Automatically approved SME loan/overdraft (not secured by assets)

Loan type

Automatically approved SME loan/overdraft

Purpose

Business expansion and financing of current operations, transfer of outstanding business loans with other banks/credit organizations to Ameriabank CJSC                 

Clients

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

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

Creditworthiness assessment

In case of scoring-based automatically approved business loans/overdrafts: according to the approved score card

In case of loans analyzed by the loan officer: according to the approved criteria

Currency

AMD

USD

EUR

Minimum and maximum loan limit

AMD 1 million - 10 million or its equivalent in foreign currency

Term (months)

12 months

Annual interest rate (fixed) on loans

14.5%
(effective rate: 17.8%)

11.5%
(effective rate: 14.3%)

10.0%
(effective rate: 12.6%)

Annual interest rate (fixed) on overdrafts

15.5%
(effective rate: 17.9%)

12.5%
(effective rate: 14.5%)

11%
(effective rate: 12.8%)

Term (months)

36 months

Annual interest rate (fixed) on loans

15.5%
(effective rate: 17.5%)

12.5%
(effective rate: 14.0%)

11.0%
(effective rate: 14.0%)

Annual interest rate (fixed) on overdrafts

16.5%
(effective rate: 18.3%)

13.5%
(effective rate: 14.8%)

12%
(effective rate: 14.8%)

Term (months)

60 months

Annual interest rate (fixed) on loans

16.5%
(effective rate: 18.3%)

13.5%
(effective rate: 14.9%)

12.0%
(effective rate: 13.2%)

Annual interest rate (fixed) on overdrafts

17.5%
(effective rate: 19.3%)

14.5%
(effective rate: 15.8%)

13%
(effective rate: 14.1%)

Fixed annual interest rate on the score-based automatically approved SME loans

13-19%
(effective rate: 13.8-21.3%)

10-16%
(effective rate: 10.5-17.8%)

8.5-14.5%
(effective rate: 8.8-16%)

Fixed annual interest rate on the score-based automatically approved SME overdrafts

14-20%
(effective rate: 14.9-22.4%)

11-17%
(effective rate: 11.6-18.9%)

9.5-15.5%
(effective rate: 9.9-17.1%)

Annual interest rate on non-utilized overdraft amounts

N/a

Loan disbursement fee

1% of the loan amount
N/a in case of online application for score-based automatically approved SME loans/overdrafts

Loan cashing

Non-applicable to SME loan
According to effective tariffs of the Bank for SME overdraft 

Repayment

SME loans: annuity (equal loan installments consisting of a portion of loan and a portion of interest; payable on monthly basis)
SME overdraft: repayment of principal at maturity

Security

1. Pledge of cash flows through the account
2. Personal guarantee of the business founder/beneficial owner
3. In case of SME loans/overdrafts analyzed by the loan officer, a guarantee by another individual and/or entity is required. Furthermore, the source of the guarantor’s income should not depend on the financed business, and there should be no material delays in the guarantor’s credit history (no more than 30 overdue days within the recent 2 years but max 10 consecutive days)

Early repayment penalty

N/a

Late payment fines and penalties

The interest rate specified in the loan agreement shall continue to be applied to overdue loans.
Fine in the amount of 0.13 % of overdue loan/interest for each day beyond terms

Other terms

Overdrafts may be also issued on business cards in accordance with the Bank's effective tariffs. This does not include the annual service fee which is not charged in case of score-based automatically approved SME overdrafts.