• For those wishing to obtain personal financing against:

  - An undertaking to transfer the monthly installment amount from the employee's salary to the account of the Jordan Microfinance Company "Tamweelcom".

  - Financing secured by collateral (vehicles, real estate, or land), whereby the collateral is pledged as first-degree security in favor of the Jordan Microfinance Company.

• 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 non-dependent customer obtained financing worth 2,546,550 JOD from Tamweelcom Company, with the financing being repaid over 24 months with a decreasing/annual interest rate of 31.495%, which is equivalent to a fixed/annual interest rate of 18%.

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

Total interest value on financing = 916,758 JOD, plus 3% sales tax

The value of import stamps on the contract = 9 JOD

The value of a one-time credit granting commission = 35,466 JOD, plus 3% sales tax

Other services: “Sanad” insurance service upon customer request, subject to the company’s terms and conditions = 1.5 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 monthly installment for the first payment: 157,311 JOD

The value of the monthly installment for the remaining payments: 146,500 JOD original, including payment, interest, and sales tax on taxes

3. How is the effective interest rate (EIR) for financing determined?

The factory interest rate is determined by the following equation (EIR) = 1- 12(IRR+1)

The extent of its presence within the [internal rate of return (IRR)] is determined by Microsoft Excel using the (IRR) equation for the following success:-

In the value field: we enter the entire cash fractions (negative and future)

In the “Guess” field: (representing experience):  enter “zero”.

The result is = 0.02812

Which cost the monthly cost amount (monthly actual rate)

The target price (EIR) is considered by the internal compensation rate (IRR) in the following:

Exact manufacturing price  =  1- 12(IRR+1)

Industrial interest rate = 42.815%