Leasing provided within the framework of the agri-food equipment leasing support program in the Republic of Armenia
Beneficiaries
Sole proprietors and legal entities, including agricultural cooperatives.
Leasing items
Within the program framework, the leasing agreement provides business entities with equipment used in the following areas:
- animal breeding, including breeding of cattle, sheep, pigs, poultry, bees, fish, snails, industrial fur farming,
- crop production, including greenhouses,
- refrigeration facilities, including milk storage stations and isothermal cisterns for milk transportation,
- operation of sorting and packaging of fresh fruits, vegetables, and grass-and-legumes,
and refining of grass-and-legumes, - slaughterhouse activity, mobile and portable modular slaughterhouses, as well as transportation means for transfer of carcass meat purchased by the slaughterhouse service provider,
- agro-processing industry,
- other activities in agri-food industry․
In addition to the equipment used in these areas, the project will provide businesses with cranes and fixed assets, metal storage containers, and oak containers used in the wine industry.
Leasing currency
AMD
USD
The total amount of leasing items
- Up to 1 billion AMD or equivalent foreign currency
- Up to 200 million AMD or equivalent foreign currency, for equipment in the areas of activity referred to in paragraphs “d” and “e”.
The cost of the leasing object includes the price of obtaining the leasing object, the cost of importing the leasing object to the Republic of Armenia (transportation, including other costs connected with the transportation, custom clearance, value added tax, etc.).
The equipment should be purchased from the manufacturers and (or) from the retailer, which will provide warranty and (or) post-warranty service of the equipment, or will do it through a resident legal entity of the Republic of Armenia guaranteed by them.
Interest rate
10 percentage points of leasing provided in AMD, 6 percentage points of leasing provided in foreign currency are subsidized.
12 percentage points of leasing provided in AMD, 7 percentage points of leasing provided in foreign currency are subsidized for economic entities operating in the territory of settlements of border communities receiving social support, determined by the Decree of the Government of the Republic of Armenia No. 1444-N dated 18- th December 2014, if the purchased equipment will be used in the same territories.
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
Leasing is provided for up to 5 years.
Lease Payment Procedure
The term of the grace period in relation to the principal debt is set for a maximum of 3 months from the date of granting the lease, and the obligation of the lessee to pay unsubsidized interest arises from the date of granting the lease. In addition, at the request of the lessee, break periods can be established in relation to the principal debt for up to 6 months.
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.
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.
ATTENTION: IN CASE OF NOT FULFILLING OR IMPROPERLY FULFILLING YOUR OBLIGATION, THE INFORMATION ABOUT YOUR DEBT WILL BE SENT BY THE LENDER TO CREDIT BUREAU WITHIN 3 WORKING DAYS AFTER THE
DELAY, 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.
Terms of making a decision on loan application and providing the loan to the borrower
After proper submission of the necessary documents for obtaining a lease, an analysis is carried out within seven days and, if the results comply with the requirements of internal legal acts, the case is submitted to the competent authority for consideration. After a decision on a leasing application is made, it is immediately submitted to the client.
Criteria of making a positive or negative decision on providing the loan
To provide leasing, justifications are needed on the need to purchase the leased asset, the client’s financial state, acceptable long-term liquidity, the availability of funds to ensure the fulfillment of obligations, personal factors, such as the client’s reliability and confirmation of readiness to fulfill obligations on time, experience, etc.
The factors for refusing to grant leasing are: insufficient level of the above indicators, as well as unrealistic project description, unreliable documents, failure to submit required documents, negative information from the credit register/or 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.
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 INFORMANT” IS AN ELECTRONIC SYSTEM MAKING IT EASIER TO SEARCH, COMPARE AND SELECT THE MOST EFFECTIVE OPTION AMONG SERVICES FOR INDIVIDUALS.