Retail SME loans secured by assets

 

Loan type

 Retail SME loans secured by assets

 

Purpose *

Purchase of working and fixed assets; other investments; transfer of outstanding business loans with other banks/credit organizations to Ameriabank CJSC
Purchase of energy efficient equipment and facilities, infrastructure construction and other projects using renewable energy sources**                 

 

Clients

Legal entities and individual entrepreneurs 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
8. Based on the IFC Exclusion List (see Annex 1) if financed under GAF-MSME and GAF “Energy Efficiency for SMEs” programs

 

Creditworthiness assessment***

According to the approved criteria

   Loan conditions  

Minimum and maximum loan limit

  AMD 3 million - 150 million or its equivalent in foreign currency

Currency

AMD

USD

EUR

Term (months)

12-36 (with a 1-6 months grace period)

Standard fixed annual rate *******

12.5%
(effective rate: 14.1-21.9%)

9.5%
(effective rate: 10.7-18.2%)

8.0%
(effective rate: 8.6-16.5%)

Term (months)

37-60 (with a 1-6 months grace period)

Standard fixed annual rate *******

13.5%
(effective rate: 14.9-17.4%)

10.5%
(effective rate: 11.5-13.9%)

9.0%
(effective rate: 9.9-12.2%)

Standard adjustable annual rate (rate can be changed starting from the 13th month)*******

Fixed component 5.0% + variable component (base rate)
(effective rate: 12.6-15.1%)

Fixed component 8.0% + variable component (base rate)
(effective rate: 10.4-12.8%) 

Fixed component 7.0% + variable component (base rate)
(effective rate: 8.2-10.6%) 

Term (months)

61-120 (with a 1-6 months grace period)
 (doesn’t apply to the purchase of working capital)

Standard fixed annual rate *******

N/a

11.5%
(effective rate: 12.4-14%)

10.0%
(effective rate: 10.7-12.3%)

Standard adjustable annual rate (rate can be changed starting from the 37th month)*******

Fixed component 6.0% + variable component (base rate)
(effective rate: 13.5-15.2%)

Fixed component 9.0% + variable component (base rate)
(effective rate: 11.3-12.9%)  

Fixed component 8% + variable component (base rate)
(effective rate: 9.1-10.6%)  

Standard annual interest rate in case of financing for purchase of solar power plants and water heating systems (irrespective of the loan term)

Fixed interest rate in case of financing of projects with cashback option

13%
(effective rate: 13.9-17.5%)

9% (effective rate: 9.5-12.9%)

7% (effective rate: 7.3-10.7%)

Internal resource fixed interest rate

12% (effective rate: 12.8-16.3%)

8% (effective rate: 8.4-11.8%)

7% (effective rate: 7.3-10.7%)

Fixed interest rate in case of financing for the energy efficiency (green technologies) and/or renewable energy purposes 

9% (effective rate: 9.5-12.9%)

N/a

N/a

Standard annual interest rate under GAF “Energy Efficiency for SMEs” program (irrespective of the loan term)

Standard annual interest rate

10.9% (effective rate: 11.3-19.2%)

N/a

N/a

Standard annual interest rate under the EBRD "Women in Business" program (irrespective of the loan term)

Standard annual interest rate

12.9% (effective rate: 13.2-21.1%)

N/a

N/a

Standard annual interest rate on the loans to agro-processing industry for procurement of agricultural raw materials (in accordance with the requirements of the respective program of the Armenian Government) 

Term (months)

 6-12 (with a 2-3 months grace period)

Standard annual interest rate

12% (with possibility of 9% subsidy)
(effective rate: 12.8-23.8%)

N/a

N/a

Standard annual interest rate on the loans for purchase of pedigree cattle to promote cattle-breeding (in accordance with the requirements of the respective program of the Armenian Government) 

Term (months)

 6-60 months (with a 12-months grace period)

Standard annual interest rate

12% (with possibility of 10% or 12%**** subsidy) (effective rate: 12.8-23.8%)

N/a

N/a

Loans******** issued out of other program resources*******

8.5%-15.0%
(effective rate: 8.9%-21.4%)

5.5%-12.0%
(effective rate: 5.6%-17.7%)

4.0%-11.0%
(effective rate: 4.1%-16.5%)

Other terms related to interest rate

If the loan is secured by cash or bonds issued by Ameriabank, the interest rate is:
- Applicable interest rate for cash/bond + 4%, but in any case not more than the rates specified above, if the loan and the collateral are in the same currency
- Rates specified above, if the loan and the collateral are in different currencies

Where the client wishes that insurance of property should be obtained by the bank, the rate of interest is increased by:
• 2.5% if the pledge is vehicle, or
• 0.5% if the pledge is plant and equipment.

