SME LOANS

“Farm Credit Armenia” UCO CC provides SME loans to those individuals and legal entities, who have at least 6 months experience and are involved in one of the below-mentioned activities in marzes (regions) of Armenia:

• Retail and wholesale trade;
• Production;
• Services;
• Other activities

You can find detailed information on lending terms, maturity, prices, commission and other possible fees under “Tariffs” section.

SME loans and their interest amounts repayments shall be effected on monthly basis. In individual cases, depending on customer’s cash flows, up to three months repayment period of loan amount may be set forth.

In individual cases the loan committee may pass a resolution to exceed the loan amount the above mentioned sizes.

Loans are extended in non-cash mode by transferring the money to the customer’s account.

The customer may effect advanced repayment. In case of full repayment of loan amount within three months after loan extension the customer makes a payment of interest amount calculated for the first three months.

Interest calculation mode

In “Farm Credit Armenia” UCO CC the interests are calculated at a ratio of nominal interest rate to the loan actual remainder. In case of loan extension in foreign currency, the exchange rate may affect on loan repayment.

Other fees

The cooperative members while being provided with loans effect payments at the rate of 2% of loan amount for the purpose of statutory capital replenishment of the cooperative. Afterwards, the payments shall be registered as their participation in statutory capital of the cooperative.

In the process of becoming members of cooperative, the applicants make lump-sum payment at the amount of 3,000 AMD which is registered as their participation in statutory capital of the cooperative.

Penalty rates

In case loan amount or interest amounts repayments are not effected in time the customer shall make payment of penalty calculated in relation to the belated loan payment at 0,2% interest rate for each belated day. In case of fully repayment of loan amount within three months after loan extension the customer makes a payment of interest amount calculated for the first three months.

ATTENTION

YOUR PROPERTY (apartment, car, etc.) MAY BE CONFISCATED IN CASE YOU DO NOT EFFECT THE REPAYMENT OF LOAN AMOUNT AND INTEREST AMOUNTS IN TIME.

IN CASE YOU DO NOT IMPLEMENT LOAN PAYMENTS IN TIME THE INFORMATION ABOUT YOU WILL GO TO CREDIT REGISTRY.

In case of non-performance of obligations for the repayment of credit expenses (at the expense of the amount obtained from the realization of collateral), the obligation may be redeemed at the expense of lessee’s other property.

The following items may serve as collateral:

-             Industrial premises, buildings;

-             Lands, fish lakes, gardens;

-             Transport vehicles: passengers and cargos 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 loan extension:

For legal entities:

-             Loan application

-             Copy of state registration certificate;

-             Copy of main agreement;

-             Copy of the Charter;

-             Financial statements;

-             The founders’ resolution on pledging the organization property

-             Copies of ownership certificate or ownership proofs;

-             Copy of director’s assignment order;

-             Copy of director’s passport;

-             The passport of pledged machinery when needed;

-             Copy of registration certificate of the automobile

For individuals:

-             Loan application;

-             Passport;

-             Documents certifying the property right of loan collateral;

-             Information on incomes (salary, etc.);

-             The passport of pledged machinery when needed;

-             Information on incomes (salary, etc.)

Approval of loan application

The resolution on loan application shall be adopted within 20 days. The customer shall be informed of the passed resolution on the same day. The loan is extended within two days after drawing up the collateral and/or guarantees.

Factors of loan 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

-             The cost of collateral shall not exceed 80%.

Factors of loan 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 lending services. Upon the customer’s request the organization may submit the rejection in written form.