Program Business Loan

Expand Your Business Opportunities with Affordable Funding

Embrace a financial landscape that adapts to your business requirements, empowering growth and innovation.

Realize your business projects and dreams with FINCA’s easy financing

An enticing lending opportunity for individuals and legal entities engaged in business, in collaboration with the German-Armenian Fund, offering the potential for significant profitability.

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
    Your business deserves flexibility. We offer a grace period of up to 9 months, tailored to accommodate your specific business needs.
  • Flexible repayment
    Empower your farming operation with loans of up to AMD 60,000,000, providing ample opportunities for development and expansion.

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

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Customer Success

“I am deeply grateful to FINCA for providing me with this loan opportunity. I had been contemplating the idea of opening a pharmacy for a while, but I lacked both the space and the necessary funds to make it a reality. Thanks to FINCA’s business loan, I was able to acquire land and construct my own pharmacy, which has now become a stable source of income for my family. I am thankful for this opportunity and for the availability of this loan.” – Hayk Gh

About the Loan

Main terms and conditions
Purpose
CurrencyAMD
Loan amount500 000 –60 000 000500 000 –60 000 000
Loan terms3-18 months12-60 months
Annual interest rate11,4%13,4%
Annual effective rate13,0-26,4%14,25%
Loan service fee0%
Loan disbursement fee2%, maximum 450.000%
Loan disbursement methodNon cash
Customer Requirements
  • Eligible Entities: 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 Requirements: Residence and a minimum of 6 months of continuous business activity within FINCA’s service area are required. However, this condition is waived for start-up businesses where the total project cost doesn’t exceed AMD 5,000,000. In such cases, loans can be granted based on future cash flow analysis and/or other periodic income, such as monthly salary.
  • Minimum Loan Coverage Ratio: The loan coverage ratio, which measures the ratio of the customer’s spare means to the monthly repayment of the requested loan, must be at least 1.53
  • The Capital Adequacy Ratio: The capital adequacy ratio, which indicates the ratio of capital to the sum of assets and the requested loan, should be a minimum of 0.43.
  • 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 requirements4 for loan security
  • Assessment of creditworthiness
  • Source of stable income

AMD 500,001 – 60,000,000

AMD 500,000 – 2,500,000: one guarantor

AMD 2,500,001 – 5,000,000: two guarantors or one guarantor and collateral with a minimum value of 30% of the loan amount

One guarantor and collateral, with the following maximum loan-to-collateral ratios:

Real estate: up to 80% of the appraised value

Vehicles: up to 60% of the appraised value

Agricultural machinery: up to 70% of the appraised value

Inventory (working capital goods): up to 50% of the appraised value

Other collateral: up to 50% of the 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 or according to a flexible schedule, consisting of principal, interest, and service fees (if applicable). A grace period of up to 9 months is available.

The borrower may repay the loan early, in full or in part, without paying a penalty. In the case of early repayment, the borrower’s total credit cost (interest and other fees) is proportionally reduced along with the principal, unless the borrower provides other written instructions. Penalties and other charges prescribed by RA law or the agreement for non-fulfillment or improper fulfillment of obligations, as well as fees stipulated by Article 15 of the RA Law on Consumer Credit, are not reduced.

When the loan is fully repaid early, the borrower pays the calculated principal, interest, service fees (if applicable), and other charges as of that day. Future monthly payments may be made in advance upon submitting a written instruction. Each future month’s repayment is applied in the following order:Service fees (if applicable) and other charges Interest, Principal

Other terms and conditions

Loan disbursement

Single or up to 5 tranches

Parallel loans

There is no limit to the number of loans of this type. The total obligations of loans provided within this loan type cannot exceed AMD 60 million.

Changes in loan terms

In the event the RA Central Bank rejects refinancing or issues a notice for loan recall after refinancing, a new loan agreement is signed within 7 business days for refinancing the provided loan under the terms currently established for business cash loans. If a new loan agreement is not signed within the specified period, the interest rate under the existing agreement is set at 24.0% per annum, but not more than twice the RA Central Bank’s calculated banking interest rate. No recalculation is made for early repayments made before the revised schedule takes effect.

Notes

Loan interest is calculated based on the nominal interest rate on the loan balance. The annual effective interest rate shows the total cost of the loan, including interest and all other mandatory fees related to the loan disbursement, if payments are made according to the schedule. The calculation method for the annual effective interest rate is provided below.

The loan amount is transferred to the client’s account.

A startup business refers to a case where the potential beneficiary has had no other operating business in the previous 6 months.

Deviations from the prescribed capital adequacy and loan coverage ratios are approved according to the Company’s internal legal acts.

A personal guarantor may be internal (family member) or external (another person). For legal entity loans, the guarantee of founders holding more than 10% is mandatory.

Flexible repayment schedule – a schedule in which the monthly principal repayment amount may vary each month.

Grace period – a period during which no principal repayments are made.

Tranche disbursement – the total loan is approved under a single loan agreement but disbursed in parts, after meeting pre-approved conditions for each tranche. One or more tranches may be provided as a new loan at FINCA’s current rates. When a loan is approved in tranches, the collateral agreement may cover the entire loan amount or be signed separately for each tranche. The maximum period between the first and last tranche disbursement is 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 Entity

Identity document of the borrower and guarantor(s)

Public Services Number (PSN) of the borrower and guarantor(s), or a certificate confirming its absence

Identity documents and PSNs of the director, shareholders, and guarantors, or certificates confirming their absence

Copies of the state registration certificate, charter, and tax code of the legal entity

Client’s email address

Factors Influencing The Loan Decision

Positive factors

  • Sufficient level of creditworthiness
  • Good credit history
  • Income from the business repaying the loan

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

Actual loan disbursement: from the submission of the application

Within a maximum of 20 business days

Validity of the Credit Committee’s decision

Maximum 15 business days

Provision of a written or verbal notification on the decision

Up to 1 business day

The credit committee decision validity period

Up to 15 business days

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 2,500,000

Loan maturity

36 months

Loan annual interest rate

13.4%

Loan service fee

0%

Loan disbursement fee

0%

Loan repayment

3 months of grace period from the beginning of term

Loan disbursement day

02 Dec 2024

Loan first repayment date

03 Jan 2025

Loan annual percentage rate

14.25%

  • 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

a) consumer loans,

b) loans intended for purchase or renovation of residential real estate

c) loans provided by the government for the acquisition of land to be alienated for state needs

d) loans to non-private stakeholders (stakeholders with less than 50% share of RA resident private owners)

e) loans related to currency speculation and speculative stock

f) loans provided to repay the borrowers’ other credit obligations

g) pawn loans or all loans that are provided only on the basis of collateral (sub-loans must be provided based on financial analysis of at least the previous 6 months of business activity (agricultural and/or other field))

h) loans related to the activities listed in IFC’s exclusion list

i) revolving credit lines

Effective from December 2, 2024, according to the decision No. 136/2024 of the Board of Directors of FINCA UWC CJSC dated 21.11.2024

Frequently Asked Questions

Yes, at least 6 months of continuous business activity and residence within FINCA’s service area are required.

The need to have a guarantor depends on the decision of the credit committee

The required documents include a Passport, 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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