Business Program Loan


A beneficial opportunity in cooperation with the German-Armenian Fund for individuals and legal entities engaged in agricultural business.


AMD 1,000,000 – 75,000,000




12-60 months


Loan Application


Our Benefits

  • Predominance of loans without collateral

  • Completing a loan application at a place convenient for the customer trough a visit from our specialist

  • Quick decision-making

  • Flexible loan repayment schedule

  • Individual approach to each client


About the Loan

Purpose Financing of capital expenses, as well as capital and operational expenses
Loan currency AMD
Loan amount 2,500,000 – 75,000,000
Loan maturity 12–60 months
Loan annual interest rate1 14.25%
Loan annual percentage rate1 13.4%
Loan service fee [monthly] 0%
Loan disbursement fee [one off] 0%
Loan disbursement method Cash, non cash
  • Legal entities and sole entrepreneurs registered in RA and engaged in business.
  • Age: 21+; the sum of the client’s age at the time of applying and the expected loan period should not exceed 70 years.
  • Residence and at least 6 months of continuous business activity within FINCA’s service area. This condition does not apply to start-up businesses2, where the total cost of the funded project doesn’t exceed AMD 5,0 million. In this case, the loans can be provided based on future cash flow analysis and/or other periodic income (for example, monthly salary).
  • Loan coverage ratio (ratio of customer’s spare means and monthly repayment of the requested loan) minimum of 1.53.
  • Capital adequacy ratio (ratio of capital and sum of assets and requested loan) minimum of 0.43.
  • Compliance with FINCA’s social and environmental requirements.
  • Borrowers should act on their behalf and for their benefit; taking a loan on behalf of a third person is prohibited.
  • Assessment of creditworthiness
  • Source of stable income
AMD 2,500,001 – 5,000,000 AMD 5,000,001 – 75,000,000
  • Two guarantors5
  • One guarantor5 and liquid asset collateral of at least 50% of the loan amount6
One guarantor5 and liquid asset6 collateral

  • In case of real estate, the maximum loan / collateral ratio is up to 80% of the appraised value
  • In case of a vehicle, the maximum loan / collateral ratio is up to 60% of the appraised value
  • In case of agricultural machinery, the maximum loan / collateral ratio is up to 70% of the appraised value
  • In case of working capital inventories, the maximum loan / collateral ratio is up to 50% of the appraised value
  • In case of other collateral, the maximum loan / collateral ratio is up to 50% of the appraised value
The loan can be provided to more than one borrower (co-borrower), in which case the requirements for the borrower also apply to the co-borrower.
  • The loan is repaid in equal monthly repayments consisting of the principal, interest and service fee (if applicable).
  • A flexible repayment schedule7 is allowed.
  • Up to 9 months of grace period8 is available
Loan disbursement in tranches9 Up to 5 tranches, the amount of each tranche cannot be less than AMD 1,000,000.
Changes in loan terms Within 7 working days from the moment of notification of the refusal of the loan refinancing or withdrawal of the loan after refinancing by the Central Bank of the RA, a new loan agreement has to be signed for the refinancing of the loan within the terms defined for the current agricultural loans in AMD. And in case of not signing a new loan agreement within the stipulated period, the annual interest rate defined by the current contract is set to 14.9%, as well as a monthly service fee is set at 0.90% of the loan balance as of the date of change. There will be no recalculation in regards to early repayments made before the amended schedule takes effect.
  1. The loan interest is calculated with respect to the outstanding amount, based on the annual interest rate. Whereas, the annual percentage rate (APR) shows the cost of the loan if the interest and all other required fees are duly paid according to the repayment schedule. The APR calculation is described in the Annual Percentage Rate section of this page.
  2. A start-up business is considered to be a case when the potential beneficiary has not had any other active business in the previous 6 months.
  3. Deviations from the defined capital adequacy and loan coverage ratios are approved in accordance with the Company’s internal legal acts.
  4. The credit committee can require additional loan security: guarantee or collateral.
  5. For individuals, guarantors can be internal — family members, or external — other people. In case there are only external guarantors, a member of the borrower’s family — if the borrower is married, then their spouse — should be registered as an affiliated person. Financial guarantors should have a stable income or liquid assets (real estate, a vehicle or agricultural machinery with state registration) comparable to the loan amount. In case of legal entities guarantee of shareholders is required.
  6. Liquid asset collateral — state registered agricultural machinery, a vehicle, real estate. There is no need to insure the collateral.
  7. Flexible repayment schedule — a schedule that allows varying amounts of principal payment each month.
  8. Grace period — a period, during which no principal repayments are made.
  9. Tranche — a total loan is approved by signing one loan agreement, however, the disbursement is made in parts, subject to the pre-established conditions for each tranche. If the loan is approved in tranches, the collateral agreement can be signed for the full amount of the loan, or separately for each tranche. One or more of the tranches may be provided in the form of a new loan with current FINCA rates. Maximum disbursement period between the first and last tranche – 6 months.
REQUIRED DOCUMENTS (to be submitted in person)

Individual entrepreneur

  • ID cards of the borrower and the guarantors or their passports and social security cards
  • Certificate of State Registration
  • Other documents upon request

Legal entities

  • Certificate of State Registration, director insert
  • ID cards of the director, shareholders and guarantors or their passports and social security cards
  • Copies of the state registration certificate, charter and tax code of the participants of the legal entity.
  • Other documents upon request

Positive factors

  • Sufficient level of creditworthiness
  • Good credit history
  • Income from the business repaying the loan

