1.       

Requirements to the leased item

Leased item should be

• acquired in Armenia or abroad
• acquired in the primary market, from specialized vendors (in case of tow trucks, the age should be not more than 5 years from the year of manufacturing; in case of trailers, it should be not more than 7 years)

2.       

Eligible lessees

Legal entities or individual entrepreneurs

3.       

Down payment

50% of the leased item cost

Advance payment to principal: 50/50%

For Toyota, Lexus and Mercedes cars: 40% of the cost of the leased item

For Toyota, Lexus and Mercedes cars: ratio of advance payment to principal equal to 40/60%

4.       

Minimum and maximum limits of finance

Minimum limit: over AMD 5 million or foreign currency equivalent

Maximum AMD 50 million or its equivalent in other currency

5.       

Nominal interest rate**

Annual percentage rate**

AMD: 12%-16%

USD: 8%-10%

EUR: 6%-9%

AMD: 13.12-22%

USD: 8.73%-15.07%

EUR: 6.59-13.95%

6.       

Accrual of interest

Interest accrues on outstanding amount of finance

7.       

Fee for provision of finance

0.5-1 % of the amount of finance lump sum

8.       

Lease term**

From 12 months to 5 years

9.       

Repayment of principal amount before due date

Lump-sum fee of 3% if the principal is repaid before due date during the first 12 (twelve) months after provision of finance

10.   

Non-payment or improper payment of principal and interest***

Fine in the amount of 0.13% of overdue principal and/or interest for each day beyond terms

11.   

Repayments

Monthly, in accordance with the repayment schedule

12.   

Security

• Guaranty provided by the Lessee’s director/founder/other person
• Pledge of property/right upon request

13.   

Insurance

Mandatory insurance to be obtained by the Lessee for the full value of leased item during the first year and for outstanding principal amount of finance in each subsequent year