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Green Finance

Targeting Licensed Micro and Small Businesses to finance fixed assets of energy-saving tools or technologies or that use alternative energy (including for example, solar panels, solar heaters, energy- or water-saving electrical devices, drip irrigation techniques, etc.) or financing electric vehicles for work purposes, so that the financing is disbursed directly to the supplier.

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Loan Amount : 1,000 - 75,000 JOD

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Grace Period : Not applicable

Payment Date

Payment Date : 1st of each month

Loan Term

Loan Term : 6 - 48 Months (according to loan amount)

One-time commission for credit granting

One-time commission for credit granting : 1%+10 JOD of granting credit for the loans amount between 1,000-10,000 JOD, and 1%+20 JOD of granting credit for the loans amount more than 10,000 JOD

Late payment commission

Late payment commission : 0.5JOD\day for monthly payment between 50-200 JOD, 1JOD\day for monthly payment between 200-400 JOD, 2JOD\day for monthly payment more than 400 JOD

Annual interest rate

Annual interest rate:

declining interest rate/annual of 16.468% which is equivalent to fixed interest rate/annual of 9%

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

Loan Purposes

Loan Purposes : Financing fixed assets such as energy-saving devices or technologies that use alternative energy (solar panels, solar water heaters, energy or water saving electrical devices, irrigation technologies,etc.) financing business-owned electrical vehicles

Insurance Solutions

Insurance Solutions : Customers' lives are insured through Sanad or Aman- based on the customer's request - according to the financing ceiling and in line with the terms and conditions of the services provided.

  • Age of the project should be:
    • For financing up to 5,000 Jordanian dinars (0) per month or more
    • For financing from - 5,000 - 10,000 Jordanian dinars (6) months or more
    • For financing amounts of more than 10,001 Jordanian dinars (12) months or more
  • Targeted Segment Licensed business owners classified as small or micro enterprises who wish to finance fixed assets such as energy-saving appliances or technologies that use alternative energy (such as solar panels, solar water heaters, energy-saving electrical appliances, water-saving devices, drip irrigation technologies, etc.) or finance electric vehicles used for commercial purposes through the supplier.
  • 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.
  • The company is an insurance agent for the Jordanian Insurance Company and its registration number with the Central Bank of Jordan is 0022/01/5/20

A client received a JOD 5,000 loan from Tamweelcom, with a tenor of 24 months at a declining intrest rate/annual of 16.468% and which is equivalent to fixed interest rate/annual of 9%.

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

Total interest rate for the loan = 900 JOD

Stamps duty on the Contract = 15 JOD

One-time commission for credit granting =60 JOD

Other services: “Sanad” insurance service upon customer request, subject to the company’s terms and conditions = 1.5 dinars per month

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

 First month payment amount: 270.500 JOD

The remaining monthly payments amount: 247.500 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: (represents the expected income): enter 0

IRR = 0.01599

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) = 20.972%

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