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Provision of loans to corporate clients in the scopes of ID-EIB-III program

Loans for agriculture, agricultural processing, export promotion, industry implementation, tourism development



                      


  • Interest rate
    8% - 9.5%
  • Terms
    up to 90 months
  • Minimum amount
    5 000 001 AMD
  • Maximum amount
    500 000 000 AMD            
 
The page was updated 01.07.2021 17:57

Provision of loans to corporate clients in the scopes of ID-EIB-III program 

Loans for agriculture, agricultural processing, export promotion, industry implementation, tourism development

Information bulletin of provision of loans to corporate clients in the scopes of ID-EIB-III program 

Loan purpose acquisition/replenishment of tangible and/or intangible fixed assets, working capital for the purpose of agriculture, processing of agricultural products, tourism, export promotion, industry 
Client RA resident micro, small/medium and large enterprises (including Private Entrepreneurs) engaged in the spheres of agriculture, processing of agricultural products, tourism, export promotion and industry 
Currency AMD
Minimum loan term 24 months
Maximum loan term 90 months but not more than the technical and economic deadline of the funded project
Minimum loan amount AMD 5.000.001
Maximum loan amount* AMD 500.000.000
Annual nominal interest rate  8-9.5%
Loan application revision fee not defined
Loan disbursement commission 0-1% of loan amount
Maximum loan repayment grace period  30 months
Loan and interest repayment 1. annuity - equal monthly repayments of the principal amount and the interest amount of the loan,
2. decreasing - equal repayments of the principal amount of the loan, monthly repayments of interest amounts,
3. mixed - repayments of the principal amount of the loan depending on the dynamics of the client's financial flows, repayments of interest amounts on a monthly basis.
Minimum term for business activity (continuous) 6 months
Bank account opening/servicing  According to the tariffs applied in the Bank which are presented at the following link: Information bulletin of tariffs.
Cash withdrawal of loan amount according to tariffs applied in the Bank
(the usage of the loan amount or part of it in cash can be limited by the decision of the Bank's competent body (usage of cash can also refer to transfers from the client's account held with the Bank to its other account held with the Bank or other banks)) 
Age restrictions towards borrower/guarantor  the age of entities with PE status or physical entities must not exceed 70 years by the maturity term of the loan repayment
Requirements to the credit history of the borrower (including its participants with 10% and more share in the charter capital)/guarantor   1. Absence of overdue loan labilities to the banking system as of the day of submission of the loan application (in terms of loans, credit lines, overdrafts, etc.),
2.  Not more than a total of 30 days of delay in terms of principal amount and/or interest amount repayments of previously received loans (credit lines, overdrafts, etc.) within 12 months prior to the day of submission of the loan application,
3. According to the decision of the Bank's competent body requirements can be set towards credit histories of other participants, as well as parties closely related to the borrower.
Acceptable means of security/pledge • real estate property,
• fixed assets /equipment, machinery, other property/,
• means of transportation,
• goods in circulation,
• right to accounts receivable,
• financial flows,
• guarantees, warranties,
• financial means,
• precious metals (items)**,
• shares,
• securities,
• pledge of right,
• other property or property right not forbidden by RA legislation
Maximum loan/pledge ratio 50-100% depending on the type of pledge and the decision of the Bank's competent body. The calculation of the loan/pledge ratio is based on the appraised liquid value of the property.
Insurance of subject of pledge Insurance of the subject of pledge may be required according to the decision of the competent body on providing the loan 
Fines, penalties 0.1% daily penalty for overdue loan amount 
0.1% daily penalty for overdue interest amount 
penalty in the amount of 5% of the early repaid amount in case of early loan repayment 
Place of acceptance of the application Branches, Head Office of the Bank 
Conclusion of chief credit agreement  A chief credit agreement can be concluded with the client upon the latter's request for a term of up to 240 months 
Positive factors of provision 1) good credit history,
2) stable cash flows,
3) compliance of the subject of pledge with the Bank's requirements,
4) good reputation
5) other factors
Rejection factors 1) bad credit history,
2) insufficient financial state,
3) incompliance of the subject of pledge with the Bank's requirements,
4) submission of false or unreliable information,
5) submission of such information that doubts the repayment of the loan,
6) other factors 
Maximum decision-making term Up to 25 business days after submission of the complete package of documents required by the Bank
Term of informing the client about the decision *** 1 business day
Decision validity term **** 30 business days
Decision reapproval term **** Maximum once within 10 business days after the expiration of the validity term of the decision under the conditions applied as of the reapproval day 
Loan disbursement term Maximum 3 business days after submission of the complete package of documents and registration of the right of pledge after the decision on provision of the loan has been made 
* Loans exceeding the mentioned amount can be extended according to the decision of the Bank's competent body.
** Evaluation of gold items is carried out according to the tariffs applied in the Bank. 
*** The Bank can inform the client about the decision on extending the loan at the premises of the Bank, by a phone call or e-mail. 
****The Bank is entitled to refuse to provide the loan in case if the essential conditions for passing a positive decision on extending the loan have been changed (e.g. changes of the pledge value, overdue liabilities, seizure of bank accounts etc.)
List of property appraisal companies
List of insurance companies

