Project Financing

If you are aiming to expand your existing business or implement new business ideas, so for the long term financing of your projects we offer a project financing tool ՝ loan up to 12 years:

Unlike the basic requirement for traditional business loans՝ that is, at least 6 months of activity, the project financing tool is provided to finance new business plans/projects. This does not mean, of course, that the bank will finance any business idea or initiative.

Highlighting the development of renewable energy and energy-saving technologies in Armenia, the Bank works closely with international financial institutions, particularly with the EBRD within the GEFF Energy Efficiency program, with KFW Bank within the framework of the Energy Efficiency for SMEs and Renewable Energy Development Projects and offer clients competitive terms of financing.

A potential customer should be a credible and acceptable person for the loan and meet at least the following requirements

  • Sufficient experience and knowledge of running a business
  • Have a good credit history,
  • present a highly reasoned and thoughtful business plan
  • be ready to invest in own funds for project implementation
  • be ready to offer sufficient guarantees for the loan from the bank or other means of security etc.

It is also very important that this Project complies with

  • the principles and policies adopted by the bank (including environmental)
  • to all acting legislative requirements

Loans for project financing are provided in stages ` according to the need for business creation and development. Before providing each share Bank employees verify

  • the expense / use correspondence of the shares previously received for the purposes of the plan,
  • efficiency of funds expense,
  • investing implementation by founders / initiators provided by the program
  • Compliance of the implementing works with the requirements of the legislation
Condition Loan
Minimum/ maximum amount 20,000,000 - 3,000,000,000 AMD or Equivalent to other currency
Minimum/ maximum term/year 1-12
Maximum grace period/year 2
  Nominal interest rate1
Fixed interest rate in AMD
Variable interest rate 2
14.00- 14.75%
13.25- 14.20%
Fixed interest rate in USD
Variable interest rate 2
9.50- 11.00%
9.00- 10.50%
Fixed interest rate in EURO
Variable interest rate 2
8.00- 9.50%
7.75- 9.25%
The procedure of interest rates In case of loans in AMD - for the first 24 months 13.25-14.50%, 25-144 months MI1*( main index), +(4,5-6,0)%, in case of unavailability of main index MI11(secondary index)+(4,5-6,0%),
In case of loans in USD - for the first 24 months 9,0-10,5%, 25-144 months MI2* (main index)+(8.5-10.5%) , in case of unavailability of main index MI21(secondary index) +(6.5-8.0%),
In case of loans in EURO - for the first 24 months 7,75- 9,25%, 25-144 months MI3 (main index) + (8.5-10.5%) , in case of unavailability of main index MI31(secondary index) +(8,5-10,0%)
  Nominal interest rate
Fixed in AMD
For licensed stations up to 5MW: AMD, USD, EUR 
AMD 8.5%-9.5%
USA 5.0%-5.5% /for licensed stations/
EUR 5.0%-5.5% /for licensed stations/
Minimum / Maximum loan amount From AMD 1,000,000 to AMD 1,000,000,000
Target companies segment Companies meeting the SME classification standards established by the RA legislation
Nominal interest rate fixed in AMD 9,00%-10,00%
Maximum term/year 7
Maximum grace period / month 6
Special notes Consumer loans are not eligible for financing under the project
mortgage loans for the purchase and renovation of residential real estate, loans to non-private beneficiaries (who own 50% of the resident residential owners in Armenia), loans related to gambling, securities and foreign currency trading, Acquisition of cars not directly related to the borrower's economic activity, refinancing of liabilities to other banks or financial institutions, Activities listed in IFC exemptions, loans for taxes, duties, and customs payments.Appropriate energy audits are performed to evaluate the energy efficiency of some projects
Maximum term/year 7
  Nominal interest rate
Minimum / Maximum loan amount
Fixed interest rate in USD

8.50- 9.50%,

% calculation procedure The interest is calculated on the loan deductible balance based on the 365 days a year ։ For EBRD Projects ՝ 360 days
Providing method non-cash form
Repayment procedure Monthly Annuity / Equal Payments, seasonal schedule, a grace period of up to 24 months is possibl. Loan interest is paid on a monthly periodicity.

*The EBRD GCF-GEFF ARMENIA Energy Efficiency Lending Program grants up to 20% of the loan amount to set up a solar power plant for its own needs

1- Exporting companies are offered Additional discounts and benefits are offered to exporting companies

2- In setting the interest rate at a variable rate, the Bank sets the variable main indicator by the contract in each case (MI). on the changing of which will be the further rate changes, as well as the bank margin: fixed component. Review rules of variable main indicators and interest rate are as follows.