Negative factors

  • Insufficient level of creditworthiness
  • Bad credit history
  • Lack of loan
  • Non-compliance with the set customer requirements
  • Provision of false or untrustworthy information
  • Other credit risks
Loan application decision Up to 3 business days
Provision of a written or verbal notification on the decision Up to 1 business day
The credit committee decision validity period Up to 15 business days
  • The borrower can apply for the loan in all FINCA branches.
  • Before signing the contract you will receive an individual sheet which will show your individual loan terms.
  • The borrower can repay the loan earlier than stipulated by the payment schedule without incurring penalties. Upon early repayment, together with the reduction of the principal, the borrower’s total credit expenses (interest, other fees) are reduced proportionally, except for the cases when the payer submits a different written order. Penalties and other fees incurred as a result of failure to properly fulfill obligations stipulated by the RA legislation and the loan contract, as well as the fees defined by the Article 15 of the RA Law on Consumer Credit are not reduced. Upon full early repayment of the loan, the borrower pays the service fees and other charges, interest and principal amounts calculated as of the payment date.
  • Payments for future months can be made in advance by submitting a written order. Repayments for each upcoming month are made in the following order: 1) service fees and other charges, 2) interest, 3) principal.
  • In case the borrower breaches the contractual obligations, FINCA may change the interest rate of the loan following the order provided by the contract and the terms constituting an integral part of the contract.
  • In case of failure to fulfill the contractual obligations according to the payment schedule, the borrower is obligated to pay a PENALTY for each overdue day in the amount of: 1) 0.13% of the overdue principal, 2) 0.13% of the overdue interest.
  • If the borrower fails to repay the principal on time, application of the contractual interest rate towards the overdue amount is terminated and a 24% annual interest rate is applied from the day of breaching the schedule till the loan repayment date. If the amount paid is not sufficient to cover all overdue obligations, the creditor’s expenses incurred in efforts to receive the due payments from the borrower are paid first, followed by the service fees, penalties, interest and principal. This order may change per the creditor’s decision based on the borrower’s written request.
  • In case of failing to fulfill your loan obligations, this information is sent to the credit bureau where your credit history is formed. Bad credit history can prevent you from receiving a new loan in the future.
  • In case of not fulfilling your loan obligations on time, your property may be confiscated in accordance with the law.
  • If the collateral is insufficient to cover loan obligations when repaying them at the expense of the collateral, payments are made at the expense of your other property.
The annual percentage rate calculation is based on the following formula:
A – the initial loan amount
n – the sequence number of the installment for loan repayment
N – the sequence number of the last installment for loan repayment
Kn – the amount of the nth installment for loan repayment
Dn – the number of days between the loan disbursement date and the date of the nth installment for loan repayment
i – the annual percentage rate
Loan amount AMD 2,500,000
Loan maturity 36 months
Loan annual interest rate 13.4%
Loan service fee 0%
Loan disbursement fee 0%
Loan repayment 3 months of grace period from the beginning of term
Loan disbursement day 02 June 2022
Loan first repayment date 02 July 2022
Loan annual percentage rate 14.25%
  • In the cases and according to the order provided by the contract and the terms constituting an integral part of the contract, FINCA has a right to unilaterally change the interest rate of the loan by up to +5 percentage points but not more than twice the bank reference rate set by the Central Bank of Armenia. The borrower should be notified about the change 7 business days prior to its entry into force.
  • Loan statements provided on the spot; other information is provided within 10 business days upon request. Provision of statements and other information is free of charge.
  • You can communicate with FINCA by using the channel of your preference: either postal services or electronic communication. It is more convenient to obtain information electronically as it is free of the risk of losing information on paper.
  • To compare the loan types offered to individuals and to choose the most suitable option, you can visit the electronic platform Your Financial Directory at
  • When pledging property as collateral for a loan, a need to use third party services arises. The prices of those services and the respective service providers are presented below:
Ratification of the pledge agreement Notary Offices of the RA AMD 3,000 – 20,000
Registration of pledge rights with respect to real estate Cadastre Committee of the RA AMD 3,000 – 30,000
Provision of a unified certificate on the real estate unit Cadastre Committee of the RA AMD 500 – 10 000
Registration of pledge rights with respect to agricultural machinery The Ministry of Justice of the RA AMD 2,000
Registration of pledge rights with respect to vehicles Records and Examinations Divisions of the Road Police Service of the RA Police AMD 2,000
Provision of a certificate on limitations with respect to vehicle alienation Records and Examinations Divisions of the Road Police Service of the RA Police AMD 3,000
Bank transfer (transfer of service fees) RA banks AMD 300 per transfer
Independent appraisal of real estate pledged as collateral Cost Consult LLC
Oliver Group LLC
A.G. Borsa LLC
Gardi LLC
Finlaw LLC
Depending on the type and size of the property, minimum AMD 5,000

a) consumer loans,

b) loans intended for purchase or renovation of residential real estate

c) loans provided by the government for the acquisition of land to be alienated for state needs

d) loans to non-private stakeholders (stakeholders with less than 50% share of RA resident private owners)

e) loans related to currency speculation and speculative stock

f) loans provided to repay the borrowers’ other credit obligations

g) pawn loans or all loans that are provided only on the basis of collateral (sub-loans must be provided based on financial analysis of at least the previous 6 months of business activity (agricultural and/or other field))

h) loans related to the activities listed in IFC’s exclusion list

i) revolving credit lines

Current terms are effective as of June 06, 2022, based on FINCA UCO CJSC Management Board resolution 61/2022, 03.06.2022



  • Additional Service Fees
  • FINCA UCO is regulated by the Central Bank of Armenia
  • To search and compare the services offered by financial institutions of the RA, you can visit the Fininfo electronic platform