- In case of financing for purchase of solar power plants and water heating systems, the insurance related costs are included in the loan interest rate.  
Where the insurance of real estate is obtained by the client, the interest rate is reduced by 0.05%, based on the share of each type of assets in the total collateral.

If loan-to-value ratio differs from approved standard, the applicable interest rate is increased by 0.5%.

Depending on credit history, the applicable interest rate can be increased by 0.5%.

If repayment schedule is differentiated or mixed, the applicable interest rate is increased by 0.5%.                                                                                                                               

 

If the client prefers a lending option without early repayment fee, the applicable interest rate is increased by +2%.

Loan disbursement fee

1% of the loan principal
• Does not apply to loans to agro-processing industry for procurement of agricultural raw materials and loans for purchase of pedigree cattle
• 0.5-1% of the loan principal or AMD 500,000, whichever is less, in case of financing for purchase of solar power plants and water heating systems

Loan cashing

N/a

Forms of loan repayment

Repayment

Annuity (equal monthly installments consisting of a portion of loan and a portion of interest)

Differentiated /decreasing/
(monthly repayment of equal portions of principal amount while interest accrues to outstanding loan and decreases each month)

Mixed
(The client may choose a preferable repayment schedule based on business seasonality, but the installment of the loan principal repaid during 1 year shall be equal to at least 15% of the loan principal specified in the agreement. Interest is payable on monthly basis)

Security

Eligible security

Real estate*****, vehicles, plant and equipment to the reasonable satisfaction of the bank, metal accounts in gold, cash and bonds issued by Ameriabank

LTV ratio (based on the liquidation value)

The value of the loan security is included in the estimation of the LTV ratio in an amount not more than:
1. Up to 100% if the loan is secured by real estate,
2. Up to 50% if the loan is secured by vehicles
3. 40%, but not more than 30% of total pledge, if the loan is secured by property, plant and equipment (this does not apply to financing for purchase of solar power plants and water heating systems in which case 100% of the project value is included irrespective of the share in the total pledge)
4. 80% if the loan is secured by metal accounts in gold with Ameriabank
5. If the loan is secured by cash/bonds issued by Ameriabank:
-90% if currency of the collateral is the same as of the loan
-70% if currencies of the collateral and the loan are different

Age of vehicles to be pledged

Max 12 years for foreign brand vehicles other than vehicles made in Russia, China and Iran, in which case max age is 8 years

Location of real estate to be pledged

 Armenia/Nagorno Karabakh

Property appraisal

Pledged assets to be appraised by an appraising partner of the bank.

Additional security

Individual guarantees by founders/beneficial owners of businesses are a required condition. The Bank may request guarantees by other individuals and/or companies as additional security.

 

Insurance of property

The insurance of the pledged real estate is to be obtained only if it is or will be used for business purposes.
The insurance of real estate, vehicles and plant and equipment is maintained throughout the loan term:
1. If by the Client: at least for the amount of the outstanding principal/credit limit
2. If obtained by the bank: to the extent of the outstanding principal/credit limit.
• In case of financing for purchase of solar power plants and water heating systems, the insurance should be obtained within 10 days upon installation of power plants/water heating systems.   
The following vehicles are not subject to insurance:
• Vehicles transporting hazardous materials (toxic substances, chemicals, radioactive and explosive  materials)
• Vehicles to be used in races, test drives; vehicles which have three wheels, snow removers, motorcycles, special purpose vehicles
 • Taxis and rental cars                                                                                                                                                                

Loan service fees******

Modification of the loan terms

AMD 25,000

Substitution of pledged property (for real estate; including change of the property owner)  

AMD 20,000

Substitution of pledged property (for vehicles; including change of the owner of the pledged vehicles)

AMD 10,000

Provision of pledge-related consents, permissions and references

AMD 10,000 (VAT included)

Change of the loan repayment date

AMD 10,000

 

Other fees payable by client

1. Fee for the unified statement from the State Committee of the Real Estate Cadaster adjunct to the RA Government; fee for police reference on vehicles encumbrance
2. Notary fee for registration of pledged real estate; fee for state registration of the bank’s security interest under the real estate pledge agreement; Fee for the certificate of registration of the security interest in the vehicle

