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Group loans

Group loans are designed to provide clients with financing for the necessities of a sustainable lifestyle through financing the following social needs (Home improvements, Education, Healthcare, Marriage, Vehicles licensing and Maintenance).

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Loan Amount : 300-1,400 JOD for each member

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Grace Period : Not applicable

Payment Date

Payment Date : 1st of each month

Loan Term

Loan Term : 6 - 30 Months (according to loan amount)

One-time commission for credit granting

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

Late payment commission

Late payment commission : 0.25JOD/day for monthly payment less than 50 JOD, 0.5JOD/day for monthly payment between 50-200 JOD, 1JOD/day for monthly payment between 200-400 JOD

Annual interest rate

Annual interest rate:

For the first time Declining interest rate/annual of 38% which is equivalent to fixed interest rate/annual of 22.8%

In case of renew for the second time: declining interest rate/annual of 35.8%  which is equivalent to fixed interest rate/annual of 21%

In case of renew for the 3rd time or more: declining interest rate/annual of 31.8%  which is equivalent to fixed interest rate/annual of 18%

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

Loan Purposes

Loan Purposes : Social needs (Home improvements, Education, Healthcare, Marriage, Vehicles licensing and Maintenance) For the purposes of creating and developing projects.

Insurance Solutions

Insurance Solutions : Customers' lives are insured through a bond or security service - based on the customer's request - and according to the terms and conditions of the services provided.

  • 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 group of 3 women, one of them is renewed for the third time, the group is received a JOD1,500 loan from Tamweelcom, the share of each member being JOD 500, with a tenor of 15 months and at a declining interest rate/annual of 31.8% which is equivalent to fixed interest rate/annual of 18%.

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

Total interest rate for group = 337.5 JOD

Total interest rate per group member = 112.5 JOD

Stamps duty on the Contract = 6 JOD

One-time commission for credit granting = 25 JOD

Other services: “Sanad” insurance service upon customer request, subject to the company’s terms and conditions = 6.5 dinars per month

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

First month payment amount for group: 132.125 JOD

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) = 56.666 %

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