Overdraft on Business Card | Business Loans | Ameriabank
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Overdraft on Business Card

For businesses with up to AMD 750M annual turnover

Overdraft on business card based on the volume of your POS transactions, or account turnover.

If you use Ameriabank's POS terminal services, or just have an account with Ameriabank, this service is for you. You can get an overdraft in the amount of AMD 3-20 million or equivalent in other currency on your business card based on the volume of your POS transactions or account turnover.

  • Apply online
  • No early repayment fee
  • Upload files and track your application online
  • If you meet the Bank's criteria, our specialist will get in touch with you within 1 business day after you apply.

Types of overdrafts on business card

  • Overdraft based on the volume of your POS operations 

AMD 3-20 million or other currency equivalent

  • Overdraft on business card

AMD 1-20 million or other currency equivalent

Term

12 - 60 months

Loan amount

Up to AMD 20 million or other currency equivalent

Ready to apply for a loan?



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FAQ

Can I apply for a loan without visiting the Bank?

Yes, you can use the Bank's website to apply online for any business loan. Our specialists will get in touch with you. You can also use the online platform to track your application.

Can I get loan approval online without visiting the Bank?

Yes, you can get your approval online if your loan is within AMD 10 million. If you have an account with Ameriabank and a valid ID card, you can also get the money online without having to visit the Bank in person.

Where can I learn about interest rates?

Information about interest rates is available on Ameriabank's official website: go to menu and select the item you are interested in from “Loans”. For more information feel free to call us at +37410 56 11 11 or visit the nearest branch office. Find our locations and learn about work hours here.

Can I get a loan, if I already have an outstanding business loan in another bank?

To provide a loan, the Bank performs creditworthiness analysis. Loans in other banks are not a deal-breaker, if your general creditworthiness ratios meet our criteria. You can also consolidate your loans in other banks by transferring them to Ameriabank. If your loans are within AMD 20 million, you can have them refinanced by Ameriabank automatically, without having to visit other banks for formalities.

What documents do I need to apply for a loan?

To apply for a loan online, you need to provide certain basic data about your business (TIN, ID). Depending on the type of loan you choose, other documents or information might be required at further stages, which you can upload on our webpage without having to visit the Bank in person.

Can I transfer loans from other banks to Ameriabank?

Yes, you can consolidate your loans in other banks by transferring them to Ameriabank. Loans within AMD 20 million can be transferred to and refinanced by Ameriabank automatically, no need to visit other banks for formalities.

Are there any restrictions as to which industry you have to work in in order to get a loan?

Yes, Ameriabank does not finance the following industries:

  • Production or trade in any product or activity deemed illegal under the Republic of Armenia laws or regulations or international conventions and agreements
  • Production or trade in weapons and munitions
  • Gambling, casinos and equivalent enterprises
  • Trade in precious stones
  • Currency exchange business
  • Brokerage or bookmaking offices
  • Production, use of or trade in hazardous substances (like radioactive materials) other than pesticides and fertilizers used in agriculture

How to apply

POS/account turnover-based overdrafts on business cards (Visa Business/MasterCard Business)

 

Loan type

Overdraft on business card based on the volume of POS transactions or account turnover

 

Purpose

Business expansion; financing of current operations and other investments; transfer of outstanding business loans with other banks and credit organizations to Ameriabank CJSC    

 

Clients

Legal entities and individual entrepreneurs with at least 6-month business history

 

Sectoral restrictions

According to the Exclusion List

 

Creditworthiness assessment 1

According to the approved criteria

 

Currency

AMD

USD

EUR

Loan terms

Minimum and maximum lending limit

• Up to 40% of average monthly cash flows through accounts with Ameriabank during the most recent 612 months, within AMD 1,000,000-20,000,000 or its equivalent in foreign currency
• The credit limit for the client with at least 3-month cash flow history with Ameriabank shall be based on the cash flows through the client's accounts with Ameriabank for 3 months and the net turnover with the other banks for at least 39 preceding months, within AMD 1,000,000-20,000,000, provided that the client transfers his/her accounts turnover with other banks to Ameriabank.

If credit line is issued to clients having POS-terminals:

• Difference between 5x of the average monthly POS turnover via the existing POS accounts with Ameriabank for the most recent 6 months or most recent 12 months, whichever is lower, and the amount of collateral-free loans at Ameriabank, within AMD 3,000,000-20,000,000 or its equivalent in foreign currency
• The same approach is applied to the net POS turnover through accounts with other banks provided that such POS turnover is transferred to Ameriabank.

Term (months)

12 months

Annual interest rate (fixed)

15.5%
(APR: 17.9%)

12.5%
(APR: 14.5%)

11%
(APR: 12.8%)

Term (months)

36 months

Annual interest rate (fixed)

16.5%
(APR: 18.3%)

13.5%
(APR: 14.8%)

12%
(APR: 13.1%)

Term (months)

60 months

Annual interest rate (fixed)

17.5%
(APR: 19.3%)

14.5%
(APR: 15.8%)

13%
(APR: 14.1%)

Annual interest rate (fixed) if the credit line is issued to clients having POS-terminals

15%
(APR: 16.1-18.6%)

12%
(APR: 12.7-15.1%)

10.5%
(APR: 11-13.4%)

Other terms related to the interest rate

If the line of credit/overdraft is secured by cash or bonds issued by Ameriabank, the interest rate is:
- 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

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.

