Leasing of Agricultural Machinery

Agricultural machinery leasing support program in the Republic of Armenia

 

Description and purchase prices of leasing objects 

“Spetsmash”    LLC   /www.specmash.am/                   You can find the description and price of the agricultural machinery here

“Hrashq aygi”  LLC  /www.hrashkaygi.am/                  You can find the description and price of the agricultural machinery here

“AS GROUP”   LLC  /www.asgroup.am/                       You can find the description and price of the agricultural machinery here

“AR-BE”  LLC  /www.arbe.am/                                     You can find the description and price of the agricultural machinery here

“Motoblock” LLC  /www.motoblok.am/                       You can find the description and price of the agricultural machinery here

“Armen-Avet” LLC /www.agrotechnika.am/                 You can find the description and price of the agricultural machinery here

“Tractor Gtoup” LLC /www.agrotechnika.am/              You can find the description and price of the agricultural machinery here

“Vrej Baghdasaryan” PE /www.gyuxtexnika.am/          You can find the description and price of the agricultural machinery here

“Chinvan” LLC /www.traktor.am/                                  You can find the description and price of the agricultural machinery here

“Sitilianos Sidiropulos” PE                                             Contact Information – phone: +374 94 24-86-68, e-mail: sidtrade@hotmail.com

 

Beneficiaries

Individuals – legal entities, communities (if the subject of the lease is not intended to be acquired by subsidy programs), individual entrepreneurs․

 

Leasing items

The subject of leasing can be:

  • tractors of different brands,
  • combine harvesters,
  • other agricultural machinery.

 

The currency of the leasing

AMD

 

The total amount of leasing items

Up to 250 million AMD

 

Nominal interest rate as a result of state subsidy

0%:

  • For businessmen from border areas receiving social assistance,
  • For citizens who have become disabled as a result of military duty or operations while performing their military service duties.

2% for all other beneficiaries.

ATTENTION: THE INTEREST RATES OF LEASING ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE AND ANNUAL
PERCENTAGE RATE SHOWS COST OF LEASING WHEN INTEREST PAYMENTS AND OTHER CHARGES ARE PAID IN STATED
TIME AND IN STATED AMOUNTS. CALCULATION OF ANNUAL PERCENTAGE RATE YOU CAN FIND IN THE FOLLOWING LINK

 

Мaturity date

Leasing is provided

  • for combines for a period of 10 years of maturity,
  • for tractors for a period of 6 years of maturity,
  • for square balers and seeders for a period of  3-6 years of maturity,
  • for other agricultural machinery for a period of 3 years of maturity.

Moreover, in case of leasing tractors and other agricultural machinery to the same beneficiary at the same time, the period of leasing
can be set to 6 years.

 

Lease Payment Procedure

Rent payments are usually carried out in equal monthly annuity by the leaseholder. In some circumstances, considering the activity
characteristics, seasonality and other conditions, Development and Investments Corporation of Armenia may define break periods
(grace period) in which annuity accrued interest amounts are to be paid in the future by adding them to the fees. Besides, while drawing
up the schedule of fees it is set that after the provision of leasing fees are paid each year at least by 6 equal portions. Break periods are
defined starting from the fourth month of the provision of leasing. Leasing interest calculation example is presented here:LEASING

 

Possible cases and conditions of early lease payment

Early and full payment of the lease can be made at the request of the lessor or at the initiative of the lessee. In this case, the lessee is
obliged to pay the unpaid part of the capital in full, as well as the unpaid interest accrued according to the defined payment schedule
as of the next repayment date, taking into account the interest accrued as of the above repayment, which is added to the amounts to
be paid in the future.
If early payment is made during break periods, the nearest payment date and interest shall be calculated on the basis of the payment
schedule that would have occurred if there had been no break periods.

 

Deposit

20% of the purchase price of the leasing object

 

The subsidization of the leasing is stopped, if:

  • there are overdue liabilities of more than 90 days to the Corporation for one year (previous 12 months) or the leasing is not classified
    as a standard under current financial asset classification obligations due to overdue liabilities to the Corporation,
  • the subject of the lease is not used in accordance with its intended purpose or the rules of operation of the subject of leasing are not followed,
  • as a result of the monitoring, a violation of the terms of the program was found.

 

Security of leasing

Guarantees from individuals and legal entities can act as enforcement to the full implementation of the leasing contract, particularly in the case of
individual beneficiaries the guarantee should be given by at least two persons.

 

The transfer of ownership right of the leasing object

Leasing contract provides that the right of property of the leasing subject will be transferred from credit institution to the lessee
in the following cases and in order:

  • after the end of the lease term set by the leasing contract, if the lessee fulfills all the obligations stipulated in the lease contract,
    has paid all the bills that had to, as well as has paid the fee of the transfer of ownership,
  • until the end of the lease term set by the leasing contract, when the lessee has fully paid the outstanding balance of the capital,
    the calculated and non-calculated /that will later be added to the amounts payable/ interest payments of the maturity date established
    by the schedule of interest payments, fee of the  transfer of ownership as well as the planned charge in case of early repayment.

Ownership right transfer fee:

  • for tractors and combines- 5,000 (five thousand) AMD,
  • for attached equipment – 3,000 (three thousand) AMD.

 

Amounts payable to Development and Investments Corporation of Armenia for leasing

Service fee:

  • for a leasing object of up to 2 million AMD (inclusive) acquisition cost – 15,000 (fifteen thousand) AMD,
  • if the acquisition cost exceeds 2 million for leasing the subject, 20,000 (twenty thousand),

(moreover, the service fee may change depending on costs that the company makes on the examination of the loan application).

