Agricultural loan – Collateral free

Accelerate Your Agricultural Success

FINCA’s agricultural loans are for individuals who do not have collateral, but need funds to develop their farms.

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Loan Repayments Designed for You

Tailor your repayments with two or three annual installments that align with your farming.

You can contact us by phone by calling and receive the necessary consultation.

012 555555

Personalized Approach and Flexible Terms
Financing is provided based on the borrower’s financial capacity, income sources, and preferred repayment terms.
Flexible repayment
Transform your farm with a cost-effective solution for your agricultural needs, featuring a 9-month grace period.
Loan Limit
Unlock the potential of your farm with loan amounts of up to AMD 5,500,000 or $10,000.
Hassle-Free Process:
Obtain your loan without the complications of a business registration certificate.
Transparency
All terms are fully transparent, with no hidden fees.
Speed and Simplicity
Minimal documentation requirements and fast approval process.
Accessibility:
With branches across different regions of Armenia, we are available where you need us most.

Loan Calculator

* The following calculation is informative and may change slightly.

Apply Online

Applying for a loan with us is a straightforward and convenient process.

1

Receive a Call
Our operator will call you within 15 minutes to confirm the details.
2

Apply Online
Fill in our easy online application form.
3

Approval & Disbursement
Upon visiting the nearest FINCA branch, your loan will be approved within 5 business days.

Start your application

Applying for a loan with us is a straightforward and convenient process.

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About the Loan

Terms and Conditions

Main terms and conditions
Loan currency¹	AMD	USD
Program	Financing fixed and working capital for business
Loan amount	300 001 – 5 500 000	800 – 11 500
Loan maturity²	12–48 months
Loan annual interest rate	17%	14%
Loan annual percentage rate³	33.74%-38.18%	31.08%-33․94%
Loan service fee [monthly]⁴	1,2%
Loan disbursement fee [one off]	0%
Loan disbursement method	non cash⁵

Requirements for the borrower/co-borrower(s)[t5[
1. Registered in the Republic of Armenia as an individual engaged in agriculture. 2. Age: 21 and above for applicants. Additionally, the combined total of the applicant’s age at the time of application and the expected loan term should not exceed 70 throughout the entire loan duration, unless otherwise specified by the Credit Committee. This requirement also applies to guarantors 3. Debt Service Ratio: Minimum 1.5, unless otherwise specified by the Credit Committee. 4. Capital Adequacy Ratio: Minimum 0.4, unless otherwise specified by the Credit Committee. 5. Residence and at least 3 months of continuous business activity within FINCA’s service area. 6. Compliance with FINCA’s social and environmental requirements is necessary. 7. Borrower Responsibility: Borrowers should act on their behalf and for their benefit; taking a loan on behalf of a third person is prohibited. 8. Co-Borrower Option: The loan can be provided to more than one borrower (co-borrower), in which case the requirements set for the borrower are also extended to the co-borrower.

Minimum requirements for securing a credit⁴
Credit rating
A stable source of income
Up to 1,000,000 AMD and 2,000 USD	1 000 001 – 2 500 000 dram RA and 2 001 – 5 000 US dollar	2 500 001 – 5 500 000 dram RA and 5 001 – 10 000 US dollar
Not required⁶	One guarantor⁶	Two guarantors⁶
The credit committee may make other collateral requirements.

Loan repayment
The loan is repaid through equal monthly installments consisting of the principal amount, interest (if applicable), and service fee. Within every 12-month period, a grace period⁷ of up to 9 months is available. The total number of consecutive grace periods shall not exceed 9 throughout the entire loan term. For loans ranging from AMD 1,000,001 to AMD 5,500,000 or USD 2,001 to USD 11,500, it is possible to benefit from a zero-payment grace period, during which repayments may be made every 6 or 4 months. However, at least one principal repayment must be made within the first 12 months. A flexible repayment⁸ schedule is allowed. The borrower may repay the loan early, in full or in part, without incurring a penalty. In the case of early repayment, together with the principal amount, the borrower’s total credit cost (interest and other fees) is proportionally reduced, except in cases where the payer provides other written instructions. Penalties and other payments stipulated by the laws of the Republic of Armenia and the agreement for non-performance or improper performance of obligations, as well as the payments defined by Article 15 of the RA Law “On Consumer Credit,” are not subject to reduction. When fully repaying the loan early, the borrower shall pay, as of that day, the calculated service and other fees, interest, and principal amount. Future monthly payments may be made in advance by submitting a written instruction. Each future monthly repayment shall be made in the following order: service and other fees, interest, principal amount.

