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Returns and Fees List


Financing Type

Nominal Return Rate

Financing Value

Repayment Period

General Sales Tax (from financing return value)

Import Stamp Duty

(Annual)

(Dinar)

(Month)

(Dinar)

Existing Project Financing (A'mali)

%15

1,000 - 20,000

6 - 48 Months

3 %

1 Dinar for amounts less than 500 Dinars

2 Dinars for amounts from 500 to less than 1,000 Dinars

3 per thousand for every 1,000 Dinars or part thereof, for amounts of 1,000 Dinars or more

Start-up Project Financing

(Intilaqati)

%23

200 - 10,000

4 - 36 Months

3 %

1 Dinar for amounts less than 500 Dinars

2 Dinars for amounts from 500 to less than 1,000 Dinars

3 per thousand for every 1,000 Dinars or part thereof, for amounts of 1,000 Dinars or more

Home-based Project Financing (My Home Project)

%20

200 - 3,000

4 - 36 Months

3 %

1 Dinar for amounts less than 500 Dinars

2 Dinars for amounts from 500 to less than 1,000 Dinars

3 per thousand for every 1,000 Dinars or part thereof, for amounts of 1,000 Dinars or more

Personal Needs Financing (Ihtiyajati)

%23

200 - 3,000

6 - 36 Months

3 %

1 Dinar for amounts less than 500 Dinars

2 Dinars for amounts from 500 to less than 1,000 Dinars

3 per thousand for every 1,000 Dinars or part thereof, for amounts of 1,000 Dinars or more

Home Improvement Financing

%23

200 - 4,000

6 - 36 Months

3 %

1 Dinar for amounts less than 500 Dinars

2 Dinars for amounts from 500 to less than 1,000 Dinars

3 per thousand for every 1,000 Dinars or part thereof, for amounts of 1,000 Dinars or more

Taqati Financing

%18

500 - 5,000

6 - 36 Months

3 %

1 Dinar for amounts less than 500 Dinars

2 Dinars for amounts from 500 to less than 1,000 Dinars

3 per thousand for every 1,000 Dinars or part thereof, for amounts of 1,000 Dinars or more

Clinic Financing

%15

200 - 8,000

6 - 48 Months

3 %

1 Dinar for amounts less than 500 Dinars

2 Dinars for amounts from 500 to less than 1,000 Dinars

3 per thousand for every 1,000 Dinars or part thereof, for amounts of 1,000 Dinars or more

Health Financing

%22

200 - 5,000

6 - 36 Months

3 %

1 Dinar for amounts less than 500 Dinars

2 Dinars for amounts from 500 to less than 1,000 Dinars

3 per thousand for every 1,000 Dinars or part thereof, for amounts of 1,000 Dinars or more

Farm Financing

%23

200 - 3,000

6 - 36 Months

3 %

1 Dinar for amounts less than 500 Dinars

2 Dinars for amounts from 500 to less than 1,000 Dinars

3 per thousand for every 1,000 Dinars or part thereof, for amounts of 1,000 Dinars or more

Car Financing

%15

500 - 9,000

6 - 48 Months

3 %

1 Dinar for amounts less than 500 Dinars

2 Dinars for amounts from 500 to less than 1,000 Dinars

3 per thousand for every 1,000 Dinars or part thereof, for amounts of 1,000 Dinars or more

Workshop Financing

%22

200 - 3,000

6 - 36 Months

3 %

1 Dinar for amounts less than 500 Dinars

2 Dinars for amounts from 500 to less than 1,000 Dinars

3 per thousand for every 1,000 Dinars or part thereof, for amounts of 1,000 Dinars or more

.

Illustrative example on how to calculate the Effective Interest Rate

Example:- On 1/1/2022, Namothjiah For Islamic Microfinance granted a client financing of (1,000) Dinars 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 2/1/2022):

Financing Granting Fees

20 Dinars

Value of import stamps on the contract

3 Dinars

Sales tax value on the return 3%

4.68 Dinars

Takaful insurance value

2.80 Dinars

Total

30.48 Dinars

Calculation Method

  • First: Nominal annual return rate = 15.6%, so the nominal monthly return = 1.3%.
  • Second: Cash flows at the start of financing: 1,000 Dinars.
  • Third: Calculation of the cash flow schedule as per the following table:

Payment Number

Payment Date

Principal Payment

Return Payment

Costs

Monthly Installment

30.48

1

1 / 2 / 2022

73.03

22.97

-

126.48

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

Total

1,000

156

30.48

1,186.48

  • Fractions of the monthly installment value are added to the last installment.

  • Fourth: The Internal Rate of Return (IRR) is calculated using Excel by using the (IRR) equation as follows:-

  • In the Value box: Enter all cash flows (negative and positive).
  • In the Guess box: (represents the expected return) Enter " zero ".

The result = 0.027935

  • Which in this case represents the monthly effective rate.

  • Fifth: The Effective Interest Rate (EIR) is calculated by substituting the Internal Rate of Return (IRR) into the following equation:


  • The result will be an Effective Interest Rate = 39.18%

List of Fees and Commissions

For administrative services provided by Namothjiah For Islamic Microfinance

Value

(In Jordanian Dinars)

Commissions

1% of credit value: if credit value is less than 1,000 Dinars.

1% of credit value + 10 Dinars: if credit value is 1,000 - 10,000 Dinars.

1% of credit value + 20 Dinars: if credit value is more than 10,000 Dinars.

Credit Granting Commission

(One-time at granting)

2.5 Dinars if the installment is less than 50 Dinars.

5 Dinars if the installment is 50 - 150 Dinars.

10 Dinars if the installment is more than 150 Dinars.

Postponing the monthly installment

5 Dinars

Clearance Certificate

5 Dinars

Liability Certificate

5 Dinars

Request to modify financing terms or guarantees at the client's request

5 Dinars + Bank Commission

Stop payment of check / Withdrawal of check

One Dinar per check

Withdrawal of checks for collection in case of early repayment

2 Dinars

Check settlement letter

5 Dinars

Issuing a deduction letter to other parties

1 Dinar

Statement of account at the client's request

5 Dinars

Mortgage Discharge