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.
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 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 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 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
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
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