Early repayment

5% of prepaid amount, chargeable if early repayment of the whole or part of loan is made during the first 3 years of loan term (does not apply to loans to agro-processing industry for procurement of agricultural raw materials and loans for purchase of pedigree cattle). The early repayment fee is not charged if the loan is repaid before the due date, whether in whole or in part, out of the loan proceeds disbursed by Ameriabank to the borrower specifically for this purpose. In case of loans in the amount of up to AMD 5 million or its equivalent in foreign currency any early repayment fines, fees, increase of rates or any other means affecting the borrower’s condition are not applied..

 

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

 

Downpayment in case of financing for purchase of solar power plants and water heating systems

5% min, but if the borrower and the vendor sign a buyback or debt waiver agreement, there is no down payment.

 

Loan disbursement tranches in case of finance for purchase of solar power plants and water heating systems

The loan can be disbursed in tranches where the share of each tranche is determined in accordance with the cooperation agreement with the vendor, provided that the share of the last tranche is at least 20% of the loan principal and is provided after insurance of the solar facilities.

 

Dealing with the cashback in case of finance for purchase of solar power plants and water heating systems with a cashback option

If financing is provided for purchase of solar power plants and water heating systems with a cashback option, at least 60% of the amount refunded (taking into account applicable taxes) is used for the loan repayment. In such a case the early repayment fees are nor applied.  This requirement is not applicable if the buyer (borrower) has provided at least 10% downpayment.

                     

* Unless otherwise specified in the Loan Agreement, the loan proceeds should be used for their intended purpose during no more than 3 months. In case of tranche loans, the amount of each tranche will be disbursed during no more than 3 months following the previous disbursement, after checking if the loan proceeds are used for their intended purpose.

                     

**Total cost of the specified energy efficient investments and associated works should comprise at least 70% of the loan principal. Up to 30% may be invested into other fixed assets of the borrower. The loans for this purpose are financed under GAF “Energy Efficiency for SMEs” program.

                     

***No creditworthiness ratios are calculated and no business analysis and proof of income are required for loans secured by cash and metal accounts in gold.

                     

**** For borderline areas

                     

*****Geodetic measurement is required for any land other than fenced plots or grounds attached to house, if:
- Client has applied for a loan above AMD 50 million, and
- Share of credit limit to be secured by such land plot exceeds 30% of total available credit limit.  For the purposes of this document total available credit limit means the sum of all loan proceeds made available to client by decision of the bank’s authorized body within acceptable LTV ratio and subject to disbursement at the given moment.

                     

******The fee is charged if the modification is requested by client. Where there are several applicable fees for the same modification, the highest fee is charged and only once. Fees are not applicable in case of loans secured by cash, bonds and metal accounts. If the modification implies adding new pledge or involving a new guarantor, no fee is charged. These fees do not apply to loans to agro-processing industry.

 

 

Retail SME credit lines (overdraft) secured by assets

 

Loan type

Retail SME credit lines (overdraft) secured by assets*

 

Purpose

Purchase of working and fixed assets; other investments; transfer of outstanding business loans with other banks/credit organizations to Ameriabank CJSC                 

 

Clients

Legal entities and individual entrepreneurs 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**

According to the approved criteria

Loan conditions

Minimum and maximum loan limit

AMD 3 - 150 million or its equivalent in foreign currency

Currency

AMD

USD

EUR

Term (months)

12-36 months

Annual interest rate (fixed)*****

13.5%
(effective rate: 15.2-16.6%)

10.5%
(effective rate: 11.8-13.1%)

9%
(effective rate: 10.1-11.5%)

Term (months)

37-60 months

Annual interest rate (fixed)*****

14.5%
(effective rate: 15.7-16.3%)

11.5%
(effective rate: 12.6-12.9%)

10.5%
(effective rate: 10.9-11.2%)

Loans***** issued out of other program resources******

8.5%-15.0%
(effective rate: 8.9%-21.4%)

5.5%-12.0%
(effective rate: 5.6%-17.7%)

4.0%-11.0%
(effective rate: 4.1%-16.5%)

Annual interest rate on non-utilized amounts

Up to 3 %

Other terms related to interest rate

If the loan is secured by cash or bonds issued by Ameriabank, the interest rate is:
- Applicable interest rate for cash/bond + 4%, but in any case not more than the rates specified above, if the loan and the collateral are in the same currency
- Rates specified above, if the loan and the collateral are in different currencies

Where the client wishes that insurance of property should be obtained by the bank, the rate of interest is increased by:
• 2.5% if the pledge is vehicle, or
• 0.5% if the pledge is plant and equipment.

