- Annual Interest Rate15.0%
- Effective Interest Rate (EIR)16.0% - 20.5%
- Loan Amount5,000,000 - 100,000,000 AMD
- Loan Term12 - 60 months
General Terms and Conditions | |||
Loan Type | Collateralized Entrepreneurial Loan | ||
Purpose of Loan | Business development, including financing of working capital and/or acquisition of fixed assets, refinancing, and other business-related purposes. | ||
Requirements for Borrower | - RA resident legal entity or individual entrepreneur with at least 6 months of income from entrepreneurial/business activity - For individual entrepreneurs: age 20–68 years (at the time of application) | ||
Loan Amount | 5,000,000 – 100,000,000 | ||
Loan Currency | AMD | ||
Loan Term* | 12 - 60 months | ||
Annual Nominal Interest* | 15.0% | ||
Annual Effective Interest Rate | 16.0% - 20.5% | ||
THIS TYPE OF LOAN HAS A HIGH ANNUAL EFFECTIVE INTEREST RATE. THEREFORE, IT IS RECOMMENDED TO COMPARE WITH OTHER SIMILAR SERVICES AND ASSESS YOUR ABILITY TO REPAY THE LOAN BEFORE APPLYING. | |||
Application Review Fee | None | ||
Loan Issuance Fee | 0%-1% | ||
Charged as a one-time fee at the time of loan disbursement | |||
Loan Servicing Fee* | None | ||
Loan Disbursement Method | - Cashless - Loans may be disbursed in a single tranche or in stages The loan amount is transferred to the customer’s bank or card account | ||
Loan Repayment Method | - Annuity (equal monthly installments) - Equal principal repayment schedule (declining balance method) - A grace period of up to 6 months per year may be granted (during which principal repayment is not required) - Other repayment methods determined by the Credit Committee | ||
Collateral | - Public premises, private house, residential house, apartment - Vehicles - Preferred property locations: Yerevan, Gyumri, Vanadzor, Artashat, Armavir, Ashtarak, Ararat, Ejmiatsin, Proshyan, Argavand, Kasakh, Vedi, Tairov, Parakar, Hrazdan, Arinj, Dilijan, Abovyan, Zovuni, Dzoraghbyur, Tsaghkadzor, Ptghni, Jrvezh, Kanakeravan | ||
Loan-to-Value Ratio (LTV) | The maximum loan amount may consitute: - up to 80% of the market value of real estate collateral as assessed by an independent appraisal company - up to 60% of the market value of motor vehicles - up to 50% of the market value of other movable property Up to 20% of the loan amount may be secured by a guarantee provided by a natural and/or legal person, but not exceeding AMD 10,000,000. | ||
Guarantee | May be required by the Credit Committee | ||
Creditworthiness Assessment | - Credit history - Financial and economic analysis of the business - Social profile of the borrower | ||
Early Repayment Penalty | For loans exceeding AMD 5,000,000. Within the first 36 months, if the early repayment amount exceeds twice the scheduled monthly principal amount, a penalty of 0% – 2% of the exceeding amount may be applied. The specific penalty rate is determined by the Credit Committee. | ||
Penalties | In case of failure to meet obligations on time, the borrower must pay for each overdue day: - 0.13% of overdue principal - 0.13% of overdue interest Payment is applied in the following order if funds are insufficient: - Expenses incurred to recover due amounts - Penalties - Servicing fees (if applicable) - Interest - Principal The sequence may be changed by the lender upon written request of the borrower | ||
Maximum Decision Period for Loan Application | 3 working days (if all required documents are submitted) | ||
Validity period of a positive Credit Committee decision | 15 working days | ||
Notification of Decision | Within 1 business day after the state registration of the collateral. | ||
Loan Disbursement Period | Head Office | ||
Required Documents | Before submission to lender: - Loan application - Licenses for business operations (if applicable) - Consent for personal data processing - Consent for Credit Bureau (ACRA) inquiry - Documents confirming declared turnover for the last 6 months - Passports of all property owners, birth certificates for minors (copies) - Certificate of ownership of collateral - Basis for ownership of real estate - Valuation report from independent appraiser for real estate collateral For individual entrepreneurs: - Passport/ID card - Social Card - State registration certificate For legal entity applicants: - Passport/ID of executive body head and participants with ≥10% ownership - Charter (latest version with all amendments) - Decision of authorized body regarding obligations, guarantees, or collateral - Additional documents may be requested at the company’s discretion - “Know Your Customer” documents may be required under AML/CTF laws The Company may requset additional documents and/or information at its discretion. For the purposes of customer due diligence under the RA Law on Anti-Money Laundering and Counter-Terrorism Financing, additional documents or information may be requested from the customer in accordance with the Know Your Customer (KYC) principle. In case of a positive Credit Committee decision - Unified certificate on encumbrances issued by the State Committee of the Real Estate Cadastre of the Republic of Armenia - If the collateral owner is a married natural person: - Passport of the spouse - Marriage certificate - Spouse’s consent to pledge the property Documents may be submitted in person or electronically (subject to the Company’s consent) within the timeframe specified by the Company. | ||
