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Terms and conditions

Secured by cash flows and guarantee (D.1.)

Secured by real estate or vehicle (D.2.)

1

Client

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

2

Exclusion list

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

D.1. AMD 1,000,000 - AMD 10,000,000 or equivalent in other currency (USD, EUR)

D.2. AMD 10,000,000 - AMD 20,000,000 or equivalent in other currency (USD, EUR)

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Loan Amount

4

Loan term

1 year

3 years

5 years

5

Grace period (for principal):

N/a

For loans in AMD

D.1. (loan/overdraft): from 14,5%/15,5%

D.2. (Loan/overdraft): from 13%/14%

D.1. (loan/overdraft): from 15,5%/16,5%

D.2. (loan/overdraft): from 14%/15%

D.1. (loan/overdraft): from 16,5%/17,5%

D.2. (loan/overdraft): from 15%/16%

For automatically approved business loan/overdraft in AMD (D.1): from 13% (loan) or 14% (overdraft)

For loans in USD

D.1. (loan/overdraft): from 11,5%/12,5%

D.2. (loan/overdraft): from 10%/11%

D.1. (loan/overdraft): from 12,5%/13,5%

D.2. (loan/overdraft): from 11%/12%

D.1. (loan/overdraft): from 13,5%/14,5%

D.2. (loan/overdraft): from 12%/13%

For automatically approved business loan/overdraft in USD (D.1): from 10% (loan) or 11% (overdraft)

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Annual interest rate*

For loans in EUR

D.1. (loan/overdraft): from 10%/11%

D.2. (loan/overdraft): from 8,5%/9,5%

D.1. (loan/overdraft): from 11%/12%

D.2. (loan/overdraft): from 9,5%/10,5%

D.1. (loan/overdraft): from 12%/13%

D.2. (loan/overdraft): from 10,5%/11,5%

For automatically approved business loan/overdraft in EUR (D.1): from 8,5% (loan) or 9,5% (overdraft)

Loan disbursement fee (chargeable lump-sum at the time of provision)

1% of loan amount

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N/a in case of online application for score-based automatically approved SME loans/overdrafts

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Late payment fee**

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

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Repayment

Annuity (equal monthly installments consisting of a portion of loan and a portion of interest) in case of loans Principal payable at the end of term in case of overdraft

N/a

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Early repayment

D.1: Cash flows, personal guarantees by business founders/beneficial owners and other physical and/or legal entities as requested by the bank

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Loan security

D2: Cash flows, personal guarantees by business founders/beneficial owners and other physical and/or legal entities as requested by the bank, real estate5  or vehicle

The value of the loan security is included in the estimation of the LTV ratio in an amount not more than:

1.  Real estate: up to 100%

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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 loansiv)

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 10 million, and (ii) outstanding unsecured credit obligations of the client. Furthermore, if the client’s outstanding unsecured credit obligations are above AMD 10 million, the LTV ratio is calculated only in relation to the requested amount, in full.

The insurance of the pledged real estate is to be obtained only if it is or will be used for business purposes. Insurance for pledged real estate and vehicles to be maintained throughout the term of loan:

1.  If 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:

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Pledge 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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Application handling period

D.1. Immediately for automatically approved loans up to 2 business days for other loans

D.2 No more than 3 business days.

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Validity period (period during which loan approval is effective)

7 business days

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Form of disbursement

Wire transfer to bank account

**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.