Line of Credit | Medium Business | Ameriabank
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Line of Credit

For businesses with up to AMD 750M annual turnover

In each new product offer we are guided by the desire to create the best for you.

We know that your finances are in constant turnover and free cash is something business always needs.

If you want to purchase working assets, or just need cash for short-term projects, our line of credit will come in handy.

Line of credit is the best option to handle short-term financial needs. Unlike loans, a line of credit can be utilized portion by portion; in other words, you can use just the amount you need at each particular time within your overall credit limit.

Available in Armenian drams,
US dollars, euros

From USD 1,500,000

 equivalent in AMD or other currency

3-5 years

repayment period

B

Line of Credit 

B.1

Line of credit to large enterprises 

B.1.1

Revolving line of credit

B.1.1.1

Secured by cash collateral, Short-term treasury bonds, standard gold bars

B.1.1.2

Secured by property and equipment, guarantees and warranties, other securities 

B.1.1.3

Secured by cash flows, finished goods, raw materials or mixed collateral

B.1.2

Non-revolving line of credit 

B.1.2.1

Secured by cash collateral, Short-term treasury bonds, standard gold bars

B.1.2.2

Secured by property and equipment, guarantees and warranties, other securities

B.1.2.3

Secured by cash flows, finished goods, raw materials or mixed collateral

B.2

Line of credit to SMEs 

B.2.1

Revolving line of credit

B.2.1.1

Secured by cash collateral, Short-term treasury bonds, standard gold bars

B.2.1.2

Secured by property and equipment, guarantees and warranties, other securities

B.2.1.3

Secured by cash flows, finished goods, raw materials or mixed collateral

B.2.2

Non-revolving line of credit

B.2.2.1

Secured by cash collateral, Short-term treasury bonds, standard gold bars

B.2.2.2

Secured by property and equipment, guarantees and warranties, other securities

B.2.2.3

Secured by cash flows, finished goods, raw materials or mixed collateral

B.3

Line of credit to SMEs +

B.3.1

Revolving line of credit

B.3.1.1

Secured by real estate

B.3.2.

Non-revolving line of credit

B.3.2.1

Secured by real estate



Financing is provided to Armenia-based entities managed and/or owned by women.

Credit limit

Over AMD or other currency equivalent of USD 1,500,000

Term

Up to 3 years

Term for lines of credit intended to finance property, plant and equipment 

Up to 5 years

Limit reduction

According to the schedule or at the end of the maturity period

Annual interest rate on utilized amount*

For lines of credit in AMD from 12 %

For lines of credit in USD  from 9 %

For lines of credit in EUR from 8 %

 from 4% if without confirmation, from 6% if with confirmation by other banks.

In case of discounting under LCs from 9%

The interest rate for lines of credit in other currencies is determined by the Management Board

In case of cash collateral: % of deposit (time or demand) + 4%, if the line of credit and the deposit are in the same currency % of deposit (time or demand) + 5%, if the line of credit and the deposit are in different currencies

Annual interest rate for non-utilized amounts

Up to 2 %

Loan provision fee **

Up to 1 year lines of credit: 0-0.5% of credit limit

1-2 year lines of credit: 0-0.7% of credit limit

Over 2 year lines of credit: 0-1.5% of credit limit

Lines of credit secured by cash collateral: 0% 

Late payment fee***

Fine in the amount of 0.13% of overdue loan/interest for each day beyond terms 

Line of credit repayment

As per schedule or at the end of term (monthly, quarterly, semi-annually or otherwise as defined under loan agreement)

Early repayment

Where envisaged under the loan agreement in the amount of up to 6-month interest on early repaid sums

Line of credit security

 cash, T-bills, standard gold bars, bonds issued by Ameriabank, property and equipment, guarantees, warranties and other securities cash flows, current assets or mixed collateral, Real estate****

Loan-to-value (LTV) ratio*****

Max 100%, if the currency of loan is the same as that of collateral or, if different, it is included in SDR basket, and max 95%, if the currency of loan is different from that of collateral, except for currencies included in SDR basket

a) Up to 80% of appraised value of collateral (in case of real estate) for loans with up to 96-month term; 90% if the debt service coverage ratio of the borrower is 1.5 or higher; up to 70% if the loan term exceeds 96 months

b) Up to 50 % of appraised value of collateral in case of movable property; 60% if the debt service coverage ratio of the borrower is 1.5 or higher and the loan term does not exceed 96 months up to 80% for the movable property which is going to be purchased or has been purchased during the last six

months, starting from the loan application submission date, where the loan term does not exceed 96 months

c) Up to 30 % of appraised value of collateral in case of inventories (finished goods, raw materials, etc.). Note that the share of this kind of collateral cannot exceed 40% of total pledge.

d) max 50% of average monthly bank account turnover for the most recent period from 6 (min) to 12 (max) months, for cash flows

e) for shares:

- up to 80% of appraised value of collateral in case of running business

- up to 60% of appraised value of collateral in case of business not yet running (project-based loans)

Pledge insurance

To the extent of credit limit, on annual basis

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

Application handling period

up to 5-15 business days upon receipt of the complete set of documents

Subject to extension for not more than 10 business days based on review

Validity period (period during which the decision on line of credit approval is effective)

30 days, unless otherwise specified by authorized body’s decision

Re-approval of line of credit

Upon expiry of approval validity period, but not later than 60 days after the initial approval date

Form of disbursement

Wire transfer to bank account

Loan modification application fee******

 

AMD 500 000 

*Maximum annual interest rate shall not exceed 24%. The interest rate specified in the loan agreement shall continue to be applied to overdue loan/line of credit/overdraft. 

**The bank can define a schedule for payment of loan disbursement fee, in which case any fee outstanding at the time of repayment of loan before the due date shall be payable together with early repayment of loan or in whatever other manner the bank may define.

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

****  Real estate must be located in Yerevan.

*****Where the guarantee is the main security and there are pledged items as well, loan-to-value ratio is not applicable. This being the case, the character of security (main or additional) is defined in loan conclusion and approved by the authorized body.

******Loan modification fee shall be payable by the client in case the application for revision of terms was submitted by the client at their initiative and approved by the bank. The fee is paid based on analysis and conclusion prepared by relevant department of the bank for the client’s application. In other cases of modification of loan terms charging of the fee shall be subject to decision of the bank’s authorized body. 

Ameriabank provides credit lines to large, small and medium businesses. The Bank extends revolving and non-revolving credit lines. The revolving credit line provides an opportunity to keep financial resources in constant circulation, within a pre-approved credit limit, until the beginning of the repayment period.

The maximum credit limit is determined based on the creditworthiness and credit history of the borrower, and on thorough examination of the characteristics of the underlying project.

The interest payable under the credit line is calculated in the credit line currency daily both in relation to the utilized and non-utilized amounts.


Example

Credit limit – 1,000,000 AMD

Amount utilized under the credit line – 900,000 AMD

Non-utilized amount – 100,000 AMD

Annual interest rate accrued to the utilized amounts – 15 %

Annual interest rate accrued to non-utilized amounts – 2%

Daily interest on the utilized amounts – 900,000*15%/365=369.86

Daily interest on the non-utilized amounts – 100,000*2%/365=5.479


Interest is payable each month.

Depending on the borrower’s business specifics, the bank may stipulate quarterly payment of interest in the loan agreement.

In case the borrower fails to fulfill his liabilities in a proper manner, the bank may foreclose the pledged property either through an out-of-court or through a court procedure.

When applying for a loan, make an informed decision

Last updated on 29.09.2021, 11:37