Factors Influencing Positive Decision | - Complete required documents and conditions - Positive credit history - Sufficient business income, creditworthiness, repayment capacity - Credible information - Other acceptable positive factors | ||
Factors Influencing Negative Decision | - Negative credit history - Providing unreliable data - Insufficient business income, creditworthiness, repayment capacity - Unacceptable loan subject for the company | ||
R=P x r / (1–1/(1 +r)n), Where:
R - Monthly loan payment
P - Loan principal amount
n - Total number of loan payments for the entire loan period (in months)
r – Monthly interest rate, equal to 1/12 of the annual interest rate specified in the loan agreement at the time of disbursement
The calculation of the outstanding loan balance in monthly payments is done using:
Pt = R x ((1-1/(1+r)n ) / r, Where:
Pt - Actual outstanding loan balance at the end of period t
R - Monthly loan payment
t - Number of payments remaining until the end of the loan term (in months)
r – Monthly interest rate, equal to 1/12 of the annual interest rate specified in the loan agreement.
The annual effective interest rate is then calculated based on this formula.
i – Annual Percentage Rate (APR) / effective annual interest rate
A – Credit amount / the initial amount of credit provided to the borrower by the lender
n – Number of the payment directed towards loan repayment
N – Number of the final payment directed towards loan repayment
Kn – Amount of the n-th payment directed towards loan repayment
Dn – Time period from the credit disbursement date to the date of the n-th repayment, expressed in days
i – Annual effective interest rate, which can be calculated if the other parameters of the equation are known from the credit agreement or other sources
Example of Calculating Annual Effective Interest Rate (APR)
1) Unsecured consumer loan example:
- Loan amount: 500,000 AMD
- Nominal annual interest rate: 12.5%, calculated on the declining loan balance
- Monthly service fee: 2.0%, calculated on the declining loan balance
- Loan term: 12 months
- Repayments: Monthly equal payments (annuity)
- No other payments from the customer
The annual effective interest rate (APR) for the above-mentioned loan will be 42.83%.
2) Example of a Loan Secured by a Guarantee:
- Loan amount: 1,000,000 AMD
- Nominal annual interest rate: 20.5%, calculated on the declining loan balance
- Monthly service fee: 1.8%, calculated on the declining loan balance
- Loan term: 30 months
- Repayments: Monthly equal payments (annuity)
- No other payments from the customer:
- One-time loan account service fee at the time of loan disbursement (1% of the loan amount) – 10,000 AMD.
The annual effective interest rate (APR) for the above-mentioned loan will be 52.34%.
3) Example of a Loan for Vehicle Purchase:
- Loan amount: 2,000,000 AMD
- Nominal annual interest rate: 24%, calculated on the declining loan balance
- Loan term: 24 months
- Repayments: Monthly equal payments (annuity)
- No other payments from the customer:
- One-time vehicle appraisal fee: 10,000 AMD
- One-time notary fee for collateral: 13,000 AMD
- One-time police registration fee: 5,000 AMD
- One-time loan account service fee at loan disbursement (2% of the loan amount): 40,000 AMD
- Annual insurance fee: 2.5% of the outstanding loan balance
4) Example of a Loan Secured by Real Estate:
- Loan amount: 5,000,000 AMD
- Nominal annual interest rate: 20%, calculated on the declining loan balance
- Loan term: 60 months
- Repayments: Monthly equal payments (annuity)
- Additional one-time payments from the customer:
- Real estate appraisal fee: 15,000 AMD
- Certificate on encumbrances: 10,000 AMD
- Notarization of collateral agreement: 15,000 AMD
- Collateral registration fee: 27,000 AMD
- One-time loan account service fee at loan disbursement (1% of the loan amount): 50,000 AMD
According to Article 11 of the Law of the Republic of Armenia “On the Circulation of Credit Information and the Activity of Credit Bureaus”, credit reports provided by a credit bureau must not include credit information older than five years preceding the date of the report.
