Make progress your business priority.
The loan is proposed in order to ensure adequate investments in your business.

Current terms are effective as of June 3, 2020, based on FINCA UCO CJSC Management Board resolution 54/2020, 27.05.2020

MAIN TERMS AND CONDITIONS
Currency AMD USD1
Loan amount 2,500,001 – 5,000,000 5,000,001 – 10,000,000 5,001 – 10,000 10,001 – 20,000
Loan maturity 6–60 months
Annual interest rate2 14.9% with collateral – 18%
without collateral – 20%
16% – 18%
Annual percentage rate2 23.4% – 39.3% 23.4% – 38.2% 20.8% – 35.5%
Service fee [monthly]3 0.3% 0.25%
Disbursement fee [one off]3 3.5%, maximum AMD 250,000 4.5%, minimum AMD 12,000
Disbursement method Cash, non cash
Loan purpose Financing operational and capital expenses, other business purposes
CUSTOMER REQUIREMENTS
  • 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 3 months of continuous business activity within FINCA’s service area.
  • 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.
MINIMUM REQUIREMENTS4 FOR LOAN SECURITY
AMD 2,500,001 – 5,000,000 /
USD 5,001 – 10,000
AMD 5,000,001 – 10,000,000 /
USD 10,001 – 20,000
  • Two financial guarantors, at least one of which is external5 or
  • One guarantor5 and liquid asset collateral of at least 50% of the loan amount6
  • One guarantor5 and liquid asset collateral of at least 50% of the loan amount6
LOAN REPAYMENT
  • The loan is repaid in equal monthly repayments consisting of the principal, interest and service fee.
  • Up to 6 months of grace period7 is available.
  • A flexible repayment schedule8 is allowed.
OTHER TERMS AND CONDITIONS
Disbursement in tranches Up to 3 tranches
Parallel loans Up to 3 parallel Business Progress loans with up to AMD 10,000,000 / USD 20,000 total amount
NOTES
  1. Foreign currency exchange rate variations may have an impact on loan repayment amounts.
  2. 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.
  3. Calculated with respect to the principal.
  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. Grace period — a period, during which no principal repayments are made.
  8. Flexible repayment schedule — a schedule that allows varying amounts of principal payment each month.
REQUIRED DOCUMENTS (to be submitted in person)

Individuals

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

Positive factors

  • Sufficient level of creditworthiness
  • Good credit history
  • Loan security

Negative factors

  • Insufficient level of creditworthiness
  • Bad credit history
  • Lack of loan security
  • Non-compliance with the set customer requirements
  • Other credit risks
TIMING
Loan application decision Up to 3 business days
Provision of a written or verbal notification on the decision Up to 1 business day
Loan disbursement Up to 9 business days after the submission of the application
OTHER NOTES
  • 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.
EARLY REPAYMENT
  • 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.
WARNINGS AND PENALTIES
  • 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:
where
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
CALCULATION EXAMPLE
Loan amount USD 12,000
Loan maturity 48 months
Annual interest rate 17%
Service fee 0.1%
Disbursement fee 3%
Loan repayment Equal monthly repayments
Appraisal of real estate pledged as collateral AMD 10,000
Provision of a unified certificate on the real estate unit AMD 10,000
Ratification of the pledge agreement AMD 20,000
Registration of pledge rights with respect to real estate AMD 25,000
Disbursement day 03 February 2020
First repayment date 03 March 2020
Annual percentage rate 23.4%
  • 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 www.fininfo.am.
  • 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:
Service STATE AGENCY OR COOPERATING ORGANIZATION PROVIDING THE SERVICES SERVICE FEE
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
VM RP LLC
Gardi LLC
Finlaw LLC
Depending on the type and size of the property, minimum AMD 5,000
 
 

NOTE:

  • 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.