LOAN GUARANTEE ( Lenders  &  Borrowers)

A. For Lenders

Step 1:

If you work at a Jordanian bank or a financial institution and have identified a project that may require a loan guarantee in order to secure financing approval,

Consult the JLGC Programmes & Services Section to determine if the project will meet basic JLGC criteria for eligibility (e.g. loan size, number of employees, purpose, etc.).

Review the list of Participating Banks to determine if your bank has an active relationship with JLGC. If it does not, contact the Domestic Loan Guarantee Department about the possibility of initiating such a relationship.

Step 2:

If the project is ready for financing, and if a JLGC guarantee is considered appropriate, print Loan Guarantee Application Form, complete the required information, and fax it to the attention of the JLGC Domestic Loan Guarantee Department at 6-5625408. JLGC will review the completed Loan Guarantee Application Form, and send a response back -- usually within one business day. .

Step 3:

If JLGC’s response is positive, then complete Loan Guarantee Application Form  and fax it to the Domestic Loan Guarantee Department for final guarantee approval from JLGC.

B. For Borrowers

Step 1:

If you have a project or business that may require a JLGC loan guarantee in order to qualify for regular bank financing, Consult the JLGC Programmes & Services Section to determine if the project will meet basic JLGC criteria for eligibility (e.g. loan size, number of employees, purpose, etc.).

Step 2:

Since all JLGC domestic loan guarantee applications must be submitted through the financing bank, approach a bank about your project or business to determine if it is worthy of financing and if the JLGC guarantee is appropriate. Review the list of Participating Banks to make sure that your bank has an active relationship with JLGC.

Step 3:

If the project is ready for financing -- and if you and your bank have decided that a JLGC guarantee is appropriate -- the financing bank must complete Loan Guarantee Application Form and return it to JLGC for preliminary consideration. JLGC will review the completed Loan Guarantee Application Form, and send a response back to your bank -- usually within one business day.

Step 4:

After Loan Guarantee Application Form has been approved, your financing bank will need to complete and submit Loan Guarantee Application Form   for final guarantee approval from JLGC.

Top

EXPORT WORKING CAPITAL GUARANTTEE SCHEME

Step 1

If you are an exporter and have a foreign order that may require a pre-shipment guarantee in order to secure financing, consult the JLGC Programmes & Services Section to determine if you meet the Export Credit Guarantee Department’s basic eligibility criteria.

Step 2

If you and your financing bank determine that a JLGC pre-shipment guarantee is appropriate, the financing bank must print Form 201, complete the required information, and fax it to the attention of the JLGC Export Credit Guarantee Department at 6-5625408 for preliminary approval. JLGC will review the completed application, and send a response back -- usually within one business day.

Step 3

After preliminary approval has been granted, the financing bank must complete Form 202 and fax it to the Export Credit Guarantee Department for final pre-shipment guarantee approval.

EXPORTS CREDIT GUARANTEE PROGRAM

Step 1

 If you are an exporter wishing to credit insure your shipments to external markets, you must contact the Export Credit Insurance Department at JLGC. You will then be asked to fill a form with your buyers' names, addresses and revolving credit limits you wish to provide to each buyer -the maximum being US$4,000,000.00. 

 Step 2

After inquiring about your buyers through our widespread data base, and determining credit limits for each of them; you will be asked to fill the next form which includes information on your company, expected turnover, and buyers inorder for us to assess the risk and decide on a premium rate accordingly. 

Step 3

An offer of premiums and fees for signing the Credit Insurance Policy will be provided to you. If you agree to the offer, a one-year policy will then be signed covering your sales to the covered buyers within the credit limits assigned. Further buyers can be added to the policy at any time, granted that we agree to appointing a credit limit to them.

Top

DOMESTIC CREDIT INSURANCE DEPARTMENT

Step 1

If you are a Jordanian factory and would like to sell your manufactured goods to local buyers on credit and require  JLGC’s  guarantee against the risk of non payment by those buyers , Consult the JLGC Programmes & Services Section to determine if the project will meet basic JLGC criteria for eligibility (e.g. loan size, number of employees, purpose, etc.).

Step 2

The applicant must provide all the information of the commercial transactions to JLGC.

Step 3

If the application meets JLGC criteria for eligibility a contract must be signed concerning all the terms and conditions and fees of the guarantee provided.                                                                                      

In 1997, the Corporation took on the function of Export Credit Guarantee and its capital was increased to JD 10 million (USD 14 million).

Top

INDUSTRIAL MODERNIZATION LOAN GUARANTEE

Step 1

If you are a small or medium size enterprise that may require a JLGC loan guarantee in order to expand or modernize its fixed assets and require long  or medium term financing  Consult the JLGC Programmes & Services Section to determine if you will meet basic JLGC criteria for eligibility (e.g. loan size, number of employees, purpose, etc.).

Step 2

Since all JLGC Loan guarantee applications must be submitted through the financing bank, approach a bank about your project or business to determine if it is worthy of financing and if the JLGC guarantee is appropriate. Review the list of Participating Banks to make sure that your bank has an active relationship with JLGC.

Step 3

If the project is ready for financing -- and if you and your bank have decided that a JLGC guarantee is appropriate -- the financing bank must complete Loan Guarantee Application Form and return it to JLGC for preliminary consideration. JLGC will review the completed Loan Guarantee Application Form, and send a response back to your bank -- usually within one business day.

Step 4

After Loan Guarantee Application Form has been approved, your financing bank will need to complete and submit Loan Guarantee Application Form for final guarantee approval from JLGC.

Top