The leasing services are provided to individuals and legal entities engaged in agricultural, agribusiness and other activities.
The following fixed assets sold in primary market may be provided as leasing products:
-  Agricultural machinery
-  Production lines and equipment
-  Construction machinery
-  Transport means
-  Other fixed assets
Dependent on the applicant’s creditworthiness leasing prepayment may be 0-30% of leasing product cost.

The applicants for leasing services shall become members of the cooperative by established order by paying membership fees.

‘Farm Credit Armenia” Membership Procedure 

 Leasing terms and conditions

For more information on leasing terms and conditions please visit “Tariffs” section.
In case of leasing the annual lease rate is implemented this is calculated on the basis of lease value (the difference between leasing item value and prepayment made by the customer).

In order to avoid force-majeure situations, the fixed assets provided by leasing shall be insured in the size of 0, 8% of design value if their value exceeds 1,000,000 AMD and there is a note on it in loan committee’s minutes. The fixed asset’s value of up to 1,000,000 AMD requires no insurance.

The repayments shall be effected on monthly basis.
After the agreement termination, the lessee is entitled to purchase the fixed asset provided as leasing product with a right of property making payment at the rate of 1% of lease agreement amount.
 
In case of premature termination of leasing agreement and intention of leasing product purchase the customer shall make payments of accrued interests defined for that moment and 1% of leasing agreement amount.

Other fees

Cooperative one-time membership fee:               3,000 AMD
Cooperative members effect payments at the rate of 1% of loan amount for the purpose of statutory capital replenishment of the cooperative:
In case of first leasing        1 %-of lease value, but no more than 150,000 AMD   
In case of second and further leasing/loans:      10,000 AMD

The aforementioned amounts are registered as the cooperative member’s participation at the cooperative’s chartered capital.

Penalty rates
In case leasing payments are not effected in time the customer shall make payment of penalty calculated in relation to the belated leasing payment at 0, 2% interest rate for each belated day.

 
ATTENTION
THE LEASING PRODUCT MAY BE REVOKETED IN LEGAL FORM IN CASE YOU DO NOT IMPLEMENT INTEREST AND LOAN AMOUNT PAYMENTS IN TIME.
 
IN CASE YOU DO NOT IMPLEMENT LEASING PAYMENTS IN TIME THE INFORMATION ABOUT YOU WILL GO TO CREDIT REGISTRY.
The loan committee may require guarantees, pledges from the third party.
 
The following items may be provided as leasing products:
-   Transport means (passenger and cargo transport)
-   Agricultural machinery (combines, tractors, seeders and other agricultural tools and supplies);
-   Building machinery: cranes, truck cranes, bulldozers;
-   Industrial conveyers and other supplies;
-    Finished products, products in turnover;
-    Neat and small cattle, sow

Below is the list of documents required for leasing:

For legal entities:
-   Application for leasing services;
-    Copy of state registration certificate;
-    Copy of main agreement;
-    Copy of the Charter;
-     Financial statements;
-     Copies of ownership certificate or ownership proofs;
-     Copy of director’s assignment order;
-     Copy of director’s passport;
 
For individuals
-    Passport;
-    Application for leasing services;
-    Information on incomes (salary, etc.)
 
Approval of leasing application
The resolution on leasing application shall be adopted within 20 days. In case of favourable resolution of the Loan committee the fixed asset shall be provided as leasing product to the Lessee not later than within 90 days after prepayment is effected.
 
Factors of leasing application allowance by the credit organization
-   Business activity only in RA marzes;
-   Meeting with program requirements;
-   Correspondence  of creditworthiness with requirements set by the organization;
-    At least 6 months of experience at the relevant sphere;
-    Presence of collateral
         
Factors of leasing application rejection by the credit organization:
The applicants who do not meet the above mentioned requirements or the organization is not complied with the level of applicant’s creditworthiness, shall not make use of leasing services. Upon the customer’s request the organization may submit the rejection in written form.