Microfinance Guarantee Program aims to provide a guarantee to finance the targeted and incoming groups through microfinance companies operating in Jordan, according to easy deadlines and costs, in order to help these companies, continue their business and cover their operating and capital expenses, especially with the economic challenges associated with the Corona pandemic during the current stage.
The program targets the customer segment of small companies, micro-companies, home micro-projects, professionals, craftsmen and self-employed individuals (in accordance with the definition of the Central Bank of Jordan).
This program covers 85% of the loan balance granted under this agreement on the default date, plus interest for six months.
Conditions and limitations for the finances granted under this program:
The clients should be beneficiaries according to the target groups (in accordance with the definition of the Central Bank of Jordan).
The maximum loan value is (25,000 JDs) for small companies and micro projects, and (5,000 JDs) for professionals, craftsmen and self-employed individuals.
The period of the granted loan shall not exceed 42 months, including a maximum grace period of 12 months.
Loans are not granted to repay client-based obligations to microfinance companies or any other financial institution.
clients’ life and/or asset insurance is required throughout the life of the loan.
Obtaining a guarantee from a credit acceptable Jordanian sponsor for all loans granted to self-employed professionals and craftsmen.
The approval of the Central Bank to refinance the loan, (in accordance with the procedures approved by the Central Bank of Jordan).
Murabaha, commercial speculation, trading in shares and bonds, and loans for consumer purposes.
Financing the existing credit portfolios of financial institutions and their renewals or extensions.
Purposes of manufacturing or selling weapons or related services.
Manufacture of cigarettes and tobacco products and trading in spirits.
any activities that affect the environment and public health.