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SME’s Loans

Cairo Amman Bank offers customers of small and medium-sized companies a program dedicated to financing new and existing projects, which includes the expansion, improvement, development, and financing of operating capital and fixed assets. Through this program, the bank serves customers in various economic sectors, including, but not limited to: commercial projects, industrial projects and services, agriculture, and others.

SME’s Loans Features

  1. A Financing amount of up to JOD 1,500,000 is in line with the needs and income of the enterprise.
  2. A Flexible payment period of up to 7 years, including a grace period consistent with the flow of returns.
    There are two options for the customer per request:
    1. Paying the grace period interest from the customer’s external source on a monthly basis.
    2. The grace period interest is added monthly to the loan balance and is paid in installments.
  3. Several suitable credit facility options based on the situation of the applicant:

European Investment Bank Funding for SME Loans

Through an agreement with the European Investment Bank (EIB; www.eib.org), we are supporting small and medium-sized businesses (SMEs) by providing access to an invaluable source of lower-cost finance and flexible repayment schedules.

The EIB is the long-term lending bank of the European Union; its role is to finance investment projects in support of EU policy objectives. With a view to supporting EU external action, by decision of the European Parliament and of the Council, the EIB is granted an External Mandate to finance corresponding projects outside the EU.

Thanks to its best possible rating on the capital markets (AAA), the EIB can borrow funds on favorable terms, which it passes on to SMEs through us. We specifically and individually inform the SMEs of the EIB’s involvement and its impact on the financial terms of the loan received. Extensive information related to the EIB Group’s support to SMEs can be found on the EIB website (www.eib.org).

The EIB is strengthening its support for SMEs by helping this critical sector to access vital new lines of credit. The loan term is a minimum of 2 years (the actual length of the loan will depend on the economic and technical life of the project financed), and it can be used to finance from very small projects to investments with a maximum cost of EUR 25 million. The EIB’s contribution, however, cannot exceed EUR 12.5 million.

  • Local SMEs with less than 250 employees on a consolidated basis prior to the investment.
  • Most economic sectors are eligible with a few exceptions, amongst which production of weapons and ammunition, arms, military or police equipment or infrastructures, equipment or infrastructure limiting people’s individual rights and freedom, activities which give rise to environmental impact, activities considered ethically or morally controversial or prohibited by national legislation, activities targeting the production or sale of goods which are the subject of an act infringing a trade mark or a geographical indication, gambling, and tobacco-related activities.

The EIB loan can be used to finance all investments and expenditures that are incurred in the context of the development of an SME, i.e.:

  • Tangible investments: purchase, renovation, or extension of tangible assets, with some restrictions concerning land purchases.
  • Intangible investments: particularly the expenditure involved in R&D, purchase of process licenses and software.
  • Medium and long-term working capital requirements needed for the operational activity of the SME.
  • You can receive beneficial interest rates compared to standard business lending conditions.
  • You can negotiate the loan’s term or repayment frequency to suit your business’s circumstances and cash-flow requirements.
  • It allows you to invest significantly in your business without adversely affecting your cash flow or liquidity.

In case this was requested by the EIB: (a) upon reasonable notice, you should permit the EIB representatives to visit and inspect all sites, installations, and works that comprise the project which is the subject of the loan, and (b) we may provide information about you to the EIB.

Please contact our relationship manager or visit our local branch to discuss if your business qualifies for funding supported by the EIB “Loans for SMEs” scheme.

Direct Credit facilities

  1. Direct cash facilities can be used to fund clients to cover their working and investment capital needs for a short-, medium- or long-term period. 
  2. Determining the appropriate form of finance required depends on the nature of the business and the purpose of the finance:

The Bank offers an overdraft account up to a certain amount for a designated period, renewable with the consent of the clients and the Bank. The client is allowed to withdraw from the overdraft account after signing the facilities contract.

Granting the client an overdraft account for their businesses with ongoing cash flows to increase the business, industrial, or service according to the limits and specific guarantees agreed between them and the Bank. The advantages of an Overdraft are that a client may deposit funds into the account to reduce the balance and the interest incurred on it.

The account should be renewed annually by mutual consent, based on the client’s activity and the account. The interest should be calculated based on the highest daily debit balance and charged to the client’s account every month.

Revolving loans for financing working capitals (raw materials and operating expenses).

The Bank offers letters of credit to clients to finance their costs for imported goods. Under letters of credit or bills of collection, payments can be made in installments over a specified period.

The Bank offers loans to clients to finance their exports of manufactured goods in Jordan. These loans are usually offset by import letters of credit from clients. They can be given in local or foreign currency as required or instructed by the Central Bank of Jordan.

Loans are granted to multiple targets to develop real estate, commercial and housing projects, or purchase land. The usual terms of these loans are for a medium-or long-term period between 3-7 years.

At the client’s request, loans are given to contractors or suppliers responsible for the construction, maintenance, or supply of equipment and services.

Finances are given to clients looking to grow their assets related to work, such as cars, equipment, and production lines for their factories. These loans hold a maximum term of 7 years with an appropriate grace period.

  • In cooperation with the Central Bank of Jordan and third parties, Cairo Amman Bank supports different sectors by providing them with funding at flexible interest rates and competitive terms.
  • Cairo Amman Bank provides guarantees for the facilities it offers under agreements signed by each of the following companies under certain conditions:
    1. Jordan Loan Guarantee Corporation
      Whereby revolving loans and one-time loans are guaranteed for the productive and industrial sectors as well as start-ups. The guaranteed rate reaches up to 85%
    2. The Overseas Private Investment Corporation (OPIC)
      Whereby all types of loans, except current debt, are guaranteed. The guaranteed rate reaches up to 75%
  • Subject to the agreements’ terms and conditions

Indirect facilities

Indirect facilities such as letters of credit and guarantees are implemented with the clients based on the nature of their job titles.
  • Providing full ongoing consultancy to small and medium entrepreneur clients.
  • Providing SME courses and training sessions.
  • Around-the-clock support.
  1. If the applicant is a company or establishment, the following documents are required:
    • An up-to-date certificate of registration showing the names of partners and people authorized to sign on the company’s behalf, which indicates that the company has the right to take loans from the banks with copies of their identity cards.
    • A copy of the memorandum of incorporation.
    • A copy of the internal regulations of the company must also be provided.
  2. Whereas, if the applicant is an individual, a valid license for practicing a profession or craft, issued by the Chamber of Commerce and/or the Municipality, with a copy of the applicant’s identity card must be produced.
  3. Both applicants should provide a bank account statement for the last six months.
  4. All Documents should prove the availability of funds for repayment: Financial statements for at least the last two years (audited financial statements, unaudited budget, sales tax report, and the enterprise books for review).

Applicants must provide one of the following collaterals which are accepted by CAB such as:

  • Cash
  • Mortgage
  • Negotiable security
  • Equipment
  • Personal or corporate guarantees accepted by the Bank

All these guarantees are subject to the terms and conditions of the Bank.

Account managers in the SMEs Department are prepared to come to a client’s place of work to help organize the papers and statements required by the Managers of Credit Relations.

For more information, please contact this number: 065007700

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