Microfinance Loans in Jordan

Microfinance Loans in Jordan

Aug 20, 2018 by إيمان الحياري

There has been a lot of discussion lately about micro finance companies (MFIs) that finance micro, small and medium enterprises with amount that go up to 60,000 JOD in addition to financing individuals who do not have the opportunity to take a loan from a bank with amounts that go up to 2000 JOD/month.

Loans from MFIs are usually issued within a couple of days from the day the application is submitted.
The process of getting a loan is no more complicated with the existence of MFIs serving a large segment of beneficiaries in the different governorates. Thus, serving the national financial inclusion strategy of Jordan and participating in improving the economy of the country through serving women, young people and men with projects, shops and companies that generate revenues.

Central Bank of Jordan (CBJ) regulations regarding MFIs

In order to increase accountability, it was decided that MFIs work under the umbrella of the CBJ and so the law number 5 for the year 2015 was issued on December 14th 2014, and became officially valid to be used in June 2015. This law is to highlight the legal framework with regards to the best practices of MFIs in the different governorates of Jordan and so ensuring the customer’s protection and sustainability of projects.

A new department has been designed to ensure that all MFIs are registered in addition to ensuring that MFIs follow the newly issued law and regulations.

Micro-finance Companies

Now that we have presented some information about the regulations issued with regards to MFIs, It is worth mentioning that in 2007  an organization “Tanmeyah” has been developed to represent MFIs. Below is the list of MFIs registered in Jordan under the umbrella of Tanmeyah:

Vitas


Vitas is one of the unique MFIs financing loans for micro, small and medium enterprises in order to motivate Jordanians to have an effective role in the community. Vitas provides loans in a number of sectors including but not limited to: agriculture, education, real-estate, commercial, health and others

Tamweelcom


Tamweelcom serves both personal loans and business loans giving beneficiaries the opportunity to pay in monthly payments that are suitable to their monthly income. Beneficiaries can pay back their loans through e-fawateercom or by visiting any of Tamweelcom 10 branches spread across the country.

Al Amin


Al Amin is spread in a number of governorate including but not limited to: Sweileh, Hay Nazzaql, Al Mahatta, Al Zarqa and others whereas the head office is in Dabouq-Amman. Al Amin provides loans for personal reasons or to support small and medium enterprises (SMEs) to ensure sustainability and to participate in improving Jordanian’s monthly income. The amounts provided by Al Amin range from 300 to 5000 JOD for a payment period that goes up to 30 months in addition to serving both segments looking for traditional or Islamic loans.

These 3 MFIs work along with other 6 MFIs under Tanmeyah: Ethmar for Islamic finance, UNRWA, Microfund for Women, National Microfinance Bank, Ahli Microfinance Company and Finca.

If you are a business owner and you are looking for a loan to finance your small or medium company, or even if you are looking for a personal loan to cover some expenses, you can apply for free through Amwalcom by filling out this application form.

Finally, we quote from the CBJ regulations on registering MFIs where the purpose of the loans is to finance businesses in order to reduce poverty among Jordanians. However, before taking any loan you need to make sure that you have the capability to pay your monthly payments in order to avoid any financial challenges.

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