Program Agro Loan

Get easy access to affordable funding for a prosperous farm

Easy Agro-Financing: Nurturing Your Farm’s Growth with Affordable Funding.

Empowering Agriculture

Empower, Grow, Flourish: Supporting Farmers on the Road to Success.

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.

  • Loan Limit
    Unlock your farming operation’s potential with loan amounts of up to AMD 60,000,000.

  • Flexible repayment
    Benefit from a 9-month annual grace period, offering flexibility when needed.

  • Trustworthy Financing
    Enjoy straightforward funding with no monthly service fee, no disbursement fee, and no early repayment penalties. Loans up to 5 million AMD require no collateral.

  • Speed and simplicity
    Minimal documentation requirements and fast approval process.

  • Transparency
    All terms are fully transparent, with no hidden fees.

  • Accessibility
    With branches across different regions of Armenia, we are available where you need us most.

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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
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  • 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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About the Loan

Main terms and conditions
PurposeFinancing of operational expenses for agricultural purposes
Loan currencyAMD
Loan amount500,000 – 60,000,000
Loan maturity24-60 months
Loan annual interest rate213%
Loan annual percentage rate213,8%
Loan service fee (monthly)0%
Loan disbursement fee (one off)0%
Loan disbursement methodCash, non cash
Customer Requirements
  • Legal entities and sole entrepreneurs registered in RA and engaged in business are eligible.
  • Age Requirement: Applicants must be 21 years or older; the sum of the client’s age at the time of applying and the expected loan period should not exceed 70 years.
  • Residence and Business Activity: Residence and at least 6 months of continuous business activity within FINCA’s service area are required. This condition does not apply to start-up agricultural businesses, where the total project cost doesn’t exceed AMD 5,000,000. In such cases, loans can be provided based on future cash flow analysis and/or other periodic income (e.g., monthly salary).
  • Loan Coverage Ratio: A minimum loan coverage ratio of 1.5 (ratio of customer’s spare means and monthly repayment of the requested loan) is required.
  • Capital Adequacy Ratio: A minimum capital adequacy ratio of 0.4 (ratio of capital and sum of assets and requested loan) is required.
  • Compliance: Compliance with FINCA’s social and environmental requirements is necessary.
  • Borrower Responsibility: Borrowers should act on their behalf and for their benefit; taking a loan on behalf of a third person is prohibited.
Minimum requirements3 for loan security
  • Assessment of creditworthiness
  • Source of stable income

AMD 500,000 – 2,500,000

AMD 2,500,001 – 5,000,000

AMD 5,000,001 –60,000,000

One guarantor5

Two guarantors5

One guarantor5 and liquid asset6 collateral

 

  • Real Estate: Up to 80% of the appraised value
  • Vehicle: Up to 60% of the appraised value
  • Agricultural Machinery: Up to 70% of the appraised value
  • Working Capital Inventories: Up to 50% of the appraised value
  • For other collateral, the maximum loan to collateral ratio is determined based on the specific asset and its appraised value.

Co-Borrower Option: The loan can be provided to more than one borrower (co-borrower), in which case the requirements for the borrower also apply to the co-borrower

Loan repayment
  • The loan is repaid in equal monthly installments comprising the principal, interest, and service fee.
  • Up to 9 months of grace period is available during each 12-month period. However, any grace period during the entire loan period should not exceed 9 consecutive months. Zero payment grace periods are also available, allowing repayments to be made once every 6 or 4 months. It’s important to note that in this scenario, at least one principal repayment must be made during the first 12 months.
  • A flexible repayment schedule is permitted.
Other terms and conditions

Loan disbursement in tranches9

Up to 3 tranches

Changes in loan terms

Within 7 working days from the notification of loan refinancing refusal or withdrawal by the Central Bank of the RA, a new loan agreement must be signed for refinancing within the terms specified for current agricultural loans in AMD. Failure to sign a new loan agreement within the specified period will result in the annual interest rate defined by the current contract being set to 19.9%, along with a monthly service fee of 0.75% of the loan balance as of the date of change. Early repayments made before the amended schedule takes effect will not be recalculated.

