD or equivalent currency)	500 000 000		1 000 000 000		160 000 000
6	Term	max 84 months		max 240 months		max 60 months		max 84 months
	if secured only by cash funds and/or bonds issued by the Bank	unlimited
		for bonds: no more than the bond term
7**	Interest rate (depending on the loan term and client rating)	contractual: calculated on an annual basis for each year of the loan (credit line, overdraft, guarantee, letter of credit, factoring), as follows: LR- CR-RR-NIE+OI ≥ CP LR - effective interest rate of the loan, and in the presence of non-interest parameters, they are calculated for the entire term of the loan, CR - amount of credit risk calculated for the given loan, RR - transfer rate of the resource used for the given loan, NIE –ratio of non-interest expenses for a given loan to the amount of the loan, OI - ratio of other income of the given client to the amount of the loan, CP - the minimum profitability of the capital defined in the given currency. * Application of an interest rate higher than the specified interest rates for each interval is not considered a deviation from the given conditions. ** The interest rate obtained as a result of this calculation cannot exceed twofold the Bank interest rate. For loans provided at the expense of foreign financial organizations, including the resource of energy-efficient loans, the interest rate is set according to the rates effective in the Bank for each loan, keeping the effective interest rate set by the given program. The interest rate of the provided loans cannot exceed that maximum interest rate limit set by the financing organizations.
	if secured only by cash funds and/or bonds issued by the Bank	up to 3 months	3-9 months	9-12 months	above 12 months		_
	in the same currency	deposit rate (inc. bond yield percentage) + 2.5%
	in different currencies: loan – AMD, collateral – foreign currency	deposit rate (inc. bond yield percentage) + 5%	deposit rate (inc. bond yield percentage) + 5.5%	deposit rate (inc. bond yield percentage) + 6%	_
	in different currencies: loan – foreign currency, collateral - AMD	deposit rate (inc. bond yield percentage) + 0%	deposit rate (inc. bond yield percentage) + 1.5%	deposit rate (inc. bond yield percentage) + 2.25%	_
	in different currencies: loan – foreign currency, collateral - foreign currency	аpproved by the collegiate body of the Bank
8	LTV max	Appendix 1
9	Application screening fee, charged at the time of application receipt	contractual: 5.1 - 100.0 mln AMD or equivalent currency, 5 000 AMD
		contractual: 100 000 001 - 300 000 000 AMD or equivalent currency, min 15 000 AMD
		contractual: above 300 000 000 AMD or equivalent currency, min 30 000 AMD
	if secured only by cash funds and/or bonds issued by the Bank (charged for each loan instrument)	5 000 AMD				not charged
10	Issuance fee is charged at the moment of loan issuance, for credit lines – at the moment of processing, and is not subject to refund in case of early repayment	contractual: 0.5% of the loan amount min 20,000 AMD, max 600,000 AMD				contractual: one-time min 50,000 AMD, max 600,000 AMD
	if secured only by cash funds and/or bonds issued by the Bank	not charged				not charged
11	Interest repayment	monthly
		at the time of loan processing
		at the end of loan term, if secured only by cash funds and bonds issued by the Bank
12	Principal loan repayment	Annuity, spring-like, flexible at client's discretion/depending on client's type of activity, with at least 3 months of principal loan repayment in the schedule				Annuity, spring-like, flexible at client's discretion/depending on client's type of activity, with at least 3 months of principal loan repayment in the schedule
13	Reduction of credit line	min within the last 6 months		min starting from the 4th year of the loan		at the client's discretion/depending on the nature of the client's activity, the maximum grace period is 12 months
14	Interest rate for the unused credit line	min 1%
15	Method of issuance	noncash
16	Acting bank account of the Borrower	mandatory
17	Method of use	up to 30 000 000 AMD or equivalent currency noncash/cash (up to 80% at the Bank’s discretion)		30 000 001 - 200 000 000 AMD or equivalent currency noncash/cash (up to 60% at the Bank’s discretion)		above 200 000 001 AMD or equivalent currency noncash/cash (up to 40% at the Bank’s discretion)
18	Cash withdrawal	according to acting tariffs
19	Requirements to the borrower, pledger, guarantor
	Borrower	Organizations operating in the RA territory and acting as SMEs under the RA legislation, and individuals engaged in agriculture (over 18 years of age)
	Minimum activity term	3 months
	Requirements to the borrower's credit history (for legal entities: owners of above 50% assets, final beneficiaries), including affiliated persons/organizations	absence of loans classified in the last one year at a higher class than controlled
	Requirements to capital and profit	the total capital and profit of the client for the last reporting year cannot be negative at the same time
	Guarantor/Pledger	RA resident and non-resident legal entities, individual entrepreneurs and individuals over 18 years of age
	Requirements to the guarantor(s)'s credit history	absence of loans classified as doubtful or higher class
20	Credit line collateral
21	Penalties and fines
	Interest rate for non-performance of the borrower's obligations	24% per annum for the overdue loan
	Penalty for overdue interest	48% per annum
22	Insurance	at the Bank’s request
23	Opening of bank account	according to the Bank tariffs
24	Requirements to the refinanced loan	In some cases, refinancing is carried out under the surety of the borrower, the pledger/s, as well as the co-owners of the collateral subject to further processing (up to 45 days)

Documents

Tariffs and Terms for Issuing Copies of Contracts Concluded with the SME Legal Entities and Individual Entrepreneurs

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 CJSC 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.

Information about Score and Credit History