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
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%
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
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 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.
Example:-
A client received a JOD 800 loan for the third time from Tamweelcom, with a tenor of 12 months at a declining intrest rate/annual of 31.8% and which is equivalent to fixed interest rate/annual of 18%.
- What is the total interest rate paid for the loan?
Total interest rate for the loan = 144 JOD
Stamps duty on the Contract = 2 JOD
2. What is the monthly payment for the loan (principal, interest and sales tax on interest)?
First month payment amount: 79.32 JOD (Principal 57.562 JOD, interest 21.125 JOD and sales tax on interest 0.633 JOD)
The remaining monthly payments amount: 79 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 = 0.02782
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) = 39.000%
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
annual interest rate
for the first time: declining interest rate/annual of 38% which is equivalent to fixed interest rate 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%
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 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.
Example:-
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%.
- 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
2. What is the monthly payment for the loan (principal, interest and Sales tax on Interest)?
First month payment amount for group: 125.625 JOD (Principal 84.672 JOD, 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, interest 13.254 JOD and sales tax on interest 0.397 JOD)
The remaining monthly payments amount for group: 123 JOD (including principal payment, Interest and Sales tax on interest)
The remaining monthly payments amount per group member: 123÷ 3= 41 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: (represent the expected income) enter 0
IRR = 0.028
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) = 39.366 %