Notes
  1. When financing both operational and capital expenses, the portion allocated to operational expenses cannot exceed AMD 33,000,000
  2. The loan interest is calculated based on the outstanding amount, considering the annual interest rate. The annual percentage rate (APR) reflects the total cost of the loan if all interest and other required fees are paid according to the repayment schedule. Detailed information on APR calculation can be found in the Annual Percentage Rate section.
  3. A start-up agricultural business is defined as a scenario where the potential beneficiary has not engaged in any other active business, whether agricultural or in other industries, in the previous 6 months.
  4. The credit committee may require additional loan security, such as a guarantee or collateral.
  5. For individuals, guarantors can be internal, such as family members, or external, such as other individuals. If only external guarantors are available, a family member of the borrower—typically the spouse if married—should be registered as an affiliated person. Financial guarantors should have a stable income or liquid assets (such as real estate, vehicles, or agricultural machinery with state registration) comparable to the loan amount. In the case of legal entities, the guarantee of shareholders is required.
  6. Liquid asset collateral can include state-registered agricultural machinery, vehicles, or real estate. There is no need to insure the collateral.
  7. Flexible Repayment Schedule: A schedule that permits varying amounts of principal payment each month.
  8. Grace period refers to a period during which no principal repayments are made.
  9. Tranche: A total loan is approved by signing one loan agreement; however, the disbursement is made in parts, subject to pre-established conditions for each tranche. If the loan is approved in tranches, the collateral agreement can be signed for the full amount of the loan or separately for each tranche. One or more of the tranches may be provided in the form of a new loan with current FINCA rates. The maximum disbursement period between the first and last tranche is 6 months.
Required Documents (To Be Submitted In Person)

Individuals

  • ID cards of the borrower and the guarantors or their passports and social security cards
  • Public Service Number of the borrower and guarantor(s) (if any) or a certificate of non-receipt of the latter
  • If the borrower is a sole entrepreneur, a Certificate of State Registration is also required
  • 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
Factors Influencing The Loan Decision

Positive factors

  • Sufficient level of creditworthiness
  • Good credit history
  • Stable income generated from agriculture

Negative factors

  • Insufficient level of creditworthiness
  • Bad credit history
  • Absence of stable income
  • Non-compliance with the set customer requirements
  • Provision of false or untrustworthy info
  • Other credit risks
Timing

Loan application decision

Up to 3 business days

Provision of a written or verbal notification on the decision

Up to 1 business day

Loan disbursement

Up to 4 business days after the submission of the application

Written or verbal notification of a positive decision to the applicant within

Maximum of 1 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.
List of Eligible Activities within the Framework of Program Agricultural Loans

A1. Crop production (including perennial and non-perennial crops and horticulture)
A2. Propagation of seeds and plants
A3. Pre-harvest crop activities (fertilization, grafting, etc.)
A4. Post-harvest activities (sorting, sterilization, loosening, etc.)
A5. Livestock farming (cattle, sheep, pigs, poultry, etc.)
A6. Livestock support activities (veterinary services, vaccination, artificial insemination, shearing, etc.)
A7. Fish farming and other aquaculture
A8. Meat preservation and processing (from locally produced raw materials)
A9. Fish, crustacean and mollusk preservation and processing (locally produced)
A10. Fruit and vegetable preservation and processing (locally produced)
A11. Manufacture of vegetable and animal oils and fats (from locally produced raw materials)
A12. Production of dairy products, including cheese and ice cream (from locally produced raw materials)
A13. Production of grain and starch products (from locally produced raw materials)
A14. Production of animal feed (primarily locally produced)
A15. Production of pesticides, herbicides and insecticides
A16. Production of fertilizers
A17. Sale and leasing of agricultural machinery (e.g., tractors, combines, etc.) and agricultural capital investments (e.g., irrigation systems)
A18. Sale of agricultural machinery spare parts and agricultural capital investments
A19. Repair of agricultural machinery and agricultural capital investments
A20. Construction of agricultural buildings and warehouses, including equipment installed therein
A21. Beekeeping, production of beekeeping products, and manufacture of beehives
A22. Slaughterhouses for livestock
A23. Processing and/or drying and packaging of berries and herbs collected in the wild (e.g., preparation of traditional herbal teas)
A24. Production of cosmetic and beauty products mainly using locally grown or wild-harvested plants and products
A25. Transportation of agricultural products by specialized vehicles, including, for example, grain trucks, milk tankers, vehicles for transporting livestock, live poultry and live fish, and beekeeping transport services (excluding transportation of finished food products).

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 1,000,000

Loan maturity

36 months

Loan annual interest rate

13.5%

Loan service fee

0%

Loan disbursement fee

0%

Loan repayment

3 months of grace period

Loan disbursement day

03 June 2024

Loan first repayment date

03 July 2023

Loan annual percentage rate

13.8%

  • 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 August 1, 2024, in accordance with Decision No. 95.1/2024 of the Management Board of “FINCA” UCO CJSC, dated July 29, 2024.

Customer Success

This loan allowed me to secure financing from FINCA without collateral, unnecessary hassles, and on affordable terms. With this financial support, I was able to quickly expand my livestock farm and increase the number of animals. FINCA has been instrumental in helping us realize our plans. Thank you.” – Artur

Frequently Asked Questions

The required documents include a Passport, If individual entrepreneur, a Certificate of State Registration

Yes, you can. No collateral is required

The total process can take up to 3 business days.

Yes, you can pay off your loan early without penalty

We are always happy to talk

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