May 30, 2025

Armenia Agricultural Equipment Leasing Program Guide 2025

Armenia Agricultural Equipment Leasing Program - Complete Guide

Armenia's Agricultural Equipment Leasing Support Program

Access modern farming equipment with government-subsidized financing at just 2% annual interest rate

2% Interest Rate
Up to 10 Years
20% Down Payment

Program Overview

The Armenian government's agricultural equipment leasing program aims to modernize farming operations by providing accessible financing for essential agricultural machinery through subsidized leasing mechanisms.

Program Objectives

  • Increase mechanization levels in agriculture
  • Improve efficient use of agricultural land
  • Support commercial agricultural production
  • Enhance competitiveness and productivity

Program Impact

1,859
Agricultural machines delivered (2017-2021)
1,186
Farmers and operators benefited

Who Can Apply?

Individual Farmers

Physical persons engaged in agricultural activities who meet financial institution creditworthiness requirements

Agricultural Companies

Legal entities and organizations involved in agricultural production and processing

Communities & Cooperatives

Local communities and agricultural cooperatives seeking to modernize their farming operations

Basic Requirements

Financial Criteria:

  • Meet bank creditworthiness standards
  • Ability to make 20% down payment
  • Demonstrated agricultural activity

Program Compliance:

  • Use equipment for intended agricultural purposes
  • Maintain required insurance coverage
  • No existing program violations

Available Agricultural Equipment

Tractors

Various brands and models

Combines

Harvesting equipment

Seeders

Planting machinery

Mowers

Grass cutting equipment

Complete Equipment List

Primary Machinery:

  • • Tractors (various brands)
  • • Combines
  • • Balers
  • • Seeders

Cultivation Tools:

  • • Ploughs
  • • Cultivators
  • • Rotary tillers
  • • Mowers

Specialized Equipment:

  • • Potato planters/diggers
  • • Sprayers
  • • Tractor trailers
  • • Other agricultural machinery

Program Benefits & Payment Terms

Key Benefits

Subsidized Interest Rate
Pay only 2% annually (government covers up to 12%)
Special Rates for Veterans
0% interest for disabled veterans and border communities
Flexible Payment
Payment holidays up to 6 months per year
Full Insurance Coverage
KASKO insurance covered by financial institution

Payment Structure

Down Payment 20%
Of equipment purchase price
Annual Interest 2%
After government subsidy
Maximum Lease Amount 500M AMD
Per individual lessee

Lease Terms by Equipment Type

Equipment Type Lease Period Interest Rate
Combines 7-10 years 2% (0% for eligible)
Tractors 5-6 years 2% (0% for eligible)
Seeders, Balers 3-6 years 2% (0% for eligible)
Other Equipment 3 years 2% (0% for eligible)

How to Apply

1

Choose Equipment

Select the agricultural machinery that meets your farming needs

2

Contact Bank

Approach a participating financial institution for creditworthiness assessment

3

Submit Application

Complete the leasing application with required documentation

4

Receive Equipment

Upon approval, receive your subsidized agricultural equipment

Required Documentation

For Individuals:

  • Valid identification documents
  • Proof of agricultural activity
  • Financial statements and income verification
  • Down payment confirmation
  • Property/collateral documentation

For Organizations:

  • Company registration documents
  • Tax compliance certificates
  • Financial audit reports
  • Board resolutions and authorization
  • Business plan and projections

Ready to Get Started?

Contact participating financial institutions to begin your application process today!

Real-World Examples

Example 1: Small Farm Tractor Purchase

Equipment:
New tractor worth 15,000,000 AMD
Down Payment (20%):
3,000,000 AMD
Financed Amount:
12,000,000 AMD
Lease Term:
5 years
Annual Interest:
2%
Monthly Payment:
Approximately 210,000 AMD

Example 2: Combine Harvester for Large Farm

Equipment:
New combine worth 80,000,000 AMD
Down Payment (20%):
16,000,000 AMD
Financed Amount:
64,000,000 AMD
Lease Term:
8 years
Annual Interest:
2%
Monthly Payment:
Approximately 850,000 AMD

Cost Comparison: With vs Without Government Support

Financing Option Interest Rate Monthly Payment* Total Interest Paid
Government Program 2% 210,000 AMD 600,000 AMD
Traditional Bank Loan 12-14% 270,000 AMD 4,200,000 AMD

*For 15M AMD tractor over 5 years

Frequently Asked Questions

What types of agricultural equipment are covered?

The program covers new, unused agricultural equipment including tractors, combines, balers, seeders, ploughs, mowers, potato planters/diggers, cultivators, sprayers, and tractor trailers from recognized manufacturers.

Who qualifies for the 0% interest rate?

Farmers operating in border communities receiving social support and citizens who became disabled during military service or combat operations qualify for 0% annual interest rate instead of the standard 2%.

Can I take a payment break during the lease period?

Yes, lessees can request payment holidays for up to 6 months per year on both principal and interest payments, subject to agreement with the financial institution.

Is insurance required for the leased equipment?

Yes, KASKO insurance covering loss and damage risks is mandatory throughout the entire lease period. The insurance is paid by the financial institution as part of the program benefits.

What happens if I want to pay off the lease early?

There are no penalties for early repayment. You can pay off your lease at any time without additional fees, which can save you money on future interest payments.

How much equipment can one person lease under this program?

Each lessee can lease up to a maximum total value of 500 million AMD worth of agricultural equipment under the program across all their leasing contracts.

Which banks and financial institutions participate in this program?

Multiple financial institutions participate in the program. For the current list of participating banks and organizations, contact the program hotline at 81-40 or visit the official Ministry of Economy website.

Can I lease multiple pieces of equipment at the same time?

Yes, you can lease multiple pieces of equipment simultaneously. When leasing a tractor along with other agricultural equipment at the same time, the lease term can be extended to 5-6 years for the entire package.

Get Support & Information

Program Hotline

81-40

Call for consultation and guidance on the agricultural equipment leasing program

Official Website

Ministry of Economy

Access program details, participating financial institutions, and application forms

Program Documents

Full Legal Text

Download complete program regulations and legal framework

Start Your Agricultural Modernization Journey Today

Take advantage of this government-supported program to access modern farming equipment at unprecedented rates

Armenia Agricultural Equipment Leasing Program

Empowering farmers with accessible financing for modern agricultural equipment

2% Interest Rate
Flexible Terms
Full Insurance
Government Support

Disclaimer: The content on this page is provided for informational purposes only and does not constitute legal, financial, or professional advice.

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