Retail Financing Segment
Retail loans are designed to provide clients with financing for the necessities of a sustainable lifestyle of the target audience.
Retail Loans
TYPES OF RETAIL LOANS:
Individual Loans
Individual loans are designed to provide clients with financing for the necessities of a sustainable lifestyle through financnig the following social needs (Home improvements, Education, Healthcare , Marriage, Car Maintenance and Energy system).
Feature
Loan Amount
300 – 2,000 JOD
Fixed monthly interest rate
1.9% for the first time
1.75% in case of renew for the second time
1.5% in case of renew for the 3rd time or more
Loan Term
6 - 24 months
Grace Period
Not applicable
Payment Date
1st of each month
Fees
1 JOD for each 1,000 JOD and its fraction
Loan Purposes
Social needs (Marriage, Education, Car Maintenance, Home Improvement & Health)
Supporting loans (Tawasol)
Minimum Loan Amount: 75 JOD
Maximum Loan Amount: 25% of the Basic loan amount and maximum 500 JOD
Fixed monthly interest Rate: 2%
Loan Term: 6-12 Months.
Penalties
0.5 JOD per each day of delay
Age
18-65 Years old
Gender
Both Male and Female
Nationality
Jordanian and people from Gazza according to the policy
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 total and partial disability according to the approved disability schedule
Payment Channels
Tamweelcom Branches
E-fawateercom service
Required Documents
Personal ID Card
Family members ID card
Other documents might be requested according to the purpose of loan
* All kind of loans are subjet to Stamps Fees law and Sales Tax law.
*The company is obliged to grant funding only for legal purposes, and the fund is not granted for any kind of illegal purposes or the purposes that have environmental and social risks.
Example:-
A client received a JOD 800 loan for the first time from Tamweelcom, with a tenor of 12 months and fixed monthly interest rate of 1.9%
- What is the total fixed interest rate paid for the loan?
Total fixed interest rate for the loan: (800*1.9%*12) = 182.4 JOD
Stamps duty on the Contract = 2 JD
2. What is the monthly payment for the loan (principal, Monthly interest and sales tax on interest)?
First month payment amount: 85.872 JOD (Principal 58.532, Monthly interest 26.543 JOD and sales tax on interest 0.797 JOD)
The remaining monthly payments amount: 82 JOD (Including principal payment, Monthly interest and sale 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: (represent the expected income): enter 0
IRR = 0.034815
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) = (1+0.034815)12 – 1= 50.783%
Group Loans
Designed for women only. Meant for group financing needs (2-7 members) to establish and/or develop a home-based business.
Feature
Loan Amount
From 200-1,000 JOD for each member
Fixed monthly interest rate
1.9% for the first time
1.75% in case of renew for the second time
1.5% in case of renew for the 3rd time or more
Loan Term
12-18 months
Grace Period
Not applicable
Payment Date
1st of each month
Supporting Loans (Tawasol)
Minimum Loan Amount: 150 JOD for the group (Each member's share should be at least 75 JOD)
Maximum Loan Amount: 25% of the Basic loan amount and maximum 500 JOD for the group
Fixed monthly interest Rate: 2%
Loan Term: 6-12 Months.
Fees
1 JOD for each 1,000 JOD and its fraction
Loan Purposes
Social needs (Marriage, Education, Car Maintenance, Home Improvement & Health)
Penalties
0.5 JOD per each day of delay
Age
18-65 Years old
Gender
Female Only
Nationality
Jordanian and people from Gazza according to the policy
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 total and partial disability according to the approved disability schedule
Payment Channels
Tamweelcom Branches
eFawateercom service
Required Documents
Personal ID Card
Family members ID card
Other documents might be requested according to the purpose of loan
* All kind of loans are subjet to Stamps Fees law and Sales Tax law.
* The company is obliged to grant funding only for legal purposes, and the fund is not granted for any kind of illegal purposes or the purposes that have environmental and social risks.
Example:-
A group of 3 women, one of them is renewed for the third time, the group is received a JOD1,500 loan, one of the group member received a loan for the third time from Tamweelcom, the share of each member being JOD 500, with a tenor of 15 months and fixed monthly interest rate of 1.5%
- What is the total fixed interest rate paid for the loan?
Total Fixed interest rate for group: (1500*1.5%*15) = 337.5 JOD
Total Fixed interest rate per group member: (500*1.5%*15) = 112.5 JOD
Stamps duty on the Contract = 6 JD
2. What is the monthly payment for the loan (principal, Monthly interest and Sales tax on Interest)?
First month payment amount for group: 125.625 JOD (Principal 84.672 JOD, Monthly interest 39.762 JOD and sales tax on interest 1.191 JOD).
First month payment amount per group member: 125.625÷ 3= 41.875 JOD (Principal 28.224 JOD, monthly interest 13.254 JOD and sales tax on interest 0.397 JOD)
The remaining monthly payments amount for group: 123 JOD (Covering principal payment, Interest and Sale tax on interest)
The remaining monthly payments amount per group member: 123÷ 3= 41 JOD (Covering principal payment, Interest and Sale 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: (represent the expected income) enter 0
IRR = 0.02847
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) = (1+0.02847)12 – 1= 39.366 %