List of returns and fees
|
Financing type |
Nominal return rate |
Financing value |
Repayment period |
General sales tax (from the value of the return on financing) |
revenue stamp |
||
|
(annual) |
(JD) |
(Monthly ) |
(JD) |
||||
|
Financing existing projects (my business) |
%11.76 |
200 - 25,000 |
6 - 36 months |
3 % |
One dinar for amounts less than 500 dinars |
Two dinars for amounts from 500 to less than 1000 dinars |
3 per thousand for every 1,000 dinars for amounts exceeding 1,000 dinars |
|
Financing projects under construction (my start) |
%15.60 |
200 - 10,000 |
4 - 36 months |
3 % |
One dinar for amounts less than 500 dinars |
Two dinars for amounts from 500 to less than 1000 dinars |
3 per thousand for every 1,000 dinars for amounts exceeding 1,000 dinars |
|
Financing home projects (home project) |
%18.00 |
200 - 3,000 |
4 - 36 months |
3 % |
One dinar for amounts less than 500 dinars |
Two dinars for amounts from 500 to less than 1000 dinars |
3 per thousand for every 1,000 dinars for amounts exceeding 1,000 dinars |
|
Financing personal needs (my needs) |
%22.08 |
200 - 3000 |
4 - 36 months |
3 % |
One dinar for amounts less than 500 dinars |
Two dinars for amounts from 500 to less than 1000 dinars |
3 per thousand for every 1,000 dinars for amounts exceeding 1,000 dinars |
|
Home improvement financing |
%18 |
200 - 4,000 |
4 - 36 months |
3 % |
One dinar for amounts less than 500 dinars |
Two dinars for amounts from 500 to less than 1000 dinars |
3 per thousand for every 1,000 dinars for amounts exceeding 1,000 dinars |
|
Financing my energy |
%18 |
500 - 5,000 |
6 - 36 months |
3 % |
One dinar for amounts less than 500 dinars |
Two dinars for amounts from 500 to less than 1000 dinars |
3 per thousand for every 1,000 dinars for amounts exceeding 1,000 dinars |
|
Financing my clinic |
12% |
200 - 8,000 |
6 - 36 months |
3 % |
One dinar for amounts less than 500 dinars |
Two dinars for an amount ranging from 500 to less than 1000 dinars |
3 per thousand for every 1,000 dinars for amounts exceeding 1,000 dinars |
|
Financing my health |
22% |
200 - 5,000 |
6 - 36 months |
3 % |
One dinar for amounts less than 500 dinars |
Two dinars for amounts from 500 to less than 1000 dinars |
3 per thousand for every 1,000 dinars for amounts exceeding 1,000 dinars |
|
Financing my farm |
20% |
200 - 3,000 |
6 - 24 months
|
3 % |
One dinar for amounts less than 500 dinars |
Two dinars for amounts from 500 to less than 1000 dinars |
3 per thousand for every 1,000 dinars for amounts exceeding 1,000 dinars |
|
Financing my car
|
10% |
200 - 9000 |
Up to 48 months |
3 % |
One dinar for amounts less than 500 dinars |
Two dinars for amounts from 500 to less than 1000 dinars |
3 per thousand for every 1,000 dinars for amounts exceeding 1,000 dinars |
|
Financing my workshop |
%22 |
200 - 3,000 |
6 - 36 months
|
3 % |
One dinar for amounts less than 500 dinars |
Two dinars for amounts from 500 to less than 1000 dinars |
3 per thousand for every 1,000 dinars for amounts exceeding 1,000 dinars |
|
Licensed home projects |
6 % |
200 - 5000
|
6 - 48 months
|
3 % |
One dinar for amounts less than 500 dinars |
Two dinars for amounts from 500 to less than 1000 dinars |
3 per thousand for every 1,000 dinars for amounts exceeding 1,000 dinars |
An illustrative example of how to calculate the effective rate of return
An illustrative example of how to calculate the effective rate of return
Example: On 1/1/2022, the Al-Namothajiah for Islamic Micro-Finance granted a customer financing worth (1,000) JD, with a repayment period of (12) months, and a nominal annual return rate of (15.6%) (fixed), according to the costs shown below (the repayment method is Monthly installments starting on February 1, 2022):
|
Grant fees for financing |
20 JD |
|
The value of import stamps on the contract |
3 JD |
|
The value of the sales tax on the return is 3% |
4.68 JD |
|
Total |
27.680 JD |
Calculation method
First: The annual nominal return rate = 15.6%, so the monthly nominal return = 1.3%
Second: Cash flows at the start of financing: 1,000 JD
Third: Calculate the cash flow schedule according to the following table
|
Payment number |
Date of Payment |
Original Payment |
Return payment |
Cost |
monthly installment |
|
|
|
|
|
27.680 |
|
|
1 |
1 / 2 / 2022 |
73.03 |
22.97 |
- |
123.68 |
|
2 |
1 / 3 / 2022 |
74.71 |
21.29 |
- |
96 |
|
3 |
1 / 4 / 2022 |
76.42 |
19.58 |
- |
96 |
|
4 |
1 / 5 / 2022 |
78.18 |
17.82 |
- |
96 |
|
5 |
1 / 6 / 2022 |
79.97 |
16.03 |
- |
96 |
|
6 |
1 / 7 / 2022 |
81.81 |
14.19 |
- |
96 |
|
7 |
1 / 8 / 2022 |
83.69 |
12.31 |
- |
96 |
|
8 |
1 / 9 / 2022 |
85.61 |
10.39 |
- |
96 |
|
9 |
1 / 10 / 2022 |
87.58 |
8.42 |
- |
96 |
|
10 |
1 / 11 / 2022 |
89.59 |
6.41 |
- |
96 |
|
11 |
1 / 12 / 2022 |
91.65 |
4.35 |
- |
96 |
|
12 |
1 / 1 / 2023 |
97.76 |
2.24 |
- |
100 |
|
المجموع |
1,000 |
156 |
27.680 |
1,183.68 |
|
- Fractions of the value of the monthly installments are added to the value of the last installment.
- Fourth: The internal rate of return (IRR) is calculated using Excel and the IRR equation according :to the following
- In the Value field: we enter all cash flows (negative and positive).
- In the guess box (which represents the expected return) we enter “zero”.
So the result is 0.027683
- Which in this case expresses the actual monthly rate.
- Fifth: The effective rate of return (EIR) is calculated by replacing the internal rate of return (IRR) in the following equation:
- The result is the effective return rate = 38.77%.
List of fees and commissions
for administrative services provided by the Al-Namothajiah for Islamic Micro-Finance
|
The value (in Jordanian dinar) |
Commissions |
|
1% of the credit value: if the credit value is less than 1,000 JD. 1% of the credit value + 10 JD: if the credit value is from 1,000 - 10,000 JD. 1% of the credit value + 20 JD: if the credit value is more than 10,000 JD. |
Credit granting commission (One-time granting) |
|
2.5 JD if the installment is less than 50 JD. 5 JD if the installment is from 50 - 150 JD. 10 JD if the installment is more than 150 JD. |
Postponing the monthly installment |
|
5 JD |
Clearance certificate |
|
5 JD |
Certificate of commitments |
|
5 JD |
Request to amend financing terms or guarantees based on the client’s request |
|
JD 5+ Bank commission |
Stop cashing the check/withdraw the check |
|
One dinar per check |
- Withdrawing checks in exchange for a collection fee in case of early payment |
|
2 JD |
Check book for settlement |
|
5 JD |
Issuing a discount letter to other parties |
|
1 JD |
Account statement upon customer request |
|
5 JD |
Redemption of mortgage |
