Loans

Micro Financing

This product was designed specifically to provide financial services to small and micro enterprises that have high financial productivity within the Jordanian economy. It provides loans to individuals and owners of formal and non-formal enterprises of commercial activities, services, simple production, etc.

Conditions that must be met by loan applicants and enterprises requesting finance:

  • Must be a Jordanian
  • Borrower must be no younger than 21 years.
  • Must be a permanent resident of Jordan residing in the area where the service is provided.
  • The enterprise must be no less than one year old.
  • The customer must be able to fulfill obligations stemming from the financing and other already existing obligations.
  • Customer must have a good creditworthy reputation.

Micro loans may be given for enterprises that have or do not have official records (trade license, commercial register).

Conditions on Microfinance loans:
  • Interest rate between 16 %-17 % and commission 1 % per annum for the first year only.
  • Formal business: must have a valid trade license and commercial registration.
  • Informal business: guarantee with salary transformed to the bank.
  • Insurance on clients' life through bank.

Micro-loans are granted for the following purposes:

  1. Finance the purchase of fixed assets or the expansion of the enterprise.
    Table of loan brackets:
  2. First loan Second loan Third loan Fourth loan
    Loan Amount 300-3000 JD 300-4500 JD 300-6000 JD 300-10000 JD
    • The loan must be repaid in equal installments within 4 t0 24 months.
  3. Financing working capital.
    Table of loan brackets
  4.   First loan Second loan Third loan Fourth loan Fifth loan Sixth loan
    Loan Amount 300-1000 JD 300-1500 JD 300-2500 JD 300-4000 JD 300-6000 JD 300-10000 JD
    • The loan must be repaid in equal installments within 4 t0 18 months.
  5. Financing enrollment or renewal of membership in the Profession Associations
      Loan amount between 300-1500 JD.
      Payback period 4-12 months.
      Flat interest rate 16%.
  6. Financing fee for renewal of profession license.
    • Loan amount between 100-300 JD.
      Payback period 3-6 months.
      Flat intrest rate 17%.

Micro loan against savings account:

In case the client desires to save money by depositing part of the loan in a saving account at the bank, the loan interest rate will be charged at a privileged price in order to encourage customers to save.

Customer would benefit from the advantages of saving accounts offered by the bank.

Note: All of the above terms and conditions are subject to CAB’s loan-granting policies.