Business loan terms

A	Loans to corporate clients
A.1.	Loans to large enterprises
A.1.1.	Secured by cash collateral, Short-term treasury bonds, standard gold bars
A.1.2.	Secured by property and equipment, guarantees and warranties, other securities
A.1.3.	Secured by cash flows, finished goods, raw materials or mixed collateral
A.2.	Loans to small and medium enterprises (SMEs)
A.2.1.	Secured by cash collateral, Short-term treasury bonds, standard gold bars
A.2.2.	Secured by property and equipment, guarantees and warranties, other securities
A.2.3.	Secured by cash flows, finished goods, raw materials or mixed collateral
A.5.	Loans to women in business1
A.5.1.	Secured by cash collateral, Short-term treasury bonds, standard gold bars
A.5.2.	Secured by property and equipment, guarantees and warranties, other securities
A.5.3.	Secured by cash flows, finished goods, raw materials or mixed collateral

Loan Amount	Over AMD or other currency equivalent of USD 1,500,000
Loan term	3-8 years
Grace period (for principal)	up to 1 year
Annual interest rate*	For loans in AMD from 12 %
	For loans in USD from 9 %
	For loans in EUR from 8 %
	For short-term loans in USD and EUR (for import or export purposes) from 8%
	Annual interest rate for loans in other currencies is determined by the Management Board
	posit (time or demand) + 4%, if the loan and the deposit are in the same currency % of deposit (time or demand) + 5%, if the loan and the deposit are in different currencies
Loan provision fee **	Loans with less than 1-year term: 0-0.5% of contractual loan amount 1-2 years: 0-0.7% of contractual loan amount More than 2 years: 0-1.5% of contractual loan amount Loans secured against cash collateral: 0%
Late payment fee***	Fine in the amount of 0.13% of overdue loan/interest for each day beyond terms
Loan repayment	As per schedule or at the end of term (monthly, quarterly, semi-annually or otherwise as defined under loan agreement)
Early repayment	Early repayment fee in the amount of up to 6-month interest on repaid sums where envisaged under loan agreement
Loan security	cash, T-bills, standard gold bars, bonds issued by Ameriabank, property and equipment, guarantees and warranties, other securities, cash flows, working assets or mixed collateral, real estate**** personal guarantees by the business founders/beneficial owners as additional security.
Loan-to-value (LTV) ratio*****	Max 100%, if the currency of loan is the same as that of collateral or, if different, it is included in SDR basket, and max 95%, if the currency of loan is different from that of collateral, except for currencies included in SDR basket
Loan-to-value (LTV) ratio*****	a) Up to 80% of appraised value of collateral (in case of real estate) for loans with up to 96-month term; 90% if the debt service coverage ratio of the borrower is 1.5 or higher; up to 70% if the loan term exceeds 96 months b) Up to 50 % of appraised value of collateral in case of movable property; 60% if the debt service coverage ratio of the borrower is 1.5 or higher and the loan term does not exceed 96 months up to 80% for the movable property which is going to be purchased or has been purchased during the last six months, starting from the loan application submission date, where the loan term does not exceed 96 months c) Up to 30 % of appraised value of collateral in case of inventories (finished goods, raw materials, etc.). Note that the share of this kind of collateral cannot exceed 40% of total pledge. d) max 50% of average monthly bank account turnover for the most recent period from 6 (min) to 12 (max) months, for cash flows e) for shares: - up to 80% of appraised value of collateral in case of running business - up to 60% of appraised value of collateral in case of business not yet running (project-based loansiv
Pledge insurance	To the extent of outstanding loan, on annual basis - The insurance of the pledged real estate is to be obtained only if it is or will be used for business purposes.
Application handling period	5-15 business days upon receipt of complete set of documents
Application handling period	Depending on the case, these terms may be extended for an additional period of not more than 10 business days.
Validity period (period during which loan approval is effective)	30 days, unless otherwise specified by the decision of the bank’s authorized body
Loan re-approval	Upon expiry of approval validity period, but not later than 60 days after the initial approval date
Form of disbursement	Wire transfer to bank account
Loan modification application fee******	AMD 500 000

[*] Maximum annual interest rate cannot exceed 24%. The overdue loans continue to bear the interest rate specified in the loan agreement.

[**] Whenever applied, the maximum annual rate or aggregate amount of fines and/or penalties under the agreement will be within the limits defined under the legislation of the Republic of Armenia.

[***] Where the guarantee is the main security and there are pledged items as well, loan-to-value ratio is not applicable. This being the case, the nature of security (main or additional) is defined in loan conclusion and approved by the authorized body.

[****] Where the project loans are concerned, if the project owner/contractor has implemented similar projects earlier, the LTV ratio is up to 80 percent of the appraised value of the collateral.

[*****] Loan modification fee is payable by the client in case the application for revision of the terms was submitted by the client at their initiative and approved by the bank. The fee is paid based on analysis and conclusion prepared by relevant department of the bank for the client’s application. Generally, in other cases of modification of the loan terms, charging of the fee is subject to decision of the bank’s authorized body.

Terms

Previous Terms (effective from 06.07.2021 to 17.07.2022)

Information guide to SME Loans Provided to Corporate Clients

List of Documents and Information to be Submitted by Potential Borrowers

List of insurance companies cooperating with Ameriabank

List of appraisers cooperating with Ameriabank

Loan rates can be variable/floating, in which case supplementary agreements on variable component are executed:

Loans are issued in non-cash form in AMD or other currency, either lump sum or by tranches.

The following items may be considered as security:

cash, T-bills, standardized bullions of gold
fixed assets (immovable, movable), guarantees and warranties
cash flows, working assets or mixed collateral

Collateral Appraisal

Fixed assets should be appraised by an independent company cooperating with the bank, subject to the company’s tariffs. Appraisal costs will be borne by the borrower. Appraisal costs vary within AMD 13,000-30,000 depending on the property type. Appraisal fee for the large property will be quoted on a case-by-case basis (negotiable).

Collateral Registration

All collateral registration costs (notarization, registration at the relevant branch of State Committee of the Real Estate Cadaster) will be borne by the borrower.
Legal (notary) fee: AMD 14,000-16,000 (lump sum), if the loan is secured by a vehicle
Legal (notary) fee: AMD 13,000-20,000 (lump sum), if the loan is secured by real estate
Fee for statement from the cadaster on the real estate encumbrance: AMD 10,000
Security interest filing fee (for real estate): AMD 26,000
Armenian Police fee (lien and security interest in movable property): AMD 5,000 (lump sum).

Collateral insurance

To the extent of the principal/outstanding loan, on annual basis. The collateral shall be insured by independent insurance companies cooperating with the bank. The following items are subject to insurance: real estate, except for land, movable property, inventories, such as finished goods, raw materials, etc. (upon request). Insurance costs shall be defrayed by the borrower.

When applying for a loan, make an informed decision

Last updated on 29.11.2019, 10:11