- In case of financing for purchase of solar power plants and water heating systems, the insurance related costs are included in the loan interest rate.  
Where the insurance of real estate is obtained by the client, the interest rate is reduced by 0.05%, based on the share of each type of assets in the total collateral.

If loan-to-value ratio differs from approved standard, the applicable interest rate is increased by 0.5%.

Depending on credit history, the applicable interest rate can be increased by 0.5%.

Loan disbursement fee

1% of loan amount

Loan cashing

According to the effective tariffs of the Bank

 

Repayment

According to the schedule or at the end of the maturity period

Security

Eligible security

Real estate***, vehicles, plant and equipment to the reasonable satisfaction of the bank, metal accounts in gold, cash and bonds issued by Ameriabank

LTV ratio (based on the liquidation value)

The value of the loan security is included in the estimation of the LTV ratio in an amount not more than:
1. Up to 100% if the loan is secured by real estate¹
2. 50% if the loan is secured by a vehicle
3. 40% if the loan is secured by property, plant and equipment but not more than 30% of the value of aggregate pledge
4. 80% if the loan is secured by metal accounts in gold with Ameriabank:
5. If the loan is secured by cash/bonds issued by Ameriabank:
-90% if currency of the collateral is the same as of the loan
-70% if currencies of the collateral and the loan are different

Location of real estate to be pledged

Armenia/Nagorno Karabakh

Age of vehicles to be pledged

Max 12 years for foreign brand vehicles other than vehicles made in Russia, China and Iran, in which case max age is 8 years

Property appraisal

Pledged assets to be appraised by an appraising partner of the bank.

Additional security

Individual guarantees by founders/beneficial owners of businesses are a required condition. The Bank may request guarantees by other individuals and/or companies as additional security.

 

Insurance of property

The insurance of the pledged real estate is to be obtained only if it is or will be used for business purposes.
The insurance of real estate, vehicles and plant and equipment is maintained throughout the loan term:
1. If by the Client: at least for the amount of the outstanding principal/credit limit
2. If obtained by the bank: to the extent of the outstanding principal/credit limit.
The following vehicles are not subject to insurance:
• Vehicles transporting hazardous materials (toxic substances, chemicals, radioactive and explosive  materials)
• Vehicles to be used in races, test drives; vehicles which have three wheels, snow removers, motorcycles, special purpose vehicles
• Taxis and rental cars                

Loan service fees****

Modification of the loan terms

AMD 25,000

Substitution of pledged property (for real estate; including change of the property owner)  

AMD 20,000

Substitution of pledged property (for vehicles; including change of the owner of the pledged vehicles)

AMD 10,000

Provision of pledge-related consents, permissions and references

AMD 10,000 (VAT included)

Change of the loan repayment date

AMD 10,000

 

Other fees payable by client

1. Fee for the unified statement from the State Committee of the Real Estate Cadaster adjunct to the RA Government; fee for police reference on vehicles encumbrance
2. Notary fee for registration of pledged real estate; fee for state registration of the bank’s security interest under the real estate pledge agreement; Fee for the certificate of registration of the security interest in the vehicle

Early repayment

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

                     

*This facility can be provided either on a current bank account (overdraft) or on a special credit account (line of credit).

                     

**No creditworthiness ratios are calculated and no business analysis and proof of income are required for loans secured by cash and metal accounts in gold.

                     

***Geodetic measurement is required for any land other than fenced plots or grounds attached to house, if:
- Client has applied for a loan above AMD 50 million, and
- Share of credit limit to be secured by such land plot exceeds 30% of total available credit limit.  For the purposes of this document total available credit limit means the sum of all loan proceeds made available to client by decision of the bank’s authorized body within acceptable LTV ratio and subject to disbursement at the given moment.

 

 

 

 

 

 

 

 

 

 

 

****The fee is charged if the modification is requested by client. Where there are several applicable fees for the same modification, the highest fee is charged and only once. Fees are not applicable in case of loans secured by cash, bonds and metal accounts. If the modification implies adding new pledge or involving a new guarantor, no fee is charged. These fees do not apply to loans to agro-processing industry.