Commercial lending and Loan projects

Commercial lending

In the frames of own funding and international lending projects “Anelik Bank” CJSC extends Business development loans to legal entities.

According to projects the loans are extended on the following terms:

1. EBRD SME development project:

  • Upper limit of the loan – EUR 250.000 or equivalent in USD, AMD
  • Upper maturity – 60 month,
  • Annual interest rate – 13-24%.

2. EBRD SME development project:

  • Upper limit of the loan – USD 500.000 or equivalent in EUR, AMD
  • Upper maturity – 60 month,
  • Annual interest rate – 13-24%.

3. EBRD Co-financing project

  • Minimal amount of the loan – EUR 400.000 or equivalent in USD, AMD
  • Upper limit of the loan – EUR 500.000 or equivalent in AMD, USD
  • Upper maturity – 60 month,
  • Annual interest rate starting from 11%.

4. EBRD Stable Energy Efficiency project

  • Upper limit of the loan – USD 2.500.000 or equivalent in AMD, EUR
  • Upper maturity – 60 month,
  • Annual interest rate starting from 11%.
  • Free technical Assistance within the project is provided by ArmSEFF

5. German – Armenian Fund SME development project

  • Upper limit of the loan – AMD 60.000.000
  • Upper maturity – 60 month,
  • Annual interest rate – 13-24%.

6. Economy stabilization project of the RA Government

  • Upper limit of the loan – AMD 500.000.000
  • Upper maturity – 60 month,
  • Annual interest rate up to 15%.

7. Project of SME Development National Centre (SME DNC)

The loans are provided for regions of low economic activity 9unless the activity is the innovation) border and rural areas, disaster zone.

· The upper limit of the loan amounts to AMD 45.000.000

· The upper maturity – 36 months,

· Annual interest rate makes up to 15%.

SME DNC may guarantee up to 70% of the principal amount, which may not exceed AMD 10.000.000 if monetary expressed.

8. Rural entrepreneurship and small scale commercial agriculture development project

Within the frames of the project the bank extends loans to individuals and legal entities involved or intending to be involved in RA rural activity.

· The upper limit of the loan amounts to USD 15.000 or equal in drams,

· The upper maturity – 84 months,

· Annual interest rate makes up to 15%.

9. Rural territories development project

Within the frames of the project the bank extends loans to individuals and legal entities involved or intending to be involved in rural activity in Shirak, Lori, Tavush, Gegharkunik, Vayots dzor, Syunik and Aragatsotn marzes.

· The upper limit of the loan amounts to USD 15.000,

· The upper maturity – 84 months,

· Annual interest rate makes up to 15%.

10. AUAC Trpnjyan project

Within the frames of AUAC Trpnjyan project loans are extended to persons provided by AUAC.

· The upper limit of the loan amounts to USD 10.000 equal in Armenian drams,

· The upper maturity – 36 months,

· Annual interest rate makes up to 6%.

Loans in the frames of the given project in Shirak and Tavush marzes are extended free of collateral exceptionally. No service fee is charged.

11. KFW renewable energy project

The loans are extended for development of hydro electro stations.

· The upper limit of the loan amounts to AMD 350.000.000,

· The upper maturity – 120 months,

· Annual interest rate makes 10.5%.

12. Co-financing project of Lebanese Credit Bank

· The lower limit of the loan amounts to AMD 500.000.000 or equal in foreign currency

· The upper amount of the loan – AMD 10.000.000.000

· The upper maturity – 120 months,

· Annual interest rate makes up to 20%.

13. Entrepreneurship development project, overdrafts, card loans

· The upper amount of the loan – AMD 2.500.000.000 or equal in foreign currency

· The upper maturity – 120 months,

· Annual interest rate makes up to 22%.

14. Guarantee letter

Anelik Bank CJSC provides guarantee letters to legal entities and private entrepreneurs secured with im/movable property, golds, equipment and facilities. Commission against the guarantee is charged in amount of 2.5 % annul interest rate but not les than AMD 10.000.

The terms may differ from those set above upon decision of the Bank, provided that they do not contradict the requirements of effective normative acts and programs.

