Business Partner

The quickest route to long-term business growth

The loan is intended for small and medium-sized entrepreneurs who plan to make both short-term and long-term investments in their business.

Easy and Straightforward

We are making financial solutions more accessible for you.

  • Individual Approach and Flexibility: Embrace your business’s individuality with a loan that adapts to your unique needs, putting you in control of your financial journey.

  • Extensive Loan Maximums: We believe in your business’s potential – partner with us and access up to $150,000 to allowing your business to flourish.

  • Speed and Simplicity: Your time is valuable, and our simplified process reflects that, with a fast path to access funds without the overload of documents or several branch visit.

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

    Apply Online
    Fill in our easy online application form.

  • 2

    Receive a Call
    Our operator will call you in less than 15 minutes and double check details with you.

  • 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.


About the Loan

Main terms and conditions
Loan currencyUSD1
Loan amount20,001 – 50,00050,001 – 150,000
Loan maturity1–842 months
Loan annual interest rate315% – 18%14% – 16%
Loan annual percentage rate318.5% – 36.9%17.4% – 34.2%
Loan service fee [monthly]40.1%
Loan disbursement fee [one off]41.5%, maximum AMD 450,000
Loan disbursement methodCash, non cash
Loan purposeFinancing operational and capital expenses, other business and agricultural purposes
Customer Requirements
  • Legal entities and sole entrepreneurs registered in RA and engaged in business.
  • Age: 21+; the sum of the client’s age at the time of applying and the expected loan period should not exceed 70 years.
  • Residence and at least 3 months of continuous business activity within FINCA’s service area.
  • Compliance with FINCA’s social and environmental requirements.
  • Borrowers should act on their behalf and for their benefit; taking a loan on behalf of a third person is prohibited.
Minimum Requirements5 For Loan Security

USD 20,001 – 50,000

USD 50,001 – 150,000

3–36 months

One guarantor6, real estate and/or vehicle collateral of at least 50% of the loan amount7

One guarantor6, real estate and/or vehicle collateral of at least 70% of the loan amount7

37–84 months

One guarantor6, real estate and/or vehicle collateral of at least 70% of the loan amount7

One guarantor6, real estate and/or vehicle collateral of at least 100% of the loan amount

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 repayments consisting of the principal, interest and service fee.
  • Up to 9 months of grace period8 is available. For loans of agricultural purposes, the credit committee can define other grace period terms.
  • A flexible repayment schedule9 is allowed.
Other Terms And Conditions

Loan disbursement in tranches

Up to 5 tranches

Parallel loans

Up to 5 parallel Business Partner loans with up to USD 150,000 total amount

Notes
  1. Foreign currency exchange rate variations may have an impact on loan repayment amounts.
  2. The loan is provided for 1–36 months only for the acquisition of working capital, for 37–60 months for the acquisition of working capital and fixed assets, for 61–84 months for the acquisition and renovation of fixed assets unless the credit committee decides otherwise.
  3. The loan interest is calculated with respect to the outstanding amount, based on the annual interest rate. Whereas, the annual percentage rate (APR) shows the cost of the loan if the interest and all other required fees are duly paid according to the repayment schedule. The APR calculation is described in the Annual Percentage Rate section of this page.
  4. Calculated with respect to the principal.
    Service fee: the monthly service fee in case of a loan repayment schedule* is calculated by the following formula:
    SF=LA*SF%/30*ND
    Where:
    SF – Service fee
    LA – Loan amount
    SF% – % of service fee
    ND – Number of days (the time period between repayment days)*Loan repayment schedule – a schedule that defines regular loan repayment months and months with no loan repayment.
  5. The credit committee can require additional loan security: guarantee or collateral.
  6. For individuals, guarantors can be internal — family members, or external — other people. In case there are only external guarantors, a member of the borrower’s family — if the borrower is married, then their spouse — should be registered as an affiliated person. Financial guarantors should have a stable income or liquid assets (real estate, a vehicle or agricultural machinery with state registration) comparable to the loan amount. In case of legal entities guarantee of shareholders is required.
  7. The insurance of collateral is not mandatory but may be required per credit committee’s decision.
  8. Grace period — a period, during which no principal repayments are made.
  9. Flexible repayment schedule — a schedule that allows varying amounts of principal payment each month.
  10. The Business Partner loan can be provided with terms different from those presented above (interest rate, loan security, period etc.) only per the highest level credit committee’s decision.
Required Documents (To Be Submitted In Person)

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
  • Other documents upon request
Factors Influencing The Loan Decision

Positive factors

  • Sufficient level of creditworthiness
  • Good credit history
  • Loan security

Negative factors

  • Insufficient level of creditworthiness
  • Bad credit history
  • Lack of loan security
  • Non-compliance with the set customer requirements
  • Other credit risks
Timing

Loan application decision

Up to 4 business days

Provision of a written or verbal notification on the decision

Up to 1 business day

Written (paper or electronic) and verbal notification to the applicant about the negative decision

Up to 2 business days

Loan actual disbursement

Up to 20 business days after the submission of the application

Term of validity of credit committee’s decision

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 70,000

Loan maturity

60 months

Loan annual interest rate

14%

Loan service fee

0.1%

Loan disbursement fee

1.5%

Loan Repayment

Equal monthly repayments

Provision of a certificate on limitations with respect to vehicle alienation

AMD 3,000

Registration of pledge rights with respect to vehicles

AMD 2,000

Loan disbursement day

20 February 2020

Loan first repayment date

20 March 2020

Loan annual percentage rate

17.9%

  • 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

Current terms are effective as of February 21, 2022, based on FINCA UCO CJSC Management Board resolution 16/2022, 11.02.2022.

Customer Success

“I couldn’t believe that I could secure a loan so quickly, without collateral or other income documents. With this loan, I was able to purchase the truck of my dreams, which I now use for cargo transportation to provide for my family’s needs.  I am very grateful to FINCA for being my partner in this process and for supporting the creation of my business.” – Anna Z.

Frequently Asked Questions

The loan is intended for small and medium enterprises

Yes, at least 6 months of continuous business activity and Residence within FINCA’s service area

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 a 4 business days

We are always happy to talk

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