Standard Leasing

Main

Standard Leasing is a classic finance lease option offered to legal entities and private entrepreneurs, without any subsidy program or refinancing fund. Benefits of Standard Leasing:

Collateral-free
Lower down payment than in case of a loan
No VAT if the lessee is VAT-exempt at the crossing of the border of Armenia*

With Standard Leasing, you can acquire any leased item permitted by the law and acceptable to the Bank.

*in cases specified by the law

Amount

minimum AMD 5 million (no upper limit applies)

Term

up to 5 years

Down payment

minimum 15% of the cost of the leased item

Terms and Conditions

Terms of finance lease PDF

1.	Requirements to the leased item	The leased item can be acquired in Armenia and abroad both from primary and secondary markets.
2.	Eligible lessees	Legal entities or individual entrepreneurs running a business for at least the most recent 6 months
3.	Down payment	Minimum 15% of the leased item cost
4.	Down payment to Principal:	15/85%
5.	Minimum and maximum limits of finance	Minimum limit: over AMD 5 million or foreign currency equivalent Maximum limit: N/A
6.	Fee for provision of finance	0.5-1 % of the amount of finance
7.	Security	Guaranty provided by the Lessee’s director/founder/other person Pledge of property/right upon request
8.	Lease tenure for movable property	From 12 months to 5 years
9.	Lease tenure for real estate²	1-10 years
10.	Repayment of principal amount before due date[i]	Lump-sum fee of 3% if the principal is repaid before due date during the first 12 (twelve) months after provision of finance
11.	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
12.	Grace period	Negotiable
13.	Annual nominal interest rate⁴ Annual percentage rate⁴	AMD: 12%-16% USD: 8%-10% EUR: 6%-9% AMD: 13.01%-21.97% USD: 8.62%-15.07% EUR: 6.48%-13.95%
14.	Insurance	Required during entire lease term. To be obtained by the lessee for the full value of leased item during the first year and for at least outstanding principal amount of finance for each subsequent year Insurance is obtained by the Lessee.

1 These terms do not apply to finance lease issued under the RA Law “On Consumer Crediting”.

2 If finance is provided for acquisition of real estate and if the property is purchased from a company cooperating with the Bank, the Bank finances up to 85% of the purchase value of the property; in other cases the Bank finances up to 85% of either the liquid value of the property appraised by an appraiser cooperating with the Bank or the purchase price of the property, whichever is smaller.

3 Whenever applied, the maximum annual rate and/or aggregate amount of fines and/or penalties under the Agreement shall be within the limits defined under the laws and regulations of the Republic of Armenia.

4 The rate and term of lease depend on the level of risk associated with the contract, type of property to be purchased and specifics of business. Lease rate depends also on term of lease.