GENERAL PROVISIONS

1. The real estate mortgage agreement must be notarized. The right of ownership towards property, the mortgage right and other property rights are subject to state registration.
2. The loan interest amounts are calculated based on the nominal interest rate. The loan interest amount is calculated towards actual loan balance. 
3. The interest amounts calculated towards the principal amount of the loan extended in a foreign currency can also be paid in the loan currency upon the borrower's request. 
4. In case of loans extended in a foreign currency the changes of the foreign currency exchange rate can affect the repayment of the loan. 
5. In case of failure to make interest amount and principal amount payments on time the pledged property and/or funds can be confiscated in the order defined by law, and the Bank shall send the information about the client to the credit bureau not later that within three business days where the client’s credit history is generated. The client has the right to receive his/her credit history from the credit bureau free of charge once a year. 
6. A poor credit history can prevent the client from receiving loans in the future.
The borrower can be deprived of his/her property rights (apartment or house) if he/she fails to fulfil or improperly fulfills his obligations under the credit agreement.
7. In case if the subject of pledge is insufficient to cover the obligations while repaying liabilities at the expense of the pledge if the borrower fails to fulfil his/her obligations, the liabilities  may be repaid at the expense of the client’s other properties. 
8. Repayment of overdue liabilities is performed in the following order: expenses related to confiscation of funds, including judicial expenses (if applicable), interest amount fines, principal loan amount fines, interest, service fee and commission (if any) and loan amount. The creditor has the right to change the sequence of payments mentioned in this paragraph at any time.
9. Disputes arising between the Bank and micro enterprises according to RA legislation can be resolved in a judicial order or through the Financial System Mediator (in accordance with the RA law “On Financial System Mediator”), located at 15 M. Khorenatsi St, “Elite Plaza” business center, 7th floor, Yerevan 0010, RA, email – info@fsm.am, telephone – (+37460) 70-11-11, fax – (+37410) 58 24 21. Moreover, in case if the amount of the property claim does not exceed 500,000 (five hundred thousand) AMD or equivalent in foreign currency, the decisions of the financial system cannot be challenged by the Bank.
10. For the purpose of proper study of the client as defined by RA law on “Combating money laundering and terrorism financing” the Bank may require additional documents or information based on “Know Your Client” principle. 
11. According to the agreement with the USA based on the Foreign Account Tax Compliance Act (FATCA) the Bank may collect additional information for the purpose of identification of the fact of the client being a US taxpayer. 
12. The client has the right to communicate with the Bank through a preferred means of communication: e-mail of regular post. 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 as well as ensures confidentiality.
13. The conditions on providing statements, their copies and references throughout the term of the loan agreement can be found at the following link: Information bulletin of tariffs.
14. The list of branches and ATMs of the Bank, information on their locations and working hours can be found at the following link:Branches and ATMs.
15․ Remote servicing by the Bank is provided thought the IDBusiness system and/or IDBusiness mobile application the service terms and tariffs of which can be found at the following link "Information bulletin of tariffs".

List of required documents

ATTENTION! THE BANK IS CONTROLLED BY THE RA CENTRAL BANK



The page was updated 24.06.2021 16:58
The following documents are submitted to the bank to receive a loan under ID-EIB-III program

Prior to implementation of financial analyses

1. Copy of the Borrower's charter (with all the changes and amendments approved by the company)
2. Copy of the document confirming the ownership or rental right towards the place of activity
3. Copies of passports of participants, director of the legal entity (copy of the charter in case of legal entity participants)
4. Statements submitted to the state tax service for the past one year
5. Copies of documents confirming the right of ownership towards the property offered as a pledge
6. Copies of licenses, certificates and other documents required for the activity
7. Internal and published comprehensive financial statements on the actual Balance, Incomes and Costs and cash flows of the organization in a format/form acceptable for the Bank for the purpose of receiving an insight for the period being analyzed
8. Documents referring to the equipment being obtained as required (passport, invoice etc.)


Documents required after the approval of the loan application

1. Reference from the state register or other competent authority on the changes of the charter, participants and executive body of the legal entity
2. Reference from the State Tax Service on the debts towards the budget and social fund (upon the Bank's request)
3. Document confirming the ownership right towards the property being pledged (with grounds of ownership)
4. Copies of the passport, social card, marriage certificate (if any), passports of the spouse of the physical entity
5. Copy of the charter of the legal entity pledger, the decision of the company's competent body on pledging the property (as well as a reference from the State Register or other competent body about the participants and executive body of the legal entity)
6.  Reference from a competent body on restrictions in terms of the pledged property
7. General meeting of the Company's competent body, constituent decision about applying to "IDBank" CJSC for a loan and pledging the property
8. Appraisal act of the property to be pledged/pledged prepared by relevant companies acceptable for the Bank
9. Documents referring to the equipment being obtained as required (passport, invoice etc.)

The page was updated 24.06.2021 17:12
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