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Boost your business by increasing the working capital through our loan facility.
The loan disbursement fee is 1% of the loan amount, with a minimum of AMD 35,000 and a maximum of AMD 250,000.
Annual nominal interest rate:
Against real estate collateral: From 12%, fixed for the first 3 years.
For the remaining years – Bank base rate * +5% annually reviewed.
Against real estate collateral: From 9%, fixed for the first 3 years.
For the remaining years – Bank base rate * +5% annually reviewed.
Against real estate collateral: From 7%, fixed for the first 3 years.
For the remaining years – Bank base rate * +7% annually reviewed.
*The base rate is determined by the Bank for different currencies and reflects the average weighted yield for the Bank's interest bearing liabilities.
The nominal interest rate of this loan might be changed by the Bank.
Depending on the results of the risk assessment conducted by the Bank, the loan application may be approved at a higher interest rate or with an advance payment.
If the loan is granted in USD and EUR, the exchange rate fluctuation may have a certain influence on loan repayment.
- In case of early repayment of the term loan (full or partial) during the interest fixed period, a 5% penalty on the early repaid amount will be applied.
- In case of payment delay, loan interest rate defined by the loan agreement shall not be applied on the overdue loan and the Bank will apply 24% annual interest rate to the amount owed by the Customer for every due day. Overdue amounts shall be the amounts not paid within the timeframe set by the loan agreement.
- The borrower must be a resident of Armenia, aged above 21, while an IE must be a resident of
Armenia, aged 21-63 (during the validity of the loan agreement).
- The borrower must provide real estate and/or public property (to increase working capital, acquire equipment, purchase, renovate or build commercial space,) or vehicle (vehicle acquisition) as collateral for the loan.
- Small Business Loan is provided to private entrepreneurs, limited liability open and closed joint-stock companies, where the number of employees does not exceed 49.
- The annual turnover should be equal to or over AMD 50 million (or $50,000, or €50,000).
- The business must be in operation for at least 2 accounting years (profitable for the past 1 year).
- The loan / collateral ratio is calculated based on the acquisition of the property or the estimated minimum market value.
- When purchasing public property, in case of pledging additional real estate, the loan financing can reach up to 100%, maintaining the loan/collateral ratio of 70% in case of AMD and 65% in foreign currency.
- Unsecured loans are provided in case turnover is transferred to Byblos Bank Armenia. The loan amount can be up to 10% of the annual turnover, but not more than $50,000 (or AMD 50 million, or €50,000).
- The collateral is pledged to the Bank until the full repayment of the loan.
- Beneficiary right of the insurance policy must be entitled to the Bank until full repayment of the loan.
- The real estate pledge agreement must be notarized, and the rights arising from it are subject to registration with the competent state body of the Republic of Armenia.
- The Bank cooperates with insurance companieslistedhere.
- The Bank cooperates with appraisal agencies listed here.
To guarantors (upon such a requirement)
- If the Borrower defaults on their loan, the Guarantor is liable for the outstanding obligation, which could damage the latter’s credit history and expose them to the risk of losing the property.
- The Guarantor will be provided with a copy of the loan and guaranty agreement and the repayment schedule.
- Communication is carried out in a manner convenient for the Guarantor.
- The Bank is obliged to notify the Guarantor about the change in the terms of the contract seven days in advance.
- The Bank is obliged to remind the Guarantor about the existing obligation one day in advance and inform them about the delay in repayment of the loan no later than one day later.
- The Guarantor may request information about the amount of the loan balance from the Bank at any time.
- The Guarantor may get back from the Borrower the money they paid for the loan, as well as other losses incurred on behalf of the Borrower.
I=Interest amount
R=Current interest rate
L=Outstanding loan amount
N=Number of days between two payments
- Example:
R=11.5%
L=6,000,000
N=30
I=6,000,000*11,5%/360*30=57,500
In case of collateral, valuation and pledge costs are borne by the borrower and are as follows:
Property
a - Collateral appraisal fee AMD – 15,000-60,000
b - Notarial fees AMD – 15,000-25,000
c - Pledge registration fee – AMD 26,400-72,000
d - Cadastre unified statement fee – AMD 10,300
Vehicle
a - Fee for statement on encumbrances over the car – AMD 3,000
b - Pledge registration fee – AMD 2,000
c - Collateral insurance rate – 2,5 % of the appraised value of the pledged property annually during the whole tenor of the loan.
- The loan is only processed at Byblos Bank Armenia branches.
- The loan is disbursed by a non-cash transfer to the client's bank account.
- The loan disbursement is executed within a maximum period of 3 working days from the date of signing the loan contracts by the client at the branch if all mandatory documents are provided.
- The repayment of the loan shall be made in equal monthly instalments whereas the interest accrued at the date of repayment shall be repaid first then the principal. In case there are penalties, those will be repaid first.
- The main factors affecting the decision to approve or reject the loan are as follows:
a - Credit history
b - Valid justification for the loan purpose
c - Accuracy of information, provided by the borrower
d - Solvency of the client (financial position)
e - Creditworthiness of the client (personal qualities absence of any legal impediment)
f - Type of security.
Byblos Bank Armenia will provide a decision on the loan application within 7 working days.
- In case of non-fulfillment or improper fulfillment of credit obligations by the Borrower, the Bank shall be entitled to receive a reimbursement at the expense of security funds provided for in the credit agreement and other property of the Client, in accordance with the Armenian legislation. The Bank shall be entitled to foreclose the mortgaged property via in- and out-of-court proceedings. In case of payment delay, the Bank may update the Borrower’s profile in Credit Register and Credit Bureaus of the Central Bank of Armenia, which can leave a negative impact on the Borrower’s credit history.
- According to the law of the RA “On Combating Money Laundering and Terrorism Financing” and for the proper investigation of the client’s
profile, the Bank can obtain additional documents or other information as per the Know Your Customer principle, as
well as ask the client additional questions during verbal communication (if need be).
- According to an agreement with the United States of America regarding the Foreign Account Tax Compliance Act (FATCA), the Bank may request or gather additional information in order to identify the Borrower’s status as a U.S. taxpayer.
- After signing the loan contract you may communicate with the Bank at your choice by post or e-mail. The most convenient way for information receipt is the e-mail. It is available 24/7, risk of information loss is eliminated and ensures secrecy.
| Title | ֏ |
|---|---|
|
Mortgage related consents*
|
5,000
|
|
Consent for secondary mortgage*
|
5,000
|
|
Consent for change of vehicle reg. plate*
|
5,000
|
|
Consent for change of vehicle reg. certificate*
|
5,000
|
|
Consent for change of mortgage*
|
5,000
|
|
Consent for registration or removal of family members*
|
1,000
|
|
Release of a mortgage (not applicable in case of full premature repayment)*
|
5,000
|
|
Consent for the change of the property certificate*
|
5,000
|
|
Fee for obtaining an electronic statement on complete information about Legal entity from the registry of Legal entities*
|
5,000
|
|
|
|
|
* VAT included
|
|
Important notice: The fees are applicable for each item of collateral.
Extracts and references are provided at the following rate:
| Title | ֏ |
|---|---|
|
Provision of statement monthly
|
Free of charge
|
|
Provision of statement duplicate up to 6 months*
|
3,000
|
|
Provision of statement duplicate over 6 months*
|
6,000
|
|
Certificate of balance related to loans*
|
3,000
|
|
|
|
|
* VAT included
|
|
