1.        

Requirements to the leased item

• Under the program, the SMEs can get:
• New energy-efficient production equipment
• New energy-efficient medical equipment
• Electric cars
• Small trucks and other commercial vehicles
• Trucks and construction machinery
• HVAC systems
• Refrigerators, freezers and fridge cameras

The leased item can be acquired in Armenia and abroad both in the primary and secondary markets.

2.        

Eligible lessees

Legal entities or individual entrepreneurs

3.        

Down payment

Minimum 15% of the leased item cost

Down payment to value of leased item: 15/100%

4.        

Currency of finance

AMD

5.        

Minimum and maximum limits of finance

Minimum limit: over AMD 5 million or foreign currency equivalent

Maximum AMD 500 million

6.        

Nominal annual interest rate**

9%-11.8%

7.        

Annual percentage rate (APR)

9.81%-12.9%

8.        

Accrual of interest

Interest accrues on outstanding amount of finance

9.        

Fee for provision of finance

0.5-1 % of the amount of finance lump sum

10.    

Lease term**

From 12 months to 5 years

11.    

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

12.    

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

13.    

Repayments

Monthly

14.    

Security

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

15.    

Insurance

• Mandatory insurance throughout the entire term of leasing; to be obtained by the Lessee for the full value of leased item during the first year and for at least the outstanding principal amount of finance for each subsequent year
• Insurance is obtained by the Lessee.