Retail Financing
Retail loans are designed to provide clients with financing for the necessities of a sustainable lifestyle of the target audience.
Retail Financing
Retail loans are designed to provide clients with financing for the necessities of a sustainable lifestyle of the target audience.
TYPES OF RETAIL LOANS:
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 (according to loan amount) |
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 (Home improvements, Education, Healthcare, Marriage, Vehicles licensing and Maintenance, and Energy system) |
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 in case of disability according to the approved disability schedule |
Payment Channels |
Tamweelcom Branches |
eFAWATEERcom service |
|
Required Documents |
Personal ID Card |
Family book |
|
Other documents might be requested |
|
Tawasol loan (Additional Supporting loan for existing clients) |
Minimum Loan Amount: 100 JOD Maximum Loan Amount: 25% of the Basic loan amount and maximum 500 JOD Fixed monthly interest Rate: 2% Loan Term: 6-12 Months |
*Declining interest rate is indicative, the rate depends on the tenor of the loan.
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 31.7% and which is equivalent to fixed interest rate/annual of 18%.
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%
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 (according to loan amount) |
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 (Home improvements, Education, Healthcare, Marriage, Vehicles licensing and Maintenance, and Energy system), and for unregistered or startup or existing business that needs loan amount less than 1,000 JOD. |
Penalties |
0.5 JOD per each day of delay |
Age |
18-65 Years old |
Gender |
Female/male |
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 in case of disability according to the approved disability schedule |
Payment Channels |
Tamweelcom Branches |
eFAWATEERcom service |
|
Required Documents |
Personal ID Card |
Family book |
|
Other documents might be requested |
|
Tawasol loan (Additional Supporting loan for existing clients) |
Minimum Loan Amount: 100 JOD for each member Maximum Loan Amount: 25% of the Basic loan amount for member share with maximum 250 JOD for each member Fixed monthly interest Rate: 2% Loan Term: 6-12 Months |
*Declining interest rate is indicative, the rate depends on the tenor of the loan.
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%.
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 %