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3. Retail business loan/overdraft partially secured by assets
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Loan type
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Retail business loan/overdraft partially secured by assets
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Purpose 1
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Business expansion; financing of current operations and other investments; transfer of outstanding business loans with other banks and credit organizations to Ameriabank CJSC
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Customers
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Legal entities and individual entrepreneurs with at least 6-month business history
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Sectoral restrictions
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According to the Exclusion List
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Creditworthiness assessment
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According to the approved criteria
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Loan terms
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Currency
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AMD
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USD
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EUR
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Minimum and maximum lending limit2
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AMD 15 million - 30 million or its equivalent in other currency
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Term (months)
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12 months
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Annual interest rate (fixed) on loans
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13.0%
(APR: 16.3%-16.8%)
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10.0%
(APR: 12.9%-13.4%)
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8.0%
(APR: 11.3%-11.7%)
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Annual interest rate (fixed) on overdrafts
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14.0%
(APR: 16.3% 16.5%)
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11.0%
(APR: 12.9%-13.1%)
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9.0%
(APR: 11.2%-11.4%)
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Term (months)
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36 months
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Annual interest rate (fixed) on loans
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13.5%
(APR: 15.8%-15.9%)
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10.5%
(APR: 12.4%-12.5%)
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8.5%
(APR: 9.7%-9.9%)
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Annual interest rate (fixed) on overdrafts
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14.5%
(APR: 16.5%-16.6%)
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11.5%
(APR: 13.1%-13.2%)
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9.5%
(APR: 10.4%-10.5%)
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Term (months)
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60 months
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Annual interest rate (fixed) on loans
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14.0%
(APR: 15.6%-15.7%)
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11.0%
(APR: 12.2%-12.3%)
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9.5%
(APR: 10.5%-10.6%)
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Annual interest rate (fixed) on overdrafts
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15.0%
(APR: 16.5%-17.8%)
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12.0%
(APR: 13.0%-13.1%)
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10.5%
(APR: 11.4%-12.7%)
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Standard annual interest rate under GAF SME support program
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Term (months)
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12 months
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Annual interest rate (fixed) on loans
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11.5%
(APR: 14.8-15.2%)
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N/a
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N/a
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Term (months)
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36 months
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Annual interest rate (fixed) on loans
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12.0%
(APR: 13.6-13.8%)
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N/a
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N/a
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Term (months)
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60 months
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Annual interest rate (fixed) on loans
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12.5%
(APR: 13.8-13.9%)
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N/a
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N/a
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Annual interest rate on non-utilized overdraft amounts
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2%
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Other terms related to the interest rate
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If the loan is secured by cash or bonds issued by Ameriabank, the interest rate is equal to:
- Applicable interest rate for cash/bond + 4%, but in any case not more than the rates specified above, if the loan and the collateral are in the same currency
- Rates specified above, if the loan and the collateral are in different currencies
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Where insurance of the collateral is obtained by the bank at the wish of the client, the rate of interest is increased pro rata the share of each type of the collateral in the total value of the collateral by:
• 2.5% if the collateral is a vehicle, or
• 0.5% if the collateral is plant and equipment.
Where the insurance of real estate is obtained by the client, the interest rate will be reduced by 0.05%, based on the share of each type of assets in the total collateral.
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Loan disbursement fee
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1% of the loan amount
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Loan cashing
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For loans: not applicable in case of AMD withdrawals from the borrower's account
0.5 % of the amount withdrawn in case of foreign currency withdrawals
For overdrafts: as per the cash withdrawal fees specified in Ameriabank CJSC Tariffs for Corporate Clients4 (12CIB/11RBD PL 72-01-02)
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Repayment
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SME loans: annuity (equal loan installments consisting of a portion of loan and a portion of interest; payable on monthly basis)
SME overdraft: repayment of principal at maturity
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Security
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Eligible collateral
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The loan may be secured by real estate or vehicles satisfactory to the Bank.
