Business Loan with Rural Microfinancing Fund Project

Purchase of fixed and / or working capital and/or capital reconstruction and/or other loan repayment.

The borrower must act on his behalf and for his benefit when receiving the loan. It is forbidden to borrow money for the benefit of a third party.

19%

Attention! This loan nominal interest rate can be modified by the company.

Up to 3 months.

Individual repayment schedule depending on the customer's specifications.

In case of 300 000 - 500 000 AMD amount 2 physical person/guarantors. In case of 500.001 and above 3 physical person/guarantors. And in all cases one  guarantor must be family member.

The minimum criteria that external guarantors should correspond to are:

stable salary or business income and/or property (vehicles, real estate) comparable to the loan amount.

The borrower is authorized to make early (total or partial) repayment of the loan without paying any penalties and implement obligations according to the Agreement. Moreover,

✔ In case of loan total early repayment, the borrower pays loan service and other fees, interest and loan amount as of the date of payment

✔In case of loan partial early repayment, from the borrower is charged total amount of coming repayment according to borrower’s Repayment Schedule,

but if the payment exceeds the amount of subsequent repayment, then the exceeding part is channeled to the loan repayment (with the exception of cases prescribed by the loan contract).

In cases when the payment amount is not enough to cover total amount of subsequent repayment according to borrwer’s repayment schedule, then the repayment is done in the following order

1) Service and other fees 2) Interest 3) Loan

✔ The borrower is authorized to make repayment on his desire for the coming months according to Borrower’s Repayment Schedule. In that case repayment will be done

in the following order 1) service and other fees for subsequent months, 2) interest calculated as of repayment day, 3) interest for subsequent months on loan balance,

4) loan amount for subsequent months. The borrower is exempted to make repayments according to borrower’s repayment schedule for the already repaid months

In case of failure to meet the obligations in the deadlines set out by the borrower's repayment schedule, the borrower shall pay the Lender a penalty

1) In the amount of 0.13% of the unpaid loan amount for each overdue day 2) In the amount of 0.13% of the unpaid interest amount for each overdue

day In case of breaking the deadlines of paying the loan amount (breach), prescribed by the loan contract, set out by the repayment schedule,

the calculation of the loan annual interest rate prescribed by the contract with respect to the overdue loan amount is stopped and from the day

of the breach till the actual repayment day of the overdue loan amount subject to repayment, an interest starts being accrued in the amount of

24 percent (twenty-four percent) annual interest rate. In case of existence of overdue liabilities on loan and interests from the borrower’s side and

insufficiency of paid amounts, liabilities are paid in the following order: first are repaid expenses executed by the Lender for bringing back the obligations,

then service fees, accrued penalties, interests and loan amount.

  Legal Entities

✔ Certificate of State Registration,

✔ Tax code,

✔ Passports / identification cards of directors and shareholders,

✔ Financial Statements for the Latest Reporting Period,

✔ Determination of the Authorized Body for applying for a loan and providing the property as collateral,

✔ Guarantors’ passports / identification cards, income / property documents,

✔ Other documents defined by Credit Committee.

  Individual Entrepreneurs

✔ Certificate of State Registration,

✔ Borrower’s and Guarantors’ Passports / identification cards,

✔ Marriage certificate (if applicable),

✔ Other documents defined by Credit Committee.

✓ Availability of potential client’s place of residence in the service area of ECLOF UCO LLC representation network.

✓ Availability of satisfactory credit history: - The absence of classified liabilities (loans, guarantees), except standard ones, at the time of applying for loan.

✓Positive credit history

✓Transparency of activity,

✓Availability of confirmed monthly income,

✓Existence of ownership

✓Pledge and/or guarantee 

✔ Insufficient level of creditworthiness,

✔ Bad credit history,

✔ Other risks

The nominal interest rate for this loan may be changed by ECLOF.It has the right to unilaterally change the interest rate of the loan in case the borrower

breaches the obligations set forth in the agreement, by the manner and cases prescribed by the agreement.

where:

A credit sum (initial size of credit provided to consumer by creditor). n number of the repayment directed to credit coverage

N number of the last repayment directed to credit coverage Kn amount of the n repayment directed to credit coverage Dn time

span between the day or credit extension and the day of making the n repayment directed to credit coverage, expressed by number

of days i Annual Percentage Rate (APR), which can be calculated if the other data of the formula are known from loan agreement or any other way