“Farm Credit Armenia” UCO CC provides SME loans to those individuals and legal entities, who have at least 3 months experience in corresponding sphere in marzes (regions) of Armenia.
In order to get SME loans the applicants shall become members of the cooperative by established order and by paying membership fee.

“Farm Credit Armenia” UCO CC Membership Procedure
In case of SME loans, if the location of factual activity is in urban communities of the regions, the customer may get use of the organization services without becoming the cooperative’s member and paying membership fee.

SME loans terms and conditions

 SME loans and their interest amounts repayments shall be affected 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.
You can find detailed information on lending terms, maturity, prices, commission and other possible fees under “Tariffs” section.
Loans are extended in non-cash mode by transferring the money to the customer’s account.

Minimum size of loans prepayment is not envisaged.
The customer may affect 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 outstanding balance and considering 365 days in a year.
Loan interest calculation sample.
I=L*R/365*N, where:
I = interest
R = interest rate
L = loan amount outstanding balance
N = number of days between repayments
Example:
R=18%
L= 3,000,000 AMD
N=30 days
I= 3,000,000*18%/365*30=44,383
The loan nominal interest rate remains unchanged during the loan whole activity.

Other fees
Cooperative one-time membership fee             3,000 AMD
The cooperative members while being provided with loans effect the following payments for the purpose of cooperative chartered capital replenishment.
In case of the first loan     1% of loan amount (but no more than 150,000 AMD)
In case of second and further loans               10,000 AMD
The aforementioned amounts are registered as the cooperative member’s share at cooperative’s chartered capital.
In case the real estate is pledged the mortgage agreement shall be notoriously ratified:
Notarial ratification:                                      10,000 – 20, 000 AMD
In case of real estate and vehicles are pledged the right of pledge are subject to state registration:
State registration of right of mortgage pledge   25,000 – 35,000 AMD
State registration of right of vehicles pledge   3,000 AMD

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.

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 ponds, orchards;
-    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

Maximum index of “Loan compared to collateral value” is 80 %.
Collateral appraisal and insurance by professional organizations is not mandatory.

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 after the application is received. The customer shall be informed of the passed resolution on the same day. The loan is extended within three days after drawing up the collateral and/or guarantees and registering the right of pledge.

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;
-    Presence of collateral

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.