YEREVAN, November 4. /ARKA/. VTB Bank (Armenia) said today that individual entrepreneurs and legal entities can now apply for loans up to 200 million drams to develop their businesses.
According to a bank’s press release, the interest rate for loans in Armenian national currency, the dram is 14% or 11.5% for loans in Russian rubles (the effective interest rates are 15.4% and 12.6%, respectively).
The new type of loan is designed for small businesses operating in trade, services, manufacturing, construction and other areas. Loans can be used both for investment purposes and for the purchase of goods and raw materials, replenishment of turnover, or for mixed purposes. The borrowers can also use this loan to refinance their current loans at other banks.
Entrepreneurs can apply for loans from 10 to 200 million drams (or the equivalent in Russian rubles, but not more than 30 million rubles) for a fixed period of 60 months. The bank does not charge a commission for early repayment of the loan.
Upon request, the client can be provided with a 6-month grace period for the repayment of the principal amount, except for interests. The grace period is set according to a differentiated payment schedule or a seasonal schedule based on the specifics of the business.
According to VTB Bank (Armenia), this reduces the monthly financial burden of a borrower, which is especially important for the development of new projects and businesses.
“It is strategically important to us to develop services for entrepreneurs and create favorable conditions for small businesses. VTB Bank (Armenia) offers a line of credit products, based on market trends and customer needs, participates in the programs of the government to support small and medium-sized enterprises. In particular, we launched concessional loans jointly with the Ministry of Economy and the Investment Support Center Foundation,’ said Ara Avagyan, Corporate Business Development Director.
According to him, these services are in demand; currently the bank’s loan portfolio of small business totals 7.9 billion drams, and the number of borrowers in the small business segment has grown by 9% since the beginning of the year to 2.3 thousand enterprises.
‘We are confident that this new type of loan with a fixed five-year maturity without penalties for early repayment will also be in demand and will help companies to successfully develop their businesses,” he said.
Detailed information on the loan is available on the official website of VTB Bank (Armenia) at https://www.vtb.am/ru/business/business-credits-view/kredit-na-razvitie-biznesa, at its branches or by calling its Contact Center at 87-87.
The activities of VTB Bank (Armenia) CJSC are regulated by the Central Bank of Armenia. -0-
