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Export
Credit Guarantee Programme
"Your business is exporting, ours is risk taking"
"Your
exports are our business"
The
Jordan Loan Guarantee Corporation is pleased to provide exporters in
Jordan with an export credit insurance program covering 85% of the
risks involved in all phases of the export transaction. JLGC's
services can take away many of the usual payment risks that seem to
go along with exporting. They can also give you confidence necessary
to take on new buyers and break into new markets.
A JLGC guarantee may even allow you to win more business by enabling
you to offer your buyers more competitive credit terms. At JLGC,
your exports are our business.
"You
Excel in exports, we excel in carrying your export risk"
It is
a well known fact that the exporters' ability to penetrate new
markets and to compete globally does not only depend on the quality
and price of their products, but also relies on the payment terms
offered to the buyer. With JLGC's Export Credit Insurance, the
exporter is able to enter into agreements with the confidence that
they will receive payment for their exports. The maximum credit
period covered in the Export Credit Insurance Program is six months.
Thus,
with the absence of buyer payment risk, the exporter is able to
offer better payment terms to the buyer as well as receive more
favorable credit terms from their own bank.
"Covering
your political and commercial risks, that's our business!"
JLGC's
Export Credit Insurance Program gives the exporter comprehensive
coverage against both political and commercial risks abroad to
include:
Political Risks: War, strikes, civil disturbance, protracted default of
public buyer, and other governmental interference.
Commercial Risks: Buyer insolvency, protracted default of buyers, and refusal
of the buyer to accept the documents of shipped goods.
At
JLGC we worry about the export risk, so you don’t have to.
"Let
our worldwide network of export credit professionals serve you"
To
better serve your export credit needs, JLGC has cooperated with
Credit Alliance, a world wide network of specialist credit insurers
providing local expertise on credit information, claims payment, and
debt collection.
Credit Information
Prompt
and accurate buyer credit information is vital to exporters.
Therefore as a member of Credit Alliance, JLGC has access to the
best commercial information sources available throughout the world.
In addition to traditional credit information agencies, JLGC also
has access to a specialized credit information network, called "Info
Alliance", which operates in over fifty major trading countries
spread over every continent. JLGC places all these information
resources at your disposal. It is this immediate access to such
vital information that can give your company an edge on the
competition.
Claims and debt collection
One
of the most important services customers expect their export credit
insurer to provide is the management of credit, including monitoring
overdue accounts and the payment of claims. A guarantee from JLGC
can give your company substantial benifits in this area. Over the
past few years, Credit Alliance has built the largest and most
comprehensive network for debt collection in the world. This gives
JLGC unrivalled access to local claims management expertise in
overseas markets and gives you, the exporter, a level of efficiency,
control, and confidence, which was previously unobtainable.
At
JLGC, we are committed to provide you with the best products and
services to fulfill your needs as an exporter.
"Let us give you the peace of mind you need so you can concentrate
on exporting"
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Industrial Modernization Loan Guarantee Scheme / EJADA’s
Programme
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Guarantee contract covers all the SME’s loans up
to JD 430,000 .
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Guarantee covers 70% of the loss value
caused by any of the commercial risks outlined in the guarantee
contract.
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Maturity Period
ranges
between three and Eight years including the grace
period.
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Maximum Grace
Period is 2 years.
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Participating bank is assigned an up to 1.5%
charge on the usage of guarantees allocated to that bank.
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Enterprise owners contribution 25 % of total costs.
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Exports Working Capital Guarantee Scheme
( Pre-Shipment )
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Designed to assist Jordanian exporters in
obtaining short-term loans from local commercial banks to
finance their working capital needs with minimum collateral in
order to produce exportable goods.
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75%
guarantee of the bank’s loan granted up to JD 250,000.
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Repayment period should not exceed one year,
except for exceptional cases.
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Participating bank is assigned a 1.5 %
charge on the usage of guarantees allocated to that bank.
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Loan recipient – be it an individual or a legal
entity -- must be Jordanian and located within the Kingdom.
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Project must be private sector owned.
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Guaranteed loan must be used in financing the project’s working
capital for export.
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Loans Period not to exceed 12 months.
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Loan
Guarantee Scheme For Low & Middle Income Housing
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Provides guarantees for the risk of housing loans
to low and middle income groups.
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Maximum limit of JD 50,000
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75%
guarantee of maximum loan limit
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Partial coverage
of loans exceeding JD 50,000
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Participating
bank is assigned a 0.75% charge on the total ceiling for
guarantees allocated to that bank.
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Real estate
mortgage of the 1st degree and proof of
potential income sources required.
