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Loans within GAF – MSME project

Loans within GAF – MSME project

Loans to SME entities and physical persons engaged in agriculture, the criteria of which complies with the requirements stipulated by the RA Law “On State Support of Small and Medium Entrepreneurship”

You are offered business loans on beneficial terms, which will enable you to assure stable growth and development of your business.           

  • Interest rate
    11.5% - 13.7%
  • Maturity
    up to 60 months
  • Minimum amount
    3 000 000 AMD 
  • Maximum amount
    100 000 000 AMD          
The page was updated 27.11.2017 11:53
The following documents should be presented to the Bank for loan financed under GAF – MSME project

  • Copies of the State registration certificate (with inserts) and the Taxpayer Identification Number (TIN) of the Borrower, charter (as further amended)  of the Borrower, approved by the company,    

  • Copy of document confirming the right of ownership or lease with regard to the place of business,

  • Copies of passports of the participants and the director of the legal entity (copies of state registration certificate, charter and TIN for participants legal entities,

  • Reports for the last year presented to the state tax authorities,

  • Copies of documents proving title with regard to property offered as a collateral,

  • Copies of licenses, certificates and other documents necessary for business,

  • Internal and published financial reports in the form/format acceptable by the Bank, so that the Bank can have clear picture of the Company’s balance sheet, Income and expenses and financial flows for the inspected period

The page was updated 27.11.2017 12:49

Loans extended under GAF – MSME project

Loans to SME entities and physical persons engaged in agriculture, the criteria of which complies with the requirements stipulated by the RA Law “On State Support of Small and Medium Entrepreneurship”

Purpose of the loan

Loans extended to RA resident legal entities, private entrepreneurs and physical persons dealing with agriculture, for purchase of working assets and fixed assets


SME entities and physical persons engaged in agriculture, the criteria of which complies with the requirements stipulated by the RA Law “On State Support of Small and Medium Entrepreneurship”


Armenian dram

Minimum maturity of the loan

Not limited

Maximum maturity of the loan

60 months

Minimum amount of the loan

AMD 3 000 000

Maximum amount of the loan

AMD 100 000 000

Annual interest rate


Loan application processing fee

Not applicable

Upfront fee

1% of the loan amount

Repayment of principal and interest amounts

1. on annuity basis, by making equal monthly payments of principal and interest amounts,

2. reducing – equal repayment of principal amount and monthly repayment on interests

3. mixed – principal mount on the basis of dynamic of cash flows of the client and interest on monthly basis.

Minimum term of business (uninterrupted)

6 months

Opening /maintaining bank account

According to the applicable rates


According to the rates applicable at the Bank (cashing of the loan amount or a part thereof can be limited by the decision of competent authority of the Bank (cashing here means transfer of facilities from the Borrower’s account to other account opened with the Bank or other banks))

Eligible age of the borrower/guarantor

Eligible age of private entrepreneurs, physical persons should not exceed 70 at the time of maturity.

Requirements to the credit history of the Borrower (including participants held 10% and more in its charter capital) /guarantors

1. No overdue /classified obligations as of the date of loan application,

2. Good or neutral credit history acceptable by the Bank, according to the internal legal acts of the Bank.

3. Credit history requirements for other participants and parties closely related with the borrowers can be presented by the decision of the competent authorities of the Bank

Acceptable security/collateral 

  • Real property,
  • Fixed assets (equipment, techniques, other property),
  • Vehicles,
  • working assets,
  • receivables rights,
  • cash flows,
  • guarantees, warranties
  • cash,
  • precious metals (items) **
  • Shares,
  • Securities,
  • right of collateral
  • other property or property right allowed by the RA legislation

Loan to collateral ratio

According to the internal legal acts applicable by the Bank 

Insurance of collateral

The subject of collateral should be insured from the appraised market value if the subject of collateral is vehicle. The competent authority of the Bank, which takes the decision on the loan can require insurance for the subject of collateral for all other types of collateral.

* Gold items are appraised according to the rates applicable at the Bank.

Fine, penalty

For overdue principal amount -  0.1% daily

For overdue interest amount - 0.1% daily

Early repayment fee  - in the amount of 3% of such early repaid amount.

Where to apply

Branches of the Bank, Head office

Maximum term of taking decision

15 business days after presenting complete file of documents required by the Bank

Term of giving notice to the client on taken decision

1 business day

Validity term of the decision

30 business days

Term of re-approval

Maximum once, within 10 business days after expiration of the validity term of the decision, under the terms of financing, applicable as of the day of re-approval

Term of extending the loan

According to the internal legal acts of the Bank

How to calculate interests 

Interest amount is applied to the reduced balance with the account of 365 days a year.


Exchange rate effect 

Taking into account the fact that the Bank provides loans in both Armenian drams and foreign currency, the borrower should understand that foreign currency fluctuations can have either positive or negative impact on the loan repayment

Loan request rejection 

Upon request of the client the Bank can provide information on rejecting the loan in written form.


If the funds received as a result of disposal of pledged property are not enough to cover the borrower's liabilities under the loan, such liabilities shall be paid on the account of other equivalent assets of the borrower.

The page was updated 24.01.2018 09:26
Attention: The Bank does not bear any responsibility for the inaccuracy of information on the linked web sites, nor does it accept any responsibility for the advertisements therein or possible consequences arising out of use of information provided on the linked web-sites. In case of any discrepancies in the website materials in Armenian, Russian and English languages, the Armenian version is prevailing.