Think carefully before becoming a guarantor for someone else, do not guarantee a person with a poor credit history.
Pay your utility bills on time (gas, electricity, water, mobile phone, and others).
For more detailed information, visit:
www.abcfinance.am - Credit History: Key Information
www.acra.am - Frequently Asked Questions
For any questions related to your credit history, you can also contact the Company directly by submitting a written request. The Company will provide a written response within 10 business days from the date of receiving your request.
The purpose of the score is to help the Company assess how risky it is to grant a loan to the customer. Each type of SCORE has its own scoring range, and the closer a customer’s score is to the maximum threshold, the higher the likelihood of obtaining a loan. A high SCORE indicates low risk, while a low SCORE indicates high risk.
To assess loans, the Company uses an internal creditworthiness/loanworthiness assessment system and/or the FICO score.
The calculation details of the internal assessment system are considered trade secrets.
However, several factors that influence the SCORE can be noted:
- Customer’s loan repayment history: Past repayments and their patterns can affect the SCORE.
- Size and number of loans: The amount and number of loans can have both positive and negative effects on the SCORE.
- Progress of the credit history: How consistently the customer has made payments can positively or negatively influence the SCORE.
- Existence of overdue loans.
- Frequency and number of delays, their classification, and the total number of overdue days.
- Income, and other factors.
- Additionally, credit history inquiries can affect the credit SCORE (potentially lowering it), which in turn may influence the Company’s decision to grant a loan and could be a reason for a negative decision.
Factors influencing the FICO score include the various types of credit obtained and responsibly repaid by the customer (consumer loan, mortgage, etc.). Delinquent repayments during the loans and credit history, the number of loans repaid, income level, and work experience also positively affect the history.
The negative impact on the FICO score arises from existing delays in loan payments, credit burden, and the number and frequency of new credit applications. The analytical forms developed by the organization are based on the customer’s behavioral and qualitative indicators. By making timely monthly payments, reducing the number of new credit applications, guarantees provided, and credit burden, the customer can improve their FICO score.
Detailed information about the FICO score and its calculation can also be obtained through the ACRA_Fico and ABCFinance_Score links.
WARNING: YOUR PROPERTY MAY BE FORCIBLY LIENED IN ACCORDANCE WITH THE LAW, AND YOU MAY LOSE YOUR RIGHTS TO THE PROPERTY IF YOU DO NOT MAKE YOUR INTEREST AND PRINCIPAL PAYMENTS ON TIME.
ATTENTION: If you fail to fulfill or improperly fulfill your obligations, the lender will report this information to the Credit Bureau within 3 working days, where your credit history will be recorded. You have the right to obtain your credit history from the Credit Bureau once a year free of charge.
ATTENTION: A poor credit history may prevent you from obtaining loans in the future.
ATTENTION: In case of failure or improper fulfillment of obligations by the borrower, if the obligations under the collateral account are not fully repaid, the repayment of the remaining obligations may be carried out from other assets of the borrower.
2. The customer has the right to unilaterally terminate the loan agreement without any justification within 7 (seven) working days following its signing (“reflection period”) by returning the full loan amount received and paying interest calculated according to the annual effective interest rate specified in the agreement.
3. In the case of early repayment, the borrower’s total loan cost is proportionally reduced.
4. The customer has the right to repay obligations under the loan agreement early, regardless of whether such a right is explicitly stated in the loan agreement.
5. Loan interest is calculated based on the nominal interest rate and applies to the actual outstanding loan balance.
6. The loan is provided to the customer within a maximum of 1 working day after signing the loan agreement. If the loan obligations are secured by collateral requiring state registration, the loan is provided within a maximum of 2 working days after state registration of the collateral rights. To receive the loan, the customer must provide a statement/notice containing their bank/card account.
