Loan Amount  Amount Of Stamp Fees
1 – 499 1 JD
500 – 1000 2 JD
2000 6 JD
3000 9 JD
4000 12 JD
5000 15 JD
6000 18 JD
7000 21 JD
 8000 24 JD
9000 27 JD
10,000 30 JD
11,000 33 JD
12,000 36 JD
13,000 39 JD
14,000 42 JD
15,000 45 JD
16,000 48 JD
17,000 51 JD
18,000 54 JD
19,000 57 JD
20,000 60 JD
21,000 63 JD
22,000 66 JD
23,000 69 JD
24,000  72 JD
25,000 75 JD
26,000 78 JD
27,000 81 JD
28,000 84 JD
29,000 87 JD
30,000 90 JD
31,000 93 JD
32,000 96 JD
33,000 99 JD
34,000 102 JD
35,000 105 JD

Transaction
  Amount Of  Fees
Confirmation of Debt or Commitment Certificate 5 JOD
Clearance Letter 5 JOD
Withdraw / Stop bank check 5 JD + bank commission
Letter for Check settlement 2 JOD
Postponing Loan’s payment
  •  2.5 JD: if the payment is less than 50 JOD
  • 5 JD: if the payment is from 50 -150 JD
  • 10 JD: if the payment is more than 150 JD
Statement based on client’s request 1 JOD
Request to amend financing conditions or guarantees upon client request 5 JOD
Issuing a deduction letter for other parties 5 JOD
Mortgage Release 5 JOD
Early settlement
Remaining period on the maturity of the last installment (3 months or less).  No commission
Remaining period on the maturity of the last installment (more than 3 months). 2% on the Repayment amount
Request to repay the debt through another financing entity regardless of the period remaining on the maturity of the last installment.  5% on the Repayment amount
Commission for granting credit (for one time upon issuance)
  • 1% of the credit value: if the credit value is less than 1000 JOD
  • 1% of the credit value + 10 JOD: if the credit value is from 1000-10000 dinars
  • 1% of the credit value + 20 JOD: if the credit value is more than 10000 JOD
Late payment
  • 0.25 JOD if the payment is less than 50 dinars
  • 0.5 JOD if the payment is between 50 – 200 JOD
  • 1 JOD if the payment is exceeds 200 – 400 JOD
  • 2 JOD for payments exceeds 400 JOD

Example:
A client applied for an application loan in amount JD 2000 from FINCA Microfinance Company, the loan will be repaid over period of 12 months, declining interest rate / annual interest rate of 31%, which is equivalent to the fixed / annual interest rate of 18.7%

What is the total amount of the interest that will be charged on the loan?
Total amount of the interest charged to the loan = JD 374.516
The amount of the stamp duty on the loan contract = JD 6

What is the amount of the monthly installment that have to be paid (principal and interest amount?)
Amount of the first monthly installment which include the calculation of the interest based on the declining methodology as per the below clarification:
– Principal amount : JD (117.048)
– In addition to client life insurance fees JD ( 7.8)
– Amount of the monthly interest : JD 91.726
**** Total amount of the first installment JD 217
The amount of the rest of the monthly installment JD 217 including principal and interest amount

How to calculate the effective interest rate (ERI)
The effective interest is calculated based on the following formula (EIR) = 1- 12(IRR+1)
The [Internal rate of return (IRR)] is calculated through Microsoft Excel program by using (IRR) formula as below:
In the field Value: insert total amount of the cash flow (positive / negative)
In the field Guess: insert (0) which represent expected return, and
Add the below figures:
1- sales tax 3% of the amount of the total interest and upfront fee.
2- Stamp fee.
3- Client life insurance.
4- Credit granting commission 1% of the loan amount.
The result will be IRR=0.02833
Which represent the (Monthly Effective rate)
The effective interest rate is calculated by representing the Internal rate of return (IRR) as per the below formula:
Amount of the effective interest = 1 – 12(IRR+1)
Effective interest rate = 39.83%