Retail Loans

Retail Financing Segment

The Retail Financing Segment is served through a variety of products designed to improve the living standard of the average unbanked citizen. Through this segment, we provide personal, educational and group financing products to cover the necessities of a sustainable life for all individuals.

TYPES OF RETAIL LOANS:

Retail Loans
Financing different puposes to improve quality of life and meeting various indiviual needs .
Feature
  • Loan Amount

    300 – 2,000 JOD

    Fixed monthly interest rate

    1.9% for the first time

    1.75% in case of renew for the second time

    1.5% in case of renew for the 3rd time or more

    Loan Term

    6 - 24 months

    Grace Period

    Not applicable

    Payment Date

    1st of each month

    Fees

    1 JOD for each 1,000 JOD and its fraction

    Loan Purposes

    Social needs (Marriage, Education, Car Maintenance, Home Improvement & Health)

    Supporting loans 

    Individual connection 25% of the loan amount and maximum 500 JOD

    Penalties

    0.5 JOD per each day delay

    Age

    18-65 Years old

    Gender

    Both Male and Female

    Nationality

    Jordanian and people from Gazza according to the policy

    Added Value Services

    Aman Insuranc: Life, and total and partial disability free insurance

    Sanad Insurance: Compensation due to loss of client's income during hospitalization

    Payment Channels

    Tamweelcom Branches

    E-fawateercom service

    Required Documents

    Personal ID Card

    Family members ID card

    Other documents might be requested according to the purpose of loan

    Example:-

    A client received a JOD 800 loan for the first time from Tamweelcom, with a tenor of 12 months and fixed monthly interest rate of 1.9%

    1- What is the total fixed interest rate paid for the loan?

    Total fixed interest rate for the loan: (800*1.9%*12) = 182.4 JOD

     

    2- What is the monthly payment for the loan (principal and fixed interest rate)?

    First month payment amount: 80.4 JOD (Principal 63, Fixed monthly interest rate: 17.4)

    The remaining monthly payments amount: 82 JOD (Principal 67, Fixed monthly interest rate: 15)

     

    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 = 0.03326

    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) = (1+0.03326)12 – 1= 48.094%

     

Group Loans
Financing a group of women, from 2 to 7 members, to establish or/and develop a home based business.
Feature
  • Loan Amount

    From 200-1,000 JOD for each member  

    Fixed monthly interest rate

    1.9% for the first time

    1.75% in case of renew for the second time

    1.5% in case of renew for the 3rd time or more

    Loan Term

    12-18 months 

    Grace Period

    Not applicable

    Payment Date

    1st of each month

    Supporting Loans

    Group Connection, 25% of the loan amount and maximum 500 JOD for the whole group

    Fees

    1 JOD for each 1,000 JOD and its fraction

    Loan Purposes

    Social needs (Marriage, Education, Car Maintenance, Home Improvement & Health)

    Penalties

    0.5 JOD per each working day delay

    Age

    18-65 Years old

    Gender

    Female Only 

    Nationality

    Jordanian and people from Gazza according to the policy

    Added Value Services

    Aman Insuranc: Life, and total and partial disability free insurance

    Sanad Insurance: Compensation due to loss of client's income during

    Payment Channels

    Tamweelcom Branches

    eFawateercom service

    Required Documents

    Personal ID Card

    Family members ID card

    Other documents might be requested according to the purpose of loan

     

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

    Example:-

    A group of 3 women, one of them is renewed for the third time, the group is received a JOD1,500 loan, one of the group member received a loan for the third time from Tamweelcom, the share of each member being JOD 500, with a tenor of 15 months and fixed monthly interest rate of 1.5%

    1- What is the total fixed interest rate paid for the loan?

                Total Fixed interest rate for group: (1500*1.5%*15) = 337.5 JOD

    Total Fixed interest rate per group member: (500*1.5%*15) = 112.5 JOD

    2- What is the monthly payment for the loan (principal and fixed interest rate)?

    First month payment amount for group: 129.5 JOD (Principal 100, Fixed monthly interest rate: 29.5)

    First month payment amount per group member: 129.5÷ 3= 43.2 JOD (Principal 33.3, Fixed monthly interest rate: 9.8)

    The remaining monthly payments amount for group: 122 JOD (Principal 100, Fixed monthly interest rate: 22)

    The remaining monthly payments amount per group member: 122÷ 3= 40.6 JOD (Principal 33.3, Fixed monthly interest rate: 7.3)

    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 = 0.02680

    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) = (1+0.02680)12 – 1= 37.354  %