Loan Information
FINCA Jordan Loan Information.
| 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 | from 38 % – 42 % Annual declining | • Commission for granting credit: – Less than 1,000 JD, 1% of the loan (deducted from the total loan amount). – 1,000 – 2,000 JD, 1% + 10 JOD of the loan (deducted from the total loan amount).• Stamp fee and sales tax will also be deducted as per respective calculations. • Import stamps + Life Insurance • Sales tax of 3% |
• 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 between 200 – 400 JOD • 2 JOD for payments exceeds 400 JOD |
From 48.3 % – 56.42 % It’s depending on loan duration and amount. |
| 1,001-2,000 JD | from 35 % – 39 % Annual declining | From 45 % 54.88 % 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 36 % – 40 % % Annual declining | • Commission for granting credit: – Less than 1,000 JD, 1% of the loan (deducted from the total loan amount). – 1,000 – 2,000 JD, 1% + 10 JOD of the loan (deducted from the total loan amount).• Stamp fee and sales tax will also be deducted as per respective calculations. • Import stamps + Life Insurance • Sales tax of 3% |
• 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 between 200 – 400 JOD • 2 JOD for payments exceeds 400 JOD |
From 45.35 % – 53.31 % It’s depending on loan duration and amount. |
| 1,001-2,000 JD | from 35 % – 39 % Annual declining | From 45 % – 54.88 % It’s depending on loan duration and amount. |
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| Experience Loan | 2,001-5,000 JD | Up to 36 months | from 30 % – 31 % Annual declining | • Commission for granting credit: -1% + 10 JOD of the loan (deducted from the total loan amount)• Stamp fee and sales tax will also be deducted as per respective calculations • Import stamps + Life Insurance • Sales tax of 3% |
• 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 between 200 – 400 JOD • 2 JOD for payments exceeds 400 JOD |
From 37.36 % – 40.59 % It’s depending on loan duration and amount. |
| 5,001-10,000 JD | up to 48 months | 27 % – 31 % Annual declining | From 32.94% – 38.93 % It’s depending on loan duration and amount. |
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| Household Needs Loans (GROUP) | 300-1500 JD | Up to 36 months | from 41 % – 45 % Annual declining | • Commission for granting credit: – Less than 1,000 JD, 1% of the loan (deducted from the total loan amount). -1,000 – 2,000 JD, 1% + 10 JOD of the loan (deducted from the total loan amount).• Stamp fee and sales tax will also be deducted as per respective calculations. • Import stamps + Life Insurance • Sales tax of 3% |
• 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 between 200 – 400 JOD • 2 JOD for payments exceeds 400 JOD |
From 52.84 % – 63.41 % It’s depending on loan duration and amount. |
| Household Needs Loans (INDIVIDUAL) | 300-2,000 JD | from 41 % – 45 % Annual declining | From 52.84 % – 63.41 % It’s depending on loan duration and amount. |
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| Trust Loan- HNL(GROUP/INDIVIDUAL) | 300-3,000 JD | Up to 48 months | 38% Annual declining | • Commission for granting credit: – Less than 1,000 JD, 1% of the loan (deducted from the total loan amount) – 1,000 – 3,000 JD, 1% + 10 JOD of the loan (deducted from the total loan amount)• Stamp fee and sales tax will also be deducted as per respective calculations. • Import stamps + Life Insurance • Sales tax of 3% |
• 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 between 200 – 400 JOD • 2 JOD for payments exceeds 400 JOD |
Group – From 48.37 % – 51.28 % Individual – From 48.37 % – 52.30 % It’s depending on loan duration and amount. |
| Trust Loan (INDIVIDUAL) | 300-1,000 JD | Up to 48 months | 33% Annual declining | • Commission for granting credit: – Less than 1,000 JD, 1% of the loan (deducted from the total loan amount) – 1,000 –3,000 JD, 1% + 10 JOD of the loan (deducted from the total loan amount).• Stamp fee and sales tax will also be deducted as per respective calculations. • Import stamps + Life Insurance • Sales tax of 3% |
• 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 between 200 – 400 JOD • 2 JOD for payments exceeds 400 JOD |
From 40.78 % – 42.88 % It’s depending on loan duration and amount. |
| 1001-3,000 JD | 32% Annual declining | From 39.67 % – 42.4 % It’s depending on loan duration and amount. |
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| Trust Loan (GROUP) | 300-1,000 JD | Up to 48 months | 35% Annual declining | • Commission for granting credit: – Less than 1,000 JD, 1% of the loan (deducted from the total loan amount). – 1,000 –3,000 JD, 1% + 10 JOD of the loan (deducted from the total loan amount).• Stamp fee and sales tax will also be deducted as per respective calculations. • Import stamps + Life Insurance • Sales tax of 3% |
• 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 between 200 – 400 JOD • 2 JOD for payments exceeds 400 JOD |
From 43.65 % – 45.80 % It’s depending on loan duration and amount. |
| 1001-3,000 JD | 32% Annual declining | From 39.67 % – 42.4 % It’s depending on loan duration and amount. |
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| Business Support Loan | 5,000 – 25,000 JD | Up to 42 months, including a grace period of up to 12 months maximum. | 9% interest rate, 5% on the client, 4% is funded by the government | No fees and Commissions | No Fines | From 5.12 % – 5.14 % It’s depending on loan duration and amount. |
| Amount Of Stamp Fees | Loan Amount |
|---|---|
| 1 JD | For loans less than five hundred dinars |
| 2 JD | For loans amounting to five hundred dinars and not exceeding one thousand dinars. |
| 3 JD | For every one thousand dinars or any fraction thereof. |
| 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%
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%