• Family group financing is excluded from the above amount limits with a maximum of 800 JD per member, and up to 1,200 JD per member in the case of providing income evidence.
• A maximum two members with the same civil number may be accepted within a group of 3-7 members, and two other members with the same civil number may be accepted in the same group, according to the amounts within the group financing.
• The possibility of accepting all members, males or females or males and females.
• 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 binary group obtained financing worth 1,029.09 JOD from Tamweelcom Company, provided that the financing is to be repaid over 15 months and with an annual decreasing interest rate of 31.953%, which is equivalent to an annual fixed interest rate of 18%.

1. What is the value of the total interest accrued on the financing?

Total interest value accrued on the financing for the group:

The interest due before the first installment is due at (3.486) plus 3% sales tax

Total interest value on financing for the group = 231,546 JOD, plus 3% sales tax

The value of import stamps on the contract = 6 JOD

The value of a one-time credit granting commission = 20,291 JOD, plus 3% sales tax

Other services: “Sanad” insurance service upon customer request, subject to the company’s terms and conditions = 3 JOD per month

2. What is the value of the monthly installment that must be paid (principal, interest, and sales tax on the interest)

The value of the first payment for the group is 94,582 JOD

The value of the remaining payments for the group is 87 JOD (including the principal, interest, and sales tax on the 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 = 0.03802

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) = 54.911 %