Licensed Businesses

Financing licensed businesses (in operation for 1 year and more) with loan amount starting from 3,001 JOD to 75,000 JOD to finance working capital and/or fixed assets.

MICROPHONE

Voice over for Licensed businesses

Microphone

Loan Amount : 3,001 - 75,000 JOD

Microphone

Grace Period : Not applicable

Payment Date

Payment Date : 1st of each month

Loan Term

Loan Term : 3 - 48 Months (according to loan amount)

Fees

Fees : 1 JOD for each 1,000 JOD and its fraction for the loan amount between 3,001-10,000 JOD, and 1% One-time commission for granting credit for the loan amount between 3,001-75,000 JOD

Penalties

Penalties : 0.5 JOD per each day of delay for the loan amount between 3,001-10,000 JOD, 5 JOD per each day of delay for the loan amount between 10,001 – 75,000 JOD

Annual interest rate

Annual interest rate:

For the loan amount between 3,001 -5,000 JOD: declining interest rate/annual of 26.7% which is equivalent to fixed interest rate/annual of 15%

For the loan amount between 5,001 -10,000 JOD: declining interest rate/annual of 21.6% which is equivalent to fixed interest rate/annual of 12%

For the loan amount between 10,001 -75,000 JOD: declining interest rate/annual of 20.5% which is equivalent to fixed interest rate/annual of 11.4%

- Declining interest rate is indicative, the rate depends on the tenor of the loan.

Loan Purposes

Loan Purposes : Working capital / Fixed assets

Added Value Services

Added Value Services : Aman: free service where the outstanding balance of the client's loan is paid in case of the death of client and in case of disability according to the approved disability schedule

* Clients are applicaple for Tawasol loan (Additional Supporting loan for existing clients who obtained loan up to 10,000 JOD) as per the following:

- Minimum Loan Amount: 100 JOD     

- Maximum Loan Amount: 25% of the Basic loan amount and maximum 500 JOD

- Fixed monthly interest Rate: 2%

- Loan Term: 6-12 Months

* Age of the project should be 12 months and above 

* Targeted Segment is Licensed Micro and Small businesses including Commercial, Industrial, Service, productive Sectors, and vehicles used for business purposes.

* All kind of loans are subject to Stamps Fees Law and Sales Tax Law.

* Includes all persons as long as they are in full legal capacity and in line with the company’s policy and provisions.

* The company is obliged to grant funding only for legal purposes, and the fund is not granted for any kind of illegal purposes or purposes that entail environmental and social impact.

* Terms and conditions apply.

A client received a JOD 15,000 loan from Tamweelcom, with a tenor of 18 months and at a declining interest rate/annual of 20.583 % which is equivalent to fixed interest rate/annual of 11.4%.

1. What is the total interest rate paid for the loan?

Total interest rate for the loan = 2565 JOD

Stamps duty on the Contract = 45 JOD

One-time commission for credit granting = 150 JOD

2. What is the monthly payment for the loan (principal, interest and sales tax on interest)?

First month payment amount: 981.95 JOD (Principal 716.946 JOD, interest 257.295JOD and sales tax on interest 7.709JOD)

The remaining monthly payments amount: 980 JOD (Including principal payment, interest and sales tax on interest).

3. How to calculate the effective interest rate (EIR) for the loan

The effective interest rate (EIR) = (1+IRR)12 - 1

The Internal rate of return (IRR) calculated using Microsoft Excel by using the equation of IRR:

Value field: enter all the cash flows (plus and minus)

Guess field: (represent the expected income) enter 0

IRR = 0.01915

Which represent the Monthly Effective rate

The effective interest rate (EIR) calculated by substitute the IRR in the following equation:

The effective interest rate (EIR) = (1+IRR)12 - 1

The effective interest rate (EIR) = 25.556%

CREATE YOUR SUCCESS STORY WITH US, BE THE NEXT!

We here to help you make the best choice for the financing youneeds

Apply Now

Or

Contact our branches