Business Loan – Collateral Free

Secure funding to expand your business

This loan is designed to empower you by providing not just capital, but also the support and resources needed to improve your livelihood.

Bring your business ideas to life without the need for collateral

Turn your business vision into reality – Just Prove Your Income.

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

  • Personalized Approach and Flexible Terms
    Financing is provided based on the borrower’s financial capacity, income sources, and preferred repayment terms.

  • Flexible repayment
    With a grace period of up to 9 months and a personalized repayment schedule, we put you in control.

  • Loan Limit
    Invest in your business’s future with up to AMD 5,500,000 or $11,500, unlocking the resource for growth.
  • 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

Calculate

* 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 and confirm details with you.

  • 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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Customer Success

“I aspired to expand my small family business, a clothing store. Unfortunately, lacking a credit history prevented me from securing a loan. Even attempts to obtain one in my mother’s name were unsuccessful due to her poor credit history. Facing this challenge, I sought financing from FINCA. Their specialist swiftly provided a business loan without requiring collateral, albeit for a modest sum initially. Through consistent and punctual repayments, I gradually improved my creditworthiness. Consequently, I became eligible for larger loans from FINCA, facilitating further growth of my business. Today, I’ve realized my dream of owning a larger clothing store. I’m sincerely grateful for the invaluable support and exceptional experience provided by FINCA.” – Narine

About the Loan

Main terms and conditions
Loan currencyAMDUSD
ProgramFinancing fixed and working capital for business
Loan amount300 001 – 5 500 000800 – 11 500
Loan maturity12–48 months12–48 months
Loan annual interest rate117%14%
Loan annual percentage rate134.68%-38.18% 31.08%-33․94%
Loan service fee [monthly]21,2%1,2%
Loan disbursement fee [one off]20%
Loan disbursement methodnon cash
Requirements for the borrower/co-borrower(s)[t5[

1. Legal entities registered in RA or individual entrepreneurs who receive stable income from their business activities.
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. Borrower Responsibility: Borrowers should act on their behalf and for their benefit; taking a loan on behalf of a third person is prohibited
7. 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 – 5 000 000 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 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.
  • A flexible repayment schedule is permitted.
Other terms and conditions

Loan disbursement in tranches

Single or up to 2 tranches

Parallel loans

5,500,000 AMD or 11,500 USD

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. Preferential repayment: repayment refers to repayment consisting only of interest and service charges (if applicable).
  8. Flexible Repayment Schedules: a flexible repayment schedule is a schedule in which the amount of the principal payment can vary from month to month.
  9. 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

Legal entities

  • Certificate of State Registration, director insert
  • ID cards of the director, shareholders and guarantors or their passports and social security cards
  • Copies of the state registration certificate, charter and tax code of the participants of the legal entity
  • 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.
  • 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

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
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.
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 of the borrower’s breach of contractual obligations, FINCA may adjust the loan interest rate according to the terms and conditions of the agreement.
If obligations are not met within the specified deadlines, the borrower must pay a penalty for each overdue day: 0.13% of the overdue principal, 0.13% of the overdue interest
If the principal repayment schedule is violated, the application of the contractually agreed interest rate on the overdue amount is suspended, and a 24% annual interest rate is applied from the day of the breach until the loan repayment date. If the amount paid is insufficient to cover all overdue obligations, payments are applied in the following order:
Costs incurred by the lender to collect the payable amounts Service fees Penalties Interest Principal
This order may be changed by the lender based on a written request from the borrower.
Failure to fully meet obligations is reported to the credit bureau, which will record your credit history. A poor credit history may hinder your ability to obtain new loans in the future.
This loan type has a high annual effective interest rate. Therefore, carefully review similar services available on the market and assess your ability to repay the loan in advance.

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 annual interest rate

17%

Loan maturity

48 months

Service fee

1.2%

Loan Repayment

48 months – equal monthly installments
6 months – grace period

Disbursement date

June 20, 2025

First repayment date

July 21, 2025

Annual effective interest rate

36.29%

  • 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 conditions are effective from September 6, 2024, in accordance with Decision No. 108/2024 of the Management Board of FINCA UCO CJSC dated September 4, 2024.

Frequently Asked Questions

Yes, at least 3 months of continuous business activity and residence within FINCA’s service area are required.

Theneed to have a guarantor depends on the decision of the credit committee

The required documents include a Passport, Certificate of State Registration

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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