7. The Company may notify the customer about the loan provision decision via the Company’s office, phone call, or email.
8. On the scheduled loan disbursement date, the loan amount is transferred to the customer’s bank/card account.
9. After each loan is provided, the Company sends complete information about the loan to the Credit Bureau within a maximum of 3 working days and regularly updates current information throughout the loan’s term. Information submitted to the Credit Bureau includes essential loan terms, including amounts disbursed and repaid, disbursement and repayment dates, interest rate, risk category, overdue days, and more.
10. The customer has the right to communicate with the Company using their preferred method, including email or postal communication. Electronic communication is most convenient, available 24/7, avoids the risk of losing paper documents, and ensures confidentiality.
11. To compare loan types offered to individuals and select the most suitable option, visit the “Your Financial Guide” electronic platform at www.fininfo.am. This platform facilitates searching, comparing, and selecting the most efficient service option for individuals.
“Your Financial Guide” is an electronic platform designed to help individuals search, compare services offered to natural persons, and select the most efficient option tailored to their needs.
12. Disputes between the parties may be resolved in court, through arbitration operating in the Republic of Armenia, or via the Financial System Mediator (as established by the RA Law “On the Financial System Mediator”) at:
Address: 0010, Yerevan, M. Khorenatsi St., 15, “Elite Plaza” Business Center, 7th Floor
Email: [email protected]
Phone: +374 60 70 11 11
Fax: +374 10 58 24 21
However, “CUB CREDIT” UVC LLC has not waived the right to challenge the Financial System Mediator’s decisions in court. This means that in certain cases, the company may legally contest decisions made against it by the Financial System Mediator.
13. When the Company provides additional information regarding loan obligations (statements, certificates, etc.), the following fees apply:
Provision of Loan Account Statements (Copies) – Fees (Including VAT) | - Up to 30 days - free of charge - 31-365 days - 3,000 AMD - 366 days and more - 5,000 AMD The above fees do not apply if the right to receive the documents free of charge is provided by RA legislation. |
Provision of Documents | - For active loans, information is provided once per month per customer (borrower, guarantor(s), pledgor(s)) free of charge during the validity of the loan agreement. - If information is requested more than once per month per customer (borrower, guarantor(s), pledgor(s)), the fee is 3,000 AMD per provision (including VAT). |
No. | Service Description | Fee (AMD, including VAT) |
1․ | Any change to loan terms (if multiple terms are changed simultaneously, the fee is charged once) | 5,000 |
2․ | Change of collateral object | 20,000 |
3․ | Granting permission for any change to the collateral object, except for termination of collateral rights | 15,000 |
4․ | Granting permission to take a pledged vehicle outside the RA territory | 20,000 |
5․ | Termination of a guarantee during the loan term, or change of guarantor/co-borrower | 10,000 |
6․ | Response to an auditor’s inquiry | 10,000 |
The above fees may be changed or waived by the decision of the competent authority approving the respective loan.
The fees for the above services are not charged for obligations of deceased customers (including guarantors).
The fees for the above services are not charged for obligations of the Company’s employees, including those who have been dismissed.
If several transactions are carried out simultaneously (for example, changing the loan terms and changing the collateral object of a vehicle), the maximum fee established for the transactions is charged, unless otherwise required by the competent authority.
For all types of loans, interest is calculated daily on the actual outstanding balance. The calculated interest and principal can be repaid earlier than the scheduled dates without any restrictions.
ATTENTION:
- Loan interest is calculated based on the nominal interest rate. The annual effective interest rate (APR) shows how much you would need to pay in interest and other charges if the loan is repaid on time and in full according to the schedule. You can find the procedure for calculating the annual effective interest rate [here].
- For loans provided in foreign currency, changes in the exchange rate may affect loan repayments.
ATTENTION: If you fail to fulfill your obligations or perform them incompletely, the lender will send this information to the Credit Bureau within 3 working days, where your credit history will be formed. You have the right to obtain your credit history from the Credit Bureau free of charge once per year.
WARNING: A poor credit history may negatively affect your ability to obtain loans in the future.
For further details, suggestions, or complaints, you can contact or visit the headquarters of “CUBE CREDIT” UCO CJSC:
Address: Yerevan, Vardanansts St. 14/2, Apt. 34
Phone: +374 12 802 802
Email: [email protected]
Last updated on 09.03.2026
Customer Service Hours: 9:30 AM – 5:30 PM
Head Office: Address: 14/2 Vardanants Street, Apt. 34, Yerevan, Armenia
Phone: +374 12 802 802
Email: [email protected]
