Agricultural loan with collateral

Expand your farm with a flexible loan

Get a loan that fits your plans and helps you reach your goals.

Securing Growth: Agricultural Loans with Collateral

Embrace the most affordable option to meet your farming needs with a nine-month grace period each year.

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

  • Individual Approach and Flexibility: Benefit from a grace period of up to 9 months each year throughout the loan term.

  • Extensive Loan Maximums: Unlock your farming potential with support of up to AMD 60,000,000 or $150,000, empowering your growth.

  • Trustworthy Financing: Experience freedom and flexibility with no annual interest rates, disbursement fees, or early repayment penalties.

  • Speed and Simplicity: Access funds conveniently with a streamlined process, eliminating paperwork hassles and unnecessary branch visits.

  • Transparency and Simple Lending: Redefine farming with ease through loans featuring two or three annual installments tailored to align with your agricultural seasons.

  • Hassle-Free Process: No Business Registration Certificate required, simplifying the fund disbursement process.

  • Accessibility: With a network spanning across Armenia’s 30 regions, every village and community has easy access to FINCA branches.

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* The following calculation is informative and may change slightly.

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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.

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


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About the Loan

Main terms and conditions
Loan currency1AMDUSD
ProgramFinancing of fixed and working capital for agriculture
Loan amount1 000 000 – 60 000 0002 000 – 150 000
Loan maturity212–60 months12–60 months
Loan annual interest rate117%12%
Loan annual percentage rate331.15%-34.75% 28.39%-31.25%
Loan service fee [monthly]41%1,20%
Loan disbursement fee [one off]20%
Loan disbursement methodnon cash5
Requirements for the borrower/co-borrower(s)

1. Registered in the Republic of Armenia as an individual engaged in agriculture.
2. Age requirement: Applicants must be 21 and over. Additionally, the combined total of the applicant’s age at the time of application and the expected term of the loan should not exceed 70 throughout the entire term of the loan, unless otherwise required by the Credit Committee. This requirement also applies to guarantors.
3. Debt service ratio: Minimum of 1.5, unless otherwise specified by the Credit Committee.
4. Capital adequacy ratio: Minimum requirement is 0.4, unless otherwise specified by the Credit Committee.
5. Residence and Business Activity: Applicants must reside within FINCA’s service area and have at least 3 months of continuous business activity within the same area.
6. Compliance with FINCA’s social and environmental requirements is necessary.
7. B7Borrower 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 credit

Credit rating

A stable source of income

Availability of a guarantor6 (if necessary, by the decision of the Credit Committee)

Maximum Loan-to-Value Ratios for Various Collateral Types

  • Real Estate: Up to a maximum of 80% of the estimated cost.
  • Vehicle: Up to a maximum of 60% of the estimated cost.
  • Agricultural Machinery: Up to a maximum of 70% of the estimated cost.
  • Current Assets: Up to 50% of the estimated value.
  • Other Collateral: Up to 50% of the appraised value.
Loan repayment
  • The loan is repaid in equal monthly installments comprising the principal amount, interest (if applicable), and service fee.
  • A grace period of up to 9 months is available every 12 months. The number of consecutive preferential repayments should not exceed 9 throughout the term of the loan. For loans ranging from 1,000,001 to 5,000,000 AMD or 2,001 to 10,000 US dollars, it is possible to opt for a grace period with zero payments, allowing repayments (preferential or non-preferential) to be made every 6 or 4 months. Additionally, it is necessary to make at least one principal payment within the first 12 months.
  • A flexible repayment schedule is permitted.
Other terms and conditions

Loan disbursement in tranches

Up to 3 tranches

Parallel loans

AMD 75 000 000 or the equivalent in US dollars (the maximum amount of the total liability for business loans: the number is not limited)

Notes
  1. Changes in the exchange rate of foreign currency may impact the repayment of the loan.
  2. The loan term can be extended to a maximum of 45 days, depending on the repayment schedule.
  3. Calculated based on the agreed amount.
  4. The actual annual interest rate reflects the total cost of the loan if all mandatory payments, including interest, are paid according to the established procedure. This rate is determined based on the assessment of the client’s creditworthiness.
  5. Upon approval, the loan amount is transferred to the client’s account.
  6. If only an external guarantor is available, a family member of the borrower, typically the spouse if married, is registered as an affiliated person.
  7. Grace period: a period during which no interest on the loan (or other payments) and the principal amount of the loan are paid, or only interest is paid (or other payments applicable).
  8. Preferential repayment: repayment refers to repayment consisting only of interest and service charges (if applicable).
  9. Flexible Repayment Schedules: a flexible repayment schedule is a schedule in which the amount of the principal payment can vary from month to month.
  10. Tranche: a general loan is approved by signing a single loan agreement, but disbursement is partial, based on pre-approved conditions for each tranche. One or both tranches can be provided as a new loan at FINCA’s current rates. In the case of installment approval, a collateral contract may be signed. Maximum disbursement period between the first and last tranche: 6 months.
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
Timing

Loan application decision

Up to 4 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.
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

AMD 5,000,000

Loan maturity

60 months

Annual interest rate

17%

Loan servicing fee

1%.

Loan Repayment

60 months equal monthly repayments 3 months grace period

Loan disbursement day

20 June, 2025

Loan first repayment date

21 July, 2025

Loan annual percentage rate

33,15%

  • 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.
ServiceState Agency Or Cooperating Organization Providing The ServicesService 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.

Customer Success

“I have been a client of FINCA for 20 years. Over this time, I’ve taken advantage of various loan products offered by FINCA. Drawing from my positive experiences, I chose to return to FINCA to finance my ambitious agricultural endeavor. My aim was to establish a farm specializing in animal husbandry, particularly pig farming. Requiring substantial funding and favorable terms, this loan enabled me to turn my dream project into a reality. Today, I oversee a significantly sized farm and have the means to further its expansion.” – Misha Y.

Frequently Asked Questions

The required documents include a Passport, Proof document of employment and/or other income

Yes, of course, but that person must visit FINCA’s branch with you on the day of application.

The total process can take up to 4 business days.

Yes, you can pay off your loan early without penalty

We are always happy to talk

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