Chat with us, powered by IDBank
Micro business loans

Micro business loans

Loans for purchase of fixed and working assets

         You are offered business loans on beneficial terms, which will enable you to assure stable growth and development of your business. Loans are extended in Armenian dram and foreign currency.


  • Interest rate
    from 11.9%
  • Maturity
    up to 60 months
  • Minimum amount
    3 000 000 AMD
    or
    6 000 USD
  • Maximum amount
    25 000 000 ATM
    or
    50 000 USD

The page was updated 27.11.2017 14:13

  Micro business loans

Loans for purchase of fixed and working assets

Purpose of the loan

Loan/credit line extended for purchase of working assets

Loan/credit line extended for purchase of fixed assets

Currency

Armenian dram

US dollar

Armenian dram

US dollar

Minimum amount*

3 000 000

6 000

3 000 000

6 000

Maximum amount** 25 000 000 50 000 25 000 000    50 000
Maximum maturity    36 months    60 months

Loan interest rate

loan

From 13.9%

From 11.9%

From 13.9%

From 11.9%

Credit line

From 14.9%

From 12.9%

From 14.9%

From 12.9%

Annual interest rate calculated on unused part of the credit line

1%

Loan application processing fee

Not applicable

Upfront fee

1% of the principal amount, but no less than AMD 50 000

Monthly loan service fee

0.1%  of the balance, minimum AMD 1 500

Grace period

Based on the nature of the business the grace period may be granted during the term of the loan, provided however that it cannot exceed 12 months in aggregate

Based on the nature of the business the grace period may be granted during the term of the loan, provided however that it cannot exceed 36 months in aggregate

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

Cashing

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 
  • 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.

* The clients may be extended less than the minimum amount, but no less than AMD 1 million or equal foreign currency if the aggregate balance of total liabilities of the client/borrower (including the new loan) exceeds the minimum amount of the loan. While defining the minimum amount of the loan the Bank shall be guided by dram equivalent applicable in the Bank as of the date of submitting application, if the client has been extended loans in different currencies. Other terms of financing are defined according to these terms.

** Maximum amount includes aggregate of balances of total liabilities of the client/borrower to the Bank (including the new loan). The competent authority of the Bank can take decision on extending facilities to the client exceeding the defined maximum amount.

*** 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.

ATTENTION: THE INTEREST ACCRUED TO THE CREDIT AMOUNT IS CALCULATED ON THE BASIS OF NOMINAL INTEREST RATE.   

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.

ATTENTION: IN CASE OF FAILURE TO REPAY THE LOAN INTEREST AND/OR PRINCIPAL WHEN DUE YOUR ASSETS CAN BE SEIZED. THE INFORMATION ABOUT YOUR OVERDUE LIABILITIES SHALL BE RECORDED IN THE CREDIT REGISTER. 

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 09:24
Required documents are given in the list at the below link:



The page was updated 27.11.2017 14:33
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.