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Loan maturity up to 20 years.
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Loan Guarantee Scheme For Urban Development Housing Programme
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Provides guarantees for the risk of housing loans
to low and middle income groups.
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Maximum limit of JD 25,000
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75%
guarantee of maximum loan limit
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Partial coverage
of loans exceeding JD 25,000
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Participating
bank is assigned a 0.75% charge on the total ceiling for
guarantees allocated to that bank.
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Real estate mortgage of the 1st degree and proof
of potential income sources required.
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Loan maturity reaches 20 years.
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Land
Purchase Loan Guarantee Scheme
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Provides guarantees for the risk of housing loans
to low and middle income groups.
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Maximum limit of JD 30,000
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70%
guarantee of maximum loan limit
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Participating
bank is assigned a 0.75% charge on the total ceiling for
guarantees allocated to that bank.
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Real estate mortgage of the 1st degree and proof
of potential income sources required.
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Borrower’s contribution must be 50% of Land Price.
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Loan
maturity reaches 10 years.
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Loan Guarantee Scheme
For Small & Medium Size Enterprises
( S M E ‘s )
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Guarantees intended for small & medium-sized
productive projects, owned by private sector in
Jordan, with a
labour force not exceeding 50 employees.
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Intended for new projects or expansion /
modification of existing
ones.
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75%
guarantee of outstanding balance for all types of loans up to
JD 40,000.
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50%
guarantee on loans in range of JD 40,000-100,000.
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Loans in excess of JD 100,000 may be
partially guaranteed.
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Loan period cannot exceed 6 years, including a 1 year
maximum grace period.
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Participating bank is assigned a 1.5% charge on the total
ceiling for guarantees allocated to that bank.
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Personal Computer Loan Guarantee Scheme
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Loan amount can not exceed JD 1,100.
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Maximum repayment
period of 48 months.
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Guarantee covers
85 % of outstanding loan balance including all interest.
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Programme can be
administered in conjunction with governmental & non-governmental
organizations.
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Car
Installment Loan Guarantee Scheme
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Guarantees are intended to help finance the
purchase or replacement of vehicles used for public
transportation.
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Maximum loan amount of JD 14,000.
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Guarantee covers 75 %
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Maximum repayment period of 60 months
including grace period.
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Full-coverage car insurance policy endorsed to
benefit of bank.
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An acceptable
(trustworthy) guarantor with adequate income
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Participating
bank is assigned a 1.5% charge on the total ceiling for
guarantees allocated to that bank.
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Loan
Guarantee Scheme For Productivity Enhancement
/ ERADA Programme
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Guarantees intended for small & medium-sized
productive projects, owned by private sector in
Jordan, with a
labour force not exceeding 50 employees.
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Intended for new projects or expansion /
modification of existing
ones.
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70 %
guarantee of outstanding balance for all types of loans up to
JD 25,000.
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Loans exceeding JD 25,000 may be partially
guaranteed.
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Loan period cannot exceed 5 years, including a 1 year
maximum grace period.
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Participating bank is assigned a 1.5% charge on the total ceiling
for guarantees allocated to that bank.
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Domestic Credit Insurance
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Provides guarantees for industrial and commercial
companies & establishments for the risk of their credit offered
to their clients in
Jordan.
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Maximum limit of $4,000,000 per buyer.
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85% guarantee of maximum loan limit
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Maximum Facility Period not to exceed 6 months
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Financial Leasing Program:
Financial Leasing Guarantee Scheme
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The
objective of the Financial Leasing Guarantee Scheme is to
improve the general access of small and medium sized enterprises
(SME’s) to medium and long term credit. The scheme seeks to
address the concerns of banks regarding SMEs’ lack of collateral
in financial leasing transaction where the security value of the
leased asset is insufficient or doubtful and encourage credit
appraisals which place greater emphasis on a lessee’s ability to
repay.
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The Jordan
Loan Guarantee Corporation will administer the scheme through
participating banks and will issue financial leasing guarantees
to a maximum of 70% of the extended financing and the accrued
interest up to a maximum of 180 days following a financial
leasing default.
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Minimum
size guarantee amount of JD 20,000 and maximum size guarantee
amount of JD 300,000 in aggregate for any one lessee, provided
that it does not exceed 50% of the invoice price of the leased
asset.
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Repayment
period on the lease must be in the range of 3 to 8 years,
including any moratorium or grace period.
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Financial
leasing may only be approved for the acquisition of plant,
machinery and equipment, and the acquisition, renovation or
extension of premises for business, commercial or industrial
purposes.
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