Business Loan – With Collateral

Fuel your business with tailored solutions

We’re here to be your financial partner in achieving your business aspirations, offering straightforward and accessible financing.

Realize your business projects with our easy financing

Realize your entrepreneurial projects and dreams with our user-friendly financial support, paving the way for success and growth.

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 up to 9 months of grace period, we ensure that you have the time and flexibility to invest in your business’s future without pressure.
  • Loan Limit
    Elevate your business operations with a loan amount reaching up to AMD 10,000,000 or $20,000, enabling you to take bigger steps forward.
  • 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.


Discover Your Perfect Loan

Quickly find a loan option that fits your needs and is customized just for you.

Learning and development

Read insightful blogs, learn valuable lessons, and develop skills to thrive in finance, business, and beyond.

Customer Success

“I’ve been immersed in the business of construction materials for years. A FINCA specialist truly grasped my current endeavors and detailed business aspirations. With minimal paperwork and no prolonged waiting, my loan got approved within a single business day. This enabled me to promptly kick-start my guest house venture. Thank you for your unwavering support.” – Stepan G.“

About the Loan

Main terms and conditions
Loan currencyAMDUSD
ProgramFinancing fixed and working capital for business
Loan amount1 000 000 – 10 000 0002,000-20,000
Loan maturity12–60 months12–60 months
Loan annual interest rate117%12%
Loan annual percentage rate131.15%-34.75%28.39%-31.25%
Loan service fee [monthly]21%1,2%
Loan disbursement fee [one off]20%
Loan disbursement methodnon cash
Requirements for the borrower/co-borrower(s)5

1. Eligible Applicants: Legal entities registered in RA or individual entrepreneurs who receive stable income from their business activities are eligible for our services.
2. 2Age 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. 3Debt 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. 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

Availability of a guarantor (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 consisting of principal, interest (if applicable), and service fees. Each 12-month period allows for a grace period of up to 9 months. The number of consecutive grace repayments must not exceed 9 during the entire loan term. A flexible repayment schedule is permitted.

Other terms and conditions

Disbursement in tranches

Single or up to 3 tranches

Parallel loans

AMD 60,000,000 or USD 150,000

Notes
  1. Changes in the exchange rate of foreign currency may impact the repayment of the loan.
  2. Depending on the repayment schedule, the loan term can be extended to a maximum of 45 days
  3. Calculated based on the agreed amount.
  4. The actual annual interest rate shows how much the loan will cost if interest and all other mandatory payments related to the loan are paid in accordance with the established procedure.
  5. The procedure for calculating the actual annual interest rate is given below. It is determined based on the assessment of the client’s creditworthiness.
  6. Upon approval, the loan amount is transferred to the client’s account.
  7. If only an external guarantor is available, a family member of the borrower, typically the spouse if married, is registered as an affiliated person.
  8. 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).
  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

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.

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.
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

Loan servicing fee

1.2%

Annual interest rate

12%

Loan Repayment

Equal monthly installments

Loan disbursement day

20 June 2025

Loan first repayment date

21 July 2025

Loan annual percentage rate

28․81%

  • 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

Effective from June 1, 2025, according to decision No. 50.1/2025 of the Board of Directors of FINCA UWC CJSC dated 20.05.2025

Frequently Asked Questions

It can be movable and immovable asset

The required documents include a Passport, Certificate of State Registration

Yes, you can. It is enough to apply for this type of loan

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

Request a callback.