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LTV ratio (based on the liquidation value)
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The value of the loan security is included in the estimation of the LTV ratio in an amount not more than:
1. Real estate in Yerevan: up to 100%, real estate in the regions of Armenia: up to 90%
2. 50% if the loan is secured by vehicles
While calculating the LTV ratio, the loan value is considered to be equal to the sum of (i) that portion of the requested loan that is above AMD 15 million, and (ii) outstanding unsecured credit obligations of the client. Furthermore, if the client’s outstanding unsecured credit obligations are above AMD 15 million, the LTV ratio is calculated only in relation to the requested amount, in full.
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Age of vehicles to be pledged
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Max 12 years for foreign brand vehicles other than vehicles made in Russia, China and Iran, in which case max age is 8 years
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Location of real estate to be pledged
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Armenia
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Property appraisal
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Pledged assets to be appraised by an appraising partner of the bank.
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Additional security
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1. Pledge of cash flows through the account
2. Individual guarantees by founders and beneficial owners of businesses are a required condition. The Bank may request guarantees by other individuals and/or companies as additional security.
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Insurance of property
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The insurance of the pledged real estate is to be obtained only if it is or will be used for business purposes, and the market value of the property is above AMD 100 million or the real estate being pledged is an apartment in Yerevan.
The insurance of real estate, vehicles and plant and equipment is maintained throughout the loan term:
1. If obtained by the client: at least for the amount of the outstanding principal/credit limit
2. If obtained by the Bank: to the extent of the outstanding principal/credit limit.
The following vehicles are not subject to insurance:
• Vehicles transporting hazardous materials (toxic substances, chemicals, radioactive and explosive materials)
• Vehicles to be used in races, test drives; vehicles which have three wheels, snow removers, motorcycles, special purpose vehicles
• Taxis and rental cars
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Loan service fees 3
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Modification of the loan terms
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AMD 25,000
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Substitution of pledged property (for real estate; including change of the property owner)
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AMD 20,000
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Substitution of pledged property (for vehicles; including change of the owner of the pledged vehicles)
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AMD 10,000
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Provision of pledge-related consents, permissions and references
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AMD 10,000 (VAT included)
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Change of the loan repayment date
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AMD 10,000
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Other fees payable by the client
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1. Fee for the unified statement from the State Committee of the Real Estate Cadaster adjunct to the RA Government; fee for police reference on vehicles encumbrance
2. Notary fee for registration of pledged real estate; fee for state registration of the bank’s security interest under the real estate pledge agreement; Fee for the certificate of registration of the security interest in the vehicle
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Early repayment
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5% of prepaid amount, chargeable if early repayment of the loan, whether in whole or in part, is made during the first 3 years of the loan term. However, it is not applicable if the lump-sum or total amount of the prepaid loan is up to 20% of the contractual amount.
- In case of early repayment of the loan, whether in whole or in part, the fee will not be charged if such loan is prepaid out of the loan proceeds provided by Ameriabank CJSC to the borrower for that particular purpose.
- In case of loans in the amount of up to AMD 5 million or its equivalent in foreign currency, any early repayment fines, fees, increase of rates or any other means affecting the borrower’s condition are not applied.
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In case of an overdraft, the specified regulations shall not apply.
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Late payment fines and penalties
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The interest rate specified in the loan agreement will continue to be applied to overdue loans.
Fine in the amount of 0.13 % of overdue loan/interest for each day of delay
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1 Unless otherwise specified in the loan agreement, the loan proceeds should be used for their intended purpose during no more than 3 months.
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2 On a case-by-case basis, loans may be issued in the amount below the specified minimum limit for such a term specified in these terms where the application of the respective interest rate will not result in the breach of the maximum annual percentage rate stipulated by law.
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3 The fee is charged if the modification is requested by the client. Where there are several applicable fees for the same modification, the highest fee is charged and only once. Fees are not applicable in case of loans secured by cash, bonds and metal accounts. If the modification implies adding new collateral or involving a new guarantor, no fee is charged. These fees do not apply to the loans to agro-processing industry.
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4 Ameriabank CJSC Tariffs for Corporate Clients (12CIB/11RBD PL 72-01-02, approved by Management Board Resolution # 03/11/15 dated May 20, 2015). Available at https://ameriabank.am/useful-links
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