• 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 1,023.500 loan from Tamweelcom, with a tenor of 24 months at a declining intrest rate/annual of 26.96% and which is equivalent to fixed interest rate/annual of 15%.

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

Total interest rate for the loan = 307.05 JOD

Stamps duty on the Contract = 6 JOD

One-time commission for credit granting =20.235 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: 76.262 JOD

The remaining monthly payments amount: 56.500 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 = 0.02812

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) = 39.482%