Individuals

• ID cards of the borrower and the guarantors or their passports and social security cards.
• 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.

Additional

• Documents confirming the client’s income.
• Other documents as required (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 thereafter.

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

• Making a decision on a loan application: maximum 3 business days.
• Written or oral notification of the applicant of a positive decision, maximum 1 working day.
• Written (paper or electronic)a statement to the applicant about a negative decision. Notice: maximum 2 business days.
• The actual provision of the loan, a maximum of 20 jobs from the date of application day.
• The maximum period of validity of the decision of the credit committee is 15 working days.

• The loan can be signed at all FINCA branches.
• Before signing the contract, an individual sheet is provided, which presents the individual terms of the loan to be provided.

• Interest on the loan is calculated based on the nominal interest rate on the loan balance. And actually per year? interest rate shows how much the loan will cost interest charges and all other mandatory related to the provision of the loan in case of making the payments in the prescribed manner. The procedure for calculating the actual annual interest rate is presented below.
• The loan amount is transferred to the customer’s account.
• Deviations from the established ratios of capital adequacy and loan coverage are approved in accordance with Internal legal acts of the company.
• If the borrower is a private individual, the guarantor can be both internal (family member) and external (another person). If there is only an external guarantor, then a member of the borrower’s family or, if married, the spouse is registered as an affiliate. The financial guarantor must have an income comparable to the loan amount or liquid assets. In the case of a legal entity, the guarantee of persons with a significant share of 10% or more is mandatory.
• Flexible repayment schedule – A schedule in which the principal payment amount can vary from month to month.
• Grace period: a period during which principal repayments are not made. Preferential redemption only repayment consisting of interest and service charge.
• Tranche — a total loan is approved by signing one loan agreement, however, the disbursement is made in parts, subject to the 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. Maximum disbursement period between the first and last tranche – 6 months.

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
K_n – the amount of the n^th installment for loan repayment
D_n – the number of days between the loan disbursement date and the date of the n^th installment for loan repayment
i – the annual percentage rate

Loan amount

1,500,000 AMD

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

Loan disbursement day

3-Dec-24

Loan first repayment date

03-Jan-2025

Loan annual percentage rate

14.25%

a) consumer loans
b) loans for the purchase or repair of residential real estate
c) Loans provided by the Government for the acquisition of land subject to alienation for public needs for
d) loans provided to recipients who are not private beneficiaries (the share of private owners-residents of the Republic of Armenia is less than 50% beneficiaries who have)
e) loans related to currency and securities speculation
f) loans provided to repay other credit obligations of beneficiaries
g) pawnshop loans or all loans provided only on the basis of collateral (sub-loans must be provided with financial resources for doing business (in agriculture and/or other industries) for at least 6 months preceding based on the analysis)
h) loans related to activities listed in the IFC exclusion list https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/company-resources/ifcexclusionlist
I) Revolving credit lines

• FINCA has the right, in cases provided for by the agreement and the terms and conditions that are an integral part of the agreement, to unilaterally change the interest rate on the loan to “+5” percentage points, but no more than by the Central Bank of the Republic of Armenia twice the established provision on calculating bank interest, notifying the borrower about a change that took effect 7 working days before entry.
• Statements of credit obligations are provided in accordance with the legislation of the Republic of Armenia at regular intervals. Other information is provided to a maximum of 10 employees in any FINCA branch during the day based on the application.
• Tariffs for the provision of statements and other information are set in accordance with the internal legal regulations of FINCA.
• You can contact FINCA in any way convenient for you: by mail or electronically: receiving information in electronic form is most convenient, since it does not involve the risk of losing paper information.
• To compare the types of loans offered to individuals and choose the most appropriate option, you can visit the electronic platform “your financial the reference book” www.fininfo.am at the address.”

This type of loan is subject to review at least once a year from the date of entry into force.