SME Development Loans

The loans are provided to existing and start-up small and medium enterprises, private entrepreneurs and farmers for the establishment and enlargement of their activity. There will be a special approach to those business-plans which will ensure sucessfull prosper of the business, its further sustainibility, creation of new workplaces and loan repayment.

Terms and Conditions
The loans are provided to start-up or already registered legal entities or individual farmers on the following conditions:
• Loan amount: USD 1 500-60 000
• Maximum period is 60 months.
• Loan interest rate is 14% or 12% annual, calculated against the actual loan balance, based on calendar year (365 days), denominator – 365.
• Interest is paid on monthly basis.
• In the submitted business-plan the Borrowers should ensure at least 10% own contribution in case of existing entities and 25% in case of start-ups.
• The loans can be disbursed to portions depending on the business plan.
• The repayment schedule of the principal amount will be based on the cash flow of the business plan. A grace period of up to 12 months may be applied to postpone the repayment of the principal amount.
• No extra fee is charged for early loan repayments.
• Loans should be secured by collateral or by other means as defined by the law.
• Loans of up to USD 8000 can be provided also with 3 and more guarantees.
• Collateral is mandatory for loans over USD 8000 (the loan amount cannot exceed 75% of the value of the collateral).
The value of the collateral can be determined by a credit specialist. In this case assessment by an independent evaluator is not obligatory.
* Loan commission is 2% of the approved loan amount, not more than AMD 75 000; AMD 6 000 of which is the application processing fee which must be paid by the Applicant before the submission of the application and is non-refundable even if the application is rejected.
* In case of loans provided in US dollars, the service fee, interest and penalties (fines) should be paid in Armenian Drams based on the USD exchange rate defined by the CBA. Currency exchange rate fluctuations can affect the loan repayments.


The property (house, car, etc.) put up  as a collateral can be confiscated if you do not make appropriate repayments on time. In case of insufficiency of the collateral to cover your loan obligations, your other personal property can be confiscated as well.


All the information about loan repayments, as well as delays of repayments will be registered in the Credit Register of the Central Bank of Armenia and all credit bureaus.


Updated  16/01/2020