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Revolving Finance

A credit line granted to Licensed Micro and Small Business to finance their needs and purchases from working capital and/or fixed assets. The customers can access funds from the line of credit at any time as long as they do not exceed the maximum amount (credit limit) set in the agreement and meet any other requirements.

MICROPHONE

Voice over for Revolving finance

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Loan Amount : 10,001 - 75,000 JOD

Microphone

Grace Period : Not applicable

Payment Date

Payment Date : 1st of each month

Loan Term

Loan Term : 3 - 24 Months (according to loan amount)

One-time commission for credit granting

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

Late payment commission

Late payment commission : 1JOD\day for monthly payment between 200-400 JOD, 2JOD\day for monthly payment more than 400 JOD each utilization (withdraw)

Annual interest rate

Annual interest rate:

Declining interest rate/annual of 20.5% which is equivalent to fixed interest rate/annual of 11.4%

Interest rate of the utilized amount is according to the interest rate for the granted credit line.

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

Loan Purposes

Loan Purposes : Working capital and/or 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

* 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 got a revolving loan with a credit line (limit) by amount of 50,000 JOD from Tamweelcom, and with a tenor of 12 months for each utilized (withdraw) amount and at a declining interest rate/annual of 20.5% which is equivalent to fixed interest rate/annual of 11.4%.

The client utilized (withdraw) 40,000 JOD from the granted limit with a tenor of 12 months

Stamps duty on the Contract  = 170 JOD

1. What is the total interest rate paid for the above utilization (withdraw)?

Total interest rate for the above utilization (withdraw) = 3,420 JOD

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

irst month payment amount for the above utilization (withdraw): 4,842.6 JOD (Principal 4,153.655 JOD, interest 668.889 JOD and sales tax on interest 20.056 JOD)

The remaining monthly payments amount for the above utilization (withdraw): 4,835 JOD (Including principal payment, interest and sales tax on interest).

3. How to calculate the effective interest rate (EIR) for the above utilization (withdraw)

    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 = 0.02022

    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) = 27.156%

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