If the LTV ratio differs from the ratio specified herein, the interest rate is increased by 0.25%.

If the creditworthiness ratios differ from the ratios approved by the internal regulations of the Bank (DSCR), the applicable interest rate is increased by 0.25%.

In case of other deviations, the applicable interest rate may be increased by 0.25%.

Loan disbursement fee

1% of the loan amount
• Not applicable in case of overdrafts issued via business cards on the basis of POS turnover

Loan modification application fee

N/a

 

Card service fees

 In accordance with Ameriabank CJSC Business Card Rates and Fees (12CIB PL 72-54)2

Forms of loan repayment

Grace period

N/a

Repayment

Monthly repayment of interest, with the payment of principal at the end of the term. Any payments and credits to the card account shall be applied for the settlement of interest outstanding as of the moment.

Security

Eligible security

1. Pledge of cash flows through the account
2. In case of turnover-based overdrafts issued via business cards, a guarantee by another individual and/or entity is required. Furthermore, the source of the guarantor’s income should not depend on the financed business, and there should be no material delays in the guarantor’s credit history (no more than overdue 30 days within the recent 2 years but max 10 consecutive days)

Description of eligible additional collateral

Real estate 3, vehicles, plant and equipment to the reasonable satisfaction of the bank, metal accounts in gold, cash and bonds issued by Ameriabank

LTV ratio (based on the liquidation value of the additional security)

1. Up to 40% of average monthly net cash flows
If credit line is issued to clients having POS-terminals, 5x of average monthly POS turnover
(Should this ratio be breached during the loan term, the credit limit may be reviewed or revoked)
2.  In case of additional security the credit limit may exceed 40% of the average cash flows, in which case the LTV ratio for the amount over the credit limit shall be as follows below:
1.  Up to 100% if the loan is secured by real estate
2. 50% if the loan is secured by a vehicle
3. 40% if the loan is secured by plant and equipment, but not more than 30% of the value of aggregate pledge
4. 80% if the loan is secured by metal accounts in gold
5. If the loan is secured by cash/bonds issued by Ameriabank:
-90% if currency of the collateral is the same as of the loan
-70% if currencies of the collateral and the loan are different

Age of vehicles to be pledged

Max 12 years for foreign brand vehicles other than vehicles made in Russia, China and Iran, in which case max age is 8 years

Location of real estate to be pledged

 Armenia

Property appraisal

Pledged assets to be appraised by an appraising partner of the bank.

Additional security

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.

 

Insurance of property

The insurance of the pledged real estate is to be obtained only if it is or will be used for business purposes.
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                

Loan service fees 4

Modification of the loan terms

AMD 25,000

Substitution of pledged property (for real estate; including change of the property owner)  

AMD 20,000

Substitution of pledged property (for vehicles; including change of the owner of the pledged vehicles)

AMD 10,000

Provision of pledge-related consents, permissions and references

AMD 10,000 (VAT included)

Change of the loan repayment date

AMD 10,000

 

Additional fees payable by the client (where there is additional collateral apart from the account turnover)

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

 

Early repayment

N/a

 

Late payment fines and penalties

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

1 No creditworthiness ratios are calculated and no business analysis and proof of income are required for loans secured by cash and metal accounts in gold.

2 Ameriabank CJSC Business Card Rates and Fees (12CIB PL 72-54, approved by Management Board Resolution # 24/19/13 dated June 27, 2013). Available at https://ameriabank.am/useful-links

3 Geodetic measurement is required for any land other than fenced plots or grounds attached to house, if:
- Client has applied for a loan above AMD 50 million, and
- Share of credit limit to be secured by such land plot exceeds 30% of total available credit limit.  For the purposes of this document total available credit limit means the sum of all loan proceeds made available to client by decision of the bank’s authorized body within acceptable LTV ratio and subject to disbursement at the given moment.

4 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.

Required documents filed together with loan application

  • ID of the shareholders and CEO of the legal entity/Individual entrepreneur
  • TIN
  • Charter (for corporate applicants)

 

Documents required after initial approval

  • ID of the shareholders
  • Tax clearance certificate (n/a in case of score-based automatically approved loans/overdrafts)

 

Documents required after loan approval

  • Approval of the authorized body of corporate applicant to execute loan and pledge-related transactions
  • Purchase documents (required in case of automatically approved SME loans for purchase of solar power plants and water heating systems)
  • Other documents as the bank's specialist may request

 

Acting in accordance with the Republic of Armenia Law “On Combating Money Laundering and Terrorism Financing” Bank may request you to provide additional information and documents for customer due diligence based on the “Know your customer” principle, as well as ask you additional questions during verbal communication (if required so).

Old terms

Last updated on 02.05.2022, 10:00