Security real estate, fixed and working capital, shares / stocks, third party guarantees
loan/ collateral maximum limit 70%
advance / own project size In case of financing projects, the size of own investments should make at least 30% of total investments
Fee providing: The minimum payment
is paid at the time of applying for a loan: If the loan is approved the underpaid amount is refunded, and in case of rejection is returned without any deductions.
0.5%, minimum 100,000AMD
Request for collateral insurance at the request of the bank, at least the amount of the loan balance
Approximate annual insurance expense / % • Annual insurance premium for real estate is 0.15-0.3% of property value
• Annual equipment insurance premium is 0.2-0.5 of property value,
• Annual insurance premium for working capital accounts for 0.3-0.5 property value,
• The annual insurance premium for vehicles starts 2,5 property value
Collateral valuation Upon request by an independent estimating agency working with the bank
Approximate collateral valuation expense for each property unit • Residential property valuation starting from AMD 15,000
• For non-residential property valuation starting from AMD 25,000
• For vehicle valuation starting from AMD 8,000
For detailed information, see the list of specialized assessment organizations that work with the Bank

Organization Phone Address Email address
AKCERN-ELITA LLC + (374 10) 27 76 62
+ (374 91) 27 76 62
Yerevan, 12 Vagharsh Vagharshyan str. [email protected]
AMINTAS GROUP LLC + (374 10) 43 22 76
+ (374 96) 43 22 76
Yerevan, 23/6 Artsakh str. [email protected]
ARVM CONSULT LLC + (374 10) 54 64 90
+ (374 98) 94 44 49
Yerevan, Tpagrichneri str., 114 Building [email protected]
UPTIME LLC + (374 60) 53 53 71
+ (374 98) 53 53 14
Yerevan, Yekmalyan str., 6 Building,
5th Floor (in "Business Pale" building)
[email protected]
A.G. BORSA LLC + (374 10) 25 18 18 Yerevan, Nairi Zaryan str., 22 Building, 3rd Floor [email protected]
BILDAP LLC + (374 55) 54 71 60 Yerevan, Zaqyan str., 1 Office [email protected]
BELIEVE LLC + (374 94) 22 11 11 Yerevan, Mashtots Ave., 9-14 Building [email protected]
GARDI LLC + (374 95) 52 05 90 Yerevan, Tumanyan str., 8 building, 317 room [email protected]
COST CONSULT LLC + (374 10) 54 48 82 Yerevan, Pavstos Buzand str., 1 Building, Area 51 [email protected]
VMRP LLC + (374 10) 58 87 97 Yerevan, Vardanants str. Blind Alley, 8 Building [email protected]
OLIVER GROUP LLC +(374 10) 54 27 40 Yerevan, 8 Tumanyan str. [email protected]
INEX LLC + (374 77) 51 81 16
+ (374 55) 51 81 15
Yerevan, Orbeli Yeghbayneri str., 45 bld,
office 403
[email protected]
FINLAW LLC + (374 10) 50 60 00
+ (374 91) 91 91 55
Yerevan, Nalbandyan str., 50 bld, apt. 3 [email protected]


