Loan Product | Amount | Term | Average Interest Rate (%) | Fees and Commissions | Fines | Effective Interest Rate (EIR) |
---|---|---|---|---|---|---|
Woman’s Solidarity Loan – Commercial | 300-1,000 JD | Up to 36 months | from36 % – 42 % annual declining |
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|
From 45.04 % – 58.55 % It’s depending on loan duration and amount. |
1,001-2,000 JD | Up to 36 months | from 33 % – 39 % annual declining * |
From 40.35 % 50.28 % It’s depending on loan duration and amount. |
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Commercial Micro Loan – Individual | 300-1,000 JD | Up to 36 months | from 34 % – 40 % % annual declining |
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From 42.15 % – 55.39 % It’s depending on loan duration and amount. |
1,001-2,000 JD | Up to 36 months | from 33 % – 39 % annual declining | From40.35 % – 50.28 % It’s depending on loan duration and amount. |
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Experience Loan | 2,001-5,000 JD | Up to 36 months | from 28 % – 31 % annual declining |
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From 34.53 % – 40.02 % It’s depending on loan duration and amount. |
5,001-10,000 JD | up to 48 months | 25 % – 28 % annual declining | From30.5 % – 35.83 % It’s depending on loan duration and amount. |
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Household Needs Loans (GROUP) | 300-1500JD | Up to 36 months | from 39 % – 45 % annual declining |
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From 49.19 % – 63.39 % It’s depending on loan duration and amount. |
Household Needs Loans (INDIVIDUAL) | 300-2,000 JD | Up to 36 months | from 39 % – 45 % annual declining |
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From 49.06 % – 63.84 % It’s depending on loan duration and amount. |
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Trust Loan- HNL(GROUP/INDIVIDUAL) | 300-2,500 JD | up to 48 months | 36%annual declining |
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|
From 44.64 % – 49.25 %
From 44.64 % – 46.93 % |
Trust Loan (GROUP) | 300-1,000 JD | up to 48 months | 33%annual declining
. |
|
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From 40.73 % – 44.79 % It’s depending on loan duration and amount. |
1001-2,500 JD | up to 48 months | 30%annual declining |
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. |
From 36.17 % – 37.26 % It’s depending on loan duration and amount. |
|
Trust Loan (INDIVIDUAL) | 300-1,000 JD | up to 48 months | 31%annual declining |
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From 37.92 % – 41.89 % It’s depending on loan duration and amount. |
2,500-1,001 JD | up to 48 months | 30%annual declining | From 36.17 % – 37.26 % It’s depending on loan duration and amount.” | |||
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 |
|
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) |
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Late payment |
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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%