Other terms and conditions
Loan disbursement in tranches⁹		Up to 2 tranches
Parallel loans		AMD 5,000,000 or the equivalent in US dollars (the maximum amount of the total liability for business loans: the number is not limited)

Notes
Changes in the foreign exchange rate may affect loan repayments. Based on the loan repayment schedule, the loan term may be extended for a maximum of up to 45 days. The Annual Percentage Rate (APR) shows the cost of the loan if all interest payments and other mandatory charges related to the loan disbursement are made in accordance with the established procedure. The calculation method of the APR is presented below and is determined based on the client’s creditworthiness assessment. It is calculated on the remaining balance of the loan principal. The loan amount is transferred to the client’s bank account. The borrower’s guarantor may be internal (a family member) or external (another person). If there is only an external guarantor, the borrower’s family member — in the case of a married borrower, the spouse — is registered as a connected person. Grace period — a period during which no payments of loan interest (or other fees) and principal are made, or only interest (or other fees) are paid. Grace repayment — repayment consisting only of interest and service fees (if applicable). Flexible repayment schedule — a schedule in which the amount of principal repayment may vary each month. Tranche — the loan is approved under a single loan agreement, but the disbursement is made in parts (tranches) after fulfilling the pre-approved conditions for each tranche. One or two tranches may be disbursed as a new loan at FINCA’s prevailing rates at that time. When approving a loan in tranches, the collateral agreement may be executed for the total loan amount or separately for each tranche. The maximum period between the first and the last tranche disbursement is 6 months.

Provisioning Process

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	Additional Documents confirming the client’s income, Other documents upon request (including based on the “Know Your Customer” principle). Documents are submitted in paper form at the time of submitting an application for a loan or within three days after that.

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

Additional

Documents confirming the client’s income, Other documents upon request (including based on the “Know Your Customer” principle).
Documents are submitted in paper form at the time of submitting an application for a loan or within three days after that.

Factors Influencing The Loan Decision
Positive factors Sufficient level of creditworthiness Good credit history Availability of stable income	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 Non-compliance with the requirements presented to the borrower

Factors Influencing The Loan Decision

Positive factors

Sufficient level of creditworthiness
Good credit history
Availability of stable income

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
Non-compliance with the requirements presented to the borrower

Timing
Loan application decision		Up to 3 business days
Written or oral notification of the positive decision to the applicant		Up to 1 business day
Written (paper or electronic) and verbal notification to the applicant about the negative decision		Up to 2 business day
Loan disbursement		Up to 20 business days after the submission of the application
Term of validity of credit committee’s decision		Up to 15 business day

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.

Important Notices

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.

Annual Percentage Rate

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
K_n – the amount of the n^th installment for loan repayment
D_n – the number of days between the loan disbursement date and the date of the n^th installment for loan repayment
i – the annual percentage rate

Calculation Example
Loan amount		AMD 5,000,000
Loan maturity		48 months
Loan annual interest rate		17%
Loan Repayment		48 months equal monthly repayments 6 months grace period
Loan disbursement day		20 June 2025
Loan first repayment date		21 July, 2025
Loan annual percentage rate		36․29%

General Terms

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

The terms are effective from September 6, 2024, according to Decision No. 108/2024 of the Executive Board of “FINCA” UCO CJSC dated September 4, 2024.

Note

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.
Credit history and score

Customer Success

“For years, I harbored the ambition to venture into agriculture, particularly to establish greenhouses. However, this undertaking demanded a considerable financial investment. While exploring loan options in various banks, most necessitated proof of income or collateral. It was then that I stumbled upon FINCA’s agricultural loan, which required no collateral, offered a flexible repayment schedule, and boasted a swift approval process. Opting for this loan type proved to be a significant success. It finally empowered me to embark on the pursuit I had longed for—my cherished occupation. I am confident that this endeavor will elevate my family’s quality of life.” – Qanaqara.