The following service fees are set for commercial loans:

Loan amount

Service fee

1. Up to 3 million Armenian drams inclusive or equal in foreign currency


2%

1. From 3 million AMD or equal in foreign currency to 50 million AMD or equal in foreign currency

1%

3. From 50 million AMD or equal in foreign currency to 200 million AMD inclusive or equal in foreign currency

0.5%

4. Above 200 million AMD or equal in foreign currency

Contractual

Fee for removal or replacement of collateral during the effective period of the loan is charged in amount of AMD 8000.

Commercial loans are extended against security only if otherwise provided by the project requirements.

The following is accepted as a collateral:

  • Real estate - land being privacy of the pledger, buildings, constructions, own apartments, private houses
  • Fixed assets,
  • Working assets,
  • Car,
  • Precious metals,
  • Facilities.

Following verbal and written warning, judicial proceeding shall be applied to charge the collateral of the clients, breaking credit liabilities, the charge may be spread over the other property of the client provided that the collateral is not sufficient to cover the liabilities.

According to collateral agreement it is possible to transfer the property right of the pledged property to the bank.

The following documents shall be submitted to receive loan:

For legal entities:

  • Application on the name of the Chairman of the Board (manager of branch),
  • Certificate of property right
  • Basic agreement,
  • Charter,
  • Financial statements,
  • Tax reference on liabilities,
  • Minutes of the General assembly of founders concerning credit request and pledging at “Anelik Bank” CJSC
  • List of debtors and creditors,
  • Copies of property certificate and the grounds,
  • Reference on shares from the state register,
  • Extract of order on appointment of the director,
  • Cadastre reference,
  • Reference from the community centre, if apartment is pledged,
  • Passport of machinery (if pledged),
  • Technical passports of cars (if pledged),
  • Other documents as required.

For individuals

  • Application on the name of the Chairman of the Board (manager of branch),
  • Reference on property right of the pledged property or reference from the notary public on the property being free from right of third parties
  • Income reference (salary, etc)
  • Other documents as required.

International lending projects do not provide facilities for the following activity:

  • Production or sale of arms and ammunition
  • Production or sale of leather and fur of animals (unlike leather products),
  • Tobacco,
  • Alcohol beverages,
  • Casinos, currency speculation,
  • Investment in securities of any type,
  • Projects that can have a negative impact on the environment, climate, air, water, soil, vegetation and animal world.

Method of loan interest calculation

Interest rates against loans are applied towards the balance of the principal amount. Repayment of interest is made on a monthly basis. Based on the special features of the business when repayment of principal amount of the loan it is possible to set unequal distribution repayment schedule. Irrespectively of the currency of the loan repayment of the loan is in Armenian drams only. Exchange currency rates may have an influence on the loan repayment in case of loans extended in foreign currency.

Early repayment terms

Borrowers shall enjoy the right for early repayment of the loan and actual interest. Penalty is charged against early repayment of loans (other that extended to physical persons) amounting over 35.000.000 Armenian drams or equal in foreign currency. The above penalty amounts to 2 month interest calculated according to annual interest rate of the loan towards the repaid amount.

Fines

Fine for each overdue day of the loan (loan and interests) shall amount to 0.1-0.2 % of the obligation, and in case of termination of the loan agreement interest calculated towards the obligation from the date of termination to the obligation repayment date according to banking interest rate set by the CBA.

Availability of the loan

The following minimal requirements may serve as the grounds for availability of commercial loans:

  • Compliance with project requirements,
  • Reliable business project or at least 3 month profitable activity,
  • Availability of collateral, if otherwise provided by project requirements.

Foreign currency influence

Based on the fact that the bank extends loan in both Armenian drams and foreign currency the borrower should understand that foreign currency fluctuations may have both positive and negative influence on repayment of the loan.

Rejection

On request of the customers the Bank may provide written rejection to those applicants who cannot be credited due to failure to comply with project requirements or if the creditworthiness of the borrower is not sufficient for the Bank. The Bank is enabled to inform the rejection to other RA banks and credit companies (RA Law “On banking secrecy”)

Warning:

YOUR PROPERTY MAY BE FORECLOSED IN CASE OF DEFAULT OF INTERESTS AND THE PRINCIPAL AMOUNT OF THE LOAN.

INFORMATION ON FAILURE TO PAY OFF INTERESTS AND THE PRINCIPAL AMOUNT IN A DUE TIME WILL BE REGISTERED AT THE CREDIT REGISTER.

Last update 16.12.2011, 10:20