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Purchasing Finance

Targets Licensed Micro and Small Businesses to finance their purchases of raw materials and/or goods, and/ fixed assets, and/or business-owned vehicles, therefore loan amount is paid to the vendor as per the client request

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Voice over for Purchasing Finance

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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 - 72 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:

Amounts (JOD 1,000 – 3,000): Declining interest rate/annual of (31.6%) which is equivalent to fixed interest rate/annual of 18%

 Amounts (JOD 3,001 – 5,000):  Declining interest rate/annual of (26.7%) which is equivalent to fixed interest rate/annual of 15%

 Amounts (JOD 5,001 – 10,000):  Declining interest rate/annual of (21.5%) which is equivalent to fixed interest rate/annual of 12%

 Amounts (JOD 10,001 – 75,000):  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 : Financing the business purchases of raw materials, and/or goods, and/or fixed assets. Financing Business-owned vehicles/scooters. Financing telecommunication services and technology and information technology services, and business digitalization. Fina

Added Value Services

Added Value Services : Customers' lives are insured through a bond or security service - 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 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.

  •  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 50,000 loan from Tamweelcom, with a tenor of 12 months and at a declining interest rate/annual of 20.4% 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 = 5,700 JOD

Stamps duty on the Contract = 150 JOD

One-time commission for credit granting = 520

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

First month payment amount: 4,655 JOD (Principal 3,779.62 JOD, interest 849.9 JOD and sales tax on interest 25.479 JOD)

The remaining monthly payments amount: 4,656 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 = 0.01970

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) = 26.371%

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