In case of overdue loan repayment daily penalty -% of the repayable amount 0.1%
In case of interest repayment overdue, daily penalty -% of the repayable amount 0.1%
Interest rate on overdue loan Provided by the requirements of Article 411 of the RA Civil Code
Penalty in case of early repayment (in case of credit line the penalty is calculated from the limit amount) • Up to 1/2 - 3% of the loan term, Upon expiration of the contractual term - 1%
Penalty for obstructing monitoring activities 100,000 AMD
Penalty for non-purposeful use of loan amount or part of it Up to 10% of non-targeted use
Amendment / revision of the terms of the current contract (loan, mortgage, bank guarantee, etc.) Up to AMD 50,000
An amendment to an existing contract shall be considered at least the following cases, unless a separate decision for other cases is made by the Credit Committee of the Bank `
• Revision of the repayment schedule defined by the credit agreement, unless payment of penalty for early repayment is foreseen,
• modification of other terms of the loan agreement (interest rate, loan purpose, method of settlement, etc.) according to the client's request,
• modification of the basic terms of the security, including the pledge or guarantee agreement at the client's request, early or partial release of the pledge or guarantee, etc.
The tariff does not apply to changes to contracts that are the result of changes to another contract
The term of making a loan decision within 20 working days providing all the documents required to the bank by the customer
Informing the customer about the loan decision 2 working days
The term of actual loan providing within 3 business days after the customer submits all the necessary documents for loan preparation
Review of approved / unpaid loan terms Up to AMD 50,000
Collateral registration ● Notary fee - lump sum AMD 13.000-25.000 in case of real estate pledge
● Real estate collateral registration fee - up to AMD 26,000
● • Collateral payments (for common reference and pledge) - lump sum AMD 5,000
N 1. General Documents Notes  
1. Application form the form provided by the Bank R
2. Charter copy R
3. Identification document of the director and the founders (participants) (Passport / ID card, etc.) social card or Personal Public service number (PPC) (if available, and in case of absence – relevant reference), as well as a statement of an actual place of a residence ** (the copy is provided in the bank)/ Copies / in case of founders (participants) upon request R
4. Financial information provided by credit analyst in the required format (for example՝ about the financial situation, about the financial results, about cash flows) for the last 2 reporting periods copy R
5. Account balances with other banks (for the last 12 months) original AR
6. Existing Loan, collateral and other contracts copy AR
7. Ownership certificate of place activity or lease agreement copy AR
8. Business plan or feasibility study original AR
9. License (in the case of licensed activity) copy R
10. Calculations and reports submitted to the SRC: profit tax calculation, VAT calculation, turnover and income tax calculation, turnover and income tax calculation etc.( according to the nature of the client's activity) copy / in accordance with the constitutional law, organizations subject to statutory audit present the financial statement package and audit report R
11. Reference on liabilities to the state budget original R
12. Other documents (construction contracts, Contracts for the sale of goods and services, invoices, contracts for the acquisition of fixed assets, raw materials   AR
13. Resolution (excerpt from the resolution) of the authorized body (Board or General Meeting, sole shareholder) about receiving the loan and/or pledging the suggested collateral original R
14. Statement from the state register about the changes of the members, the director as well as the charter Original/is required by the Bank when it is not possible to obtain information AR
15. For Joint Stock companies extract from the register about the shareholders of the company original AR
N 2. Collateral documents Notes  
1. Ownership certificate of the collateral copy R
2. ID (passport, identification card, etc) of the owner and/or the guarantor(s) of the collateral stipulated by the Armenian legislation, if available, and in case of absence - relevant reference, as well as a statement of actual place of residence ** (copy provided by the bank) copy R
3. ID (passport, identification card, etc) of the collateral’s owner(s)’ spouse stipulated by the Armenian legislation, , if available, and in case of absence - relevant reference, as well as a statement of actual place of residence ** (copy provided by the bank) copy R
4. Marriage certificate of the owner(s) of the collateral. copy R
5. Legal documents of the company owning the collateral and ID of the director. copy R
6. Statement from the state register/depository about changes in the statute, shareholders and director of the company owning the collateral. Original/ if the bank receives a certificate from the state through an online inquiry, it is not required by the customer AR
7. Resolution of the authorized body of the company owning the collateral about making a pledge. original R
8. Report on the assessment of the collateral For the beginning it can be a statement R
9. Property Mapping Report Original /is required in case of land pledging R
10. Vehicle registration certificate / technical passport copy R
11. State registration certificate for the ownership registration of the vehicle copy (to be presented after the credit committee approves the loan) R
12. Statement about the limitations on the disposal of the vehicle original (to be presented after the credit committee approves the loan) R
13. List of pledged fixed assets Stating the name, quantity, model, production date, country of production, serial number R
14. Technical passport(s) of the fixed asset(s) copy R
15. List of pledged working capital Stating the name, measurement unit, quantity, price, amount R
16. Consent from the collateral’s lessees Original (to be presented after the credit committee approves the loan) AR
17. Insurance certificate(s) of the collateral Copy (to be presented after the credit committee approves the loan) AR
18. Other documents (documents certifying the purchase of the collateral, procurements issued by the pledgor, spouse’s notary certified consent) Original / copy ARը

* In case of prime security the of the documents might not be required by the Bank

- The Bank might require the client to insure the collateral.
- The documents requested by the Bank can be required (R) or at request (AR)v
- Documents listed in point 10 through 15 are required if the collateral is a vehicle or other fixed/working asset.
** If necessary, at the request of the Head of Lending Department or Customer Service Department, the client shall provide a statement from the Passport and Visa
  • Penalties will accrue if you do not fulfill your obligations on time.
  • In case of overdue loan liabilities, the accumulated penalties will be paid at first, then the accumulated bank interest rate, then the contractual interest, then principal amount.
  • Attention: in case of default or failure to fulfill your obligation, the creditor sends this information to the credit bureau within 2 (two) business days where your credit history is recorded.
  • You have the right to get your credit history information free of charge once a year from the credit bureau.
  • Attention: bad credit history can prevent you from getting a loan in the future.
  • Warning: Your property (home, car or other) may be confiscated by law if you fail to make your interest and loan repayments on time.
  • Changes in foreign exchange rates may affect loan repayments.v
  • In case of default on your pledge account, if the pledge is not sufficient to cover your credit liabilities, repayment of liabilities on your other property (if any are) is possible.
  • To find out the terms, conditions and tariffs for providing statements, their copies, references and other information during the term of the contract, please consult the page "Accounting for Legal Entities and Individual Entrepreneurs"

Benchmark criteria (in Armenian)



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