 

Insurance terms of the leasing object

Leasing object is insured for damage and loss risks for the entire period of the leasing contract. Insurance is carried out at the expense of credit organization.

 

Penalty

If the payment is not paid on schedule, a penalty is set on the overdue part of the payment in the amount of 0.125% for each calendar day till repayment of
the overdue liability.

WARNING: IN CASE OF NOT FULFILLING OR IMPROPERLY FULFILLING YOUR OBLIGATION, THE INFORMATION ABOUT YOUR DEBT
WILL BE SENT BY THE LENDER TO CREDIT BUREAU, WHERE YOUR CREDIT HISTORY IS CREATED. YOU HAVE THE RIGHT TO ACQUIRE
YOUR CREDIT HISTORY FREE OF CHARGE ONCE PER YEAR.

ATTENTION: HAVING A BAD CREDIT HISTORY CAN LATER HINDER OTHER LOANS.

 

Periods of decision-making for Lease Application

After the proper submission of required lease documents within three days an analysis is made and if the results of the analysis meet the internal leasing
regulations, the case is submitted to the competent authority for consideration. When the decision about the leasing application is made by the authority,
it is immediately submitted to the customer.

 

Criteria for a positive decision on leasing

Leasing factors include: the reasoning of the acquisition of the leasing object, the client’s financial situation, sufficient long-term liquidity, capability of
liability coverage, personal factors such as the client’s reliability and assertion of willingness to fulfill the obligations in time, abilities, experience, etc. The
factors to refuse the provision of leasing are: The insufficient level of the above mentioned indicators, as well as false documents, inaccuracy of the documents,
failure to submit the required documents, the negative information from credit register and / or from ACRA credit bureau, and other reasons.

 

Useful information

  • In case of non-fulfillment or improper fulfillment of the obligation by the Debtor, the Guarantor and the Debtor owe to the Lender a joint liability.
    The guarantor, under the guarantee agreement, is obliged to be liable on behalf of the creditor for the full or partial fulfillment of his obligation by the latter.
    The Guarantor shall be liable to the Creditor with all the property belonging to him in the same amount as the Debtor, including principal, interest
    (term and overdue), other payments stipulated in the Contract, court costs for confiscation of debt, and other damages resulting from non-fulfillment or
    improper performance. In case of non-fulfillment of the debtor’s obligation, the credit history of the Guarantor will deteriorate, information on the Guarantor’s
    liability, its size, and the Guarantor will be provided to the Credit Registry and Credit Bureau. The rights of the creditor under that obligation pass to the guarantor
    who has fulfilled the obligation and the rights belonging to the creditor as a pledgee to the extent that the guarantor has satisfied the creditor’s claim. The guarantor
    also has the right to demand from the debtor the compensation of the interest paid to the creditor and, in connection with the liability on behalf of the debtor, other
    damages incurred by him.
  • In case of necessity to change significant conditions (interest rate, commission, penalty, term, volume of liability) which will increase the liability of the guarantor
    or cause other adverse consequences, the guarantor shall be notified in advance (7 days before the change). the mentioned change is made in accordance with the
    procedure pre-selected by the guarantor, and in case of the latter’s consent, the mentioned change is made.
  • The customer has the right to communicate by mail or e-mail.

 

The conditions of guarantee set by “Armenia SME DNC” for financial leasing of agricultural machinery in Credit organization in 2013.

Cooperation agreement of implementing warranty service of tractors

Cooperation agreement of implementing warranty service of combine-harvesters

List of documents required for the study of the leasing application.

 

ATTENTION: IN ORDER TO APPLY FOR A LOAN, THE LENDER WILL PROVIDE YOU AN INDIVIDUAL CONSUMER LOAN TERM SHEET, WHICH
WILL PRESENT THE INDIVIDUAL TERMS OF THE LOAN OFFERED TO YOU.

 

Your financial directory: Agricultural loans

ATTENTION: “YOUR FINANCIAL DIRECTORY” IS AN ELECTRONIC SYSTEM MAKING IT EASIER TO SEARCH, COMPARE AND SELECT THE MOST
EFFECTIVE OPTION AMONG SERVICES FOR INDIVIDUALS.

 

Archive of characteristics of agricultural machinery and purchase prices:

Price list of agricultural machinery offered by “Hrashq Aygi” LLC from 04.09.2017 to 17.05.2018.

Price list of agricultural machinery offered by “Hrashq Aygi” LLC from 29.06.2017 to 04.09.2017.

Price list of agricultural machinery offered by “Hrashq Aygi” LLC from 04.04.2017 to 29.06.2017.

Price list of agricultural machinery offered by “SPETSMASH” LLC from 06.05.2017 to 01.02.2018.

Price list of agricultural machinery offered by “SPETSMASH” LLC from 01.02.2018 to 01.06.2018.

Price list of agricultural machinery offered by “SPETSMASH” LLC from 01.06.2018 to 01.09.2018.

Price list of agricultural machinery offered by “SPETSMASH” LLC from 01.09.2018 to 01.02.2019.

Price list of agricultural machinery offered by “SPETSMASH” LLC from 01.02.2019 to 27.03.2019.

Price list of agricultural machinery offered by “SPETSMASH” LLC from 27.03.2019 to 16.04.2019.

Price list of agricultural machinery offered by “SPETSMASH” LLC from 16.04.2019 to 18.09.2019.

Last update 23.06.2022 16:41