Loan Guarantee Programs

Maximum Loan Amount is 250,000 JD

Maximum Payment Period is 72 Months

Guarantee Percentage is 70%

Program Objectives:

1- The purpose of the program is to help small and medium-sized businesses develop new economic initiatives, expand their current ones, or boost productivity, which will improve their revenue, job prospects, and employment across the country.

2-Encouraging commercial banks and financial institutions to support these projects with the appropriate funding based on their financial viability, cash flow, and presence of the JLGC's financing guarantee coverage.

Program Advantages:

1-This program protects against funding risks for both new projects and those involving the growth and/or upgrading of an existing project in order to boost its operational effectiveness.

2-This program covers the risks of feasible and revenue-generating economic sector projects (industry, professions, crafts, trade, services, construction, transport, and communications), and it is open to all economic sectors as long as they have the advantages of being able to secure the necessary financing. The agriculture sector, however, has its own requirements for accepting the provision of a guarantee.

3-the potential for granting a grace period in accordance with the loan's goal and the project's particulars

4-possibility of funding the acquisition of fixed assets, working capital or both.

5-the potential for awarding a maximum amount of revolving loans with the ability to recoup payments paid up to that maximum within the revolving loan restrictions.

Program Terms & Conditions :

1-The maximum investment available is 250 000 JD.

2-72 months is the maximum repayment duration, including the grace period (up to one year).

3-If a non-Jordanian owns the project, they must offer a Jordanian resident sponsor and credit that are acceptable and/or appropriate guarantees. The project should be privately owned and operated within Jordan.

In case of renewed Limits, the following shall be considered:

1-In order to avoid paying interest in advance, loans under this scheme must be given using the decreasing loan system.

2-The revolving limit is only intended to be used to fund working capital, including financing letters of credit, invoices, remittances, loans, or local purchases of raw materials for manufacturing or commercial transactions for projects protected by guarantee services.

3-Loans that fall within this cap should be programmed using a diminishing installment system or according to a schedule that calls for each drawn payment to be paid in a single or many installments.

Coverage:

1-For loans of 250 000 JD or less, there is a 70% coverage of the outstanding loan principal and interest for six months.

2-There is an 80% guarantee rate for projects that are owned and/or managed by women.

3-Loans exceeding this threshold (250 000 JD) may be approved with a partial guarantee percentage.

4-The terms and conditions of the agreement made with banks and other financial institutions govern the program.

Maximum Loan Amount is 250,000 JD

Maximum Payment Period is 72 Months

Guarantee Percentage is 70%

Program Objectives:

1-Assist small and medium-sized businesses with new initiatives, expansions, and/or improvements in order to finance working capital or buy fixed assets that are subject to financing terms that comply with Shariah.

2-encouraging business owners to take advantage of the Islamic financial system despite the lack of sufficient assurances for them.

3-The company will directly obtain the debtor's Kafala issuance fees.

Program Terms & Conditions:

1-The total available funding is 250 000 JD.

2-For facilities worth up to 250 000 JD, a 70% risk guarantee is provided.

3-The total repayment time, including the grace period, is 72 months, however, it cannot exceed one year.

Coverage:

1-Loans over this level can be accepted under a partial guarantee percentage and do not meet the requirements of the program of small enterprises. Coverage of 70% of the current funding balance upon default as well as the expected earnings for a period of 180 days.

2-There is an 80% guarantee rate for projects that are owned and/or managed by women.

3-The terms and conditions of the agreement made with banks and other financial institutions govern the program.

Maximum Loan Amount 75,000 JD

Maximum Payment Period is 300 Months

Guarantee Percentage is 85%

Program Objectives:

1-Helping people with middle- and low-income levels buy adequate homes is the goal of the program.

2-Encouraging commercial banks to offer middle-class and low-income borrowers the required funding so they can purchase a suitable shelter and be covered by the company's guarantee.

Program Advantages:

This program protects people with middle- and low-income housing finance concerns.

Program Terms & Conditions :

1-Maximum loan amount of 75,000 JD.

2-Loans that are larger than this cap (75 thousand JD) may qualify for partial guarantee.

3-300 months is the maximum repayment period (25 years).

4-Income verification and approval are required for repayment.

5-First-class mortgage in favor of the finance organization on the property.

6-If the projected value of the property or the sale contract is less than 85%, the financing ratio cannot exceed 85%; the remaining 15% must come from the client's own resources.

7-Throughout the term of the loan, insurance is provided on both the property and the borrower's life.

8-The same rules apply to Jordanians living abroad, as long as they submit a power of attorney to advise and notify a Jordanian resident and the loan's repayment time does not exceed 15 years.

Coverage:

1-For loans totaling no more than 75,000 JD, coverage is provided for 75% of the remaining principal as well as interest accrued during the default term.

2-Loans worth more than this amount (75 000 JD) may be approved using the partial guarantee percentage.

3-The terms and conditions of the agreement made with banks and other financial institutions govern the program.

Maximum Loan Amount is 15,000 JD

Maximum Payment Period is 36 Months

Guarantee Percentage is 70%

Program Objectives:

1-The program's goal is to assist microbusiness owners in starting new ventures, growing current ones, or boosting productivity in order to enhance income from these projects, create more employment possibilities, and boost employment across the nation.

2-Encouraging commercial banks and specialized financing institutions to provide these projects with the appropriate funding based on their financial viability and cash flows, all under the protection of the company's financing guarantee.

Program Advantages:

1-This program protects against funding risks for both new projects and those involving the growth and/or upgrading of an existing project in order to boost its operational effectiveness.

2-This program covers the risks associated with initiatives in economically active and revenue-generating areas (industry, professions, crafts, trade, services, and communications).

3-the potential for granting a grace period in accordance with the loan's goal and the project's particulars.

4-Possibility of funding the acquisition of fixed assets, working capital, or both.

Program Terms & Conditions:

1-The maximum amount of money available is 15,000 JD.

2-With the grace period, the maximum repayment duration is 36 months.

3-The initiative must be privately funded and operating in Jordan. If it is owned by someone who is not Jordanian, they must provide credit that is acceptable to Jordanians.

Coverage:

1-For loans of 15,000 JD or less, 70% of the principal loan amount and interest for six months are covered.

2-There is an 80% guarantee rate for projects that are owned and/or managed by women.

3-Loans beyond this ($15,000 JD) limit may be accepted with a partial guarantee.

4-The terms and conditions of the agreement made with banks and other financial institutions govern the program.

Maximum Loan Amount is 3 Million JD

Maximum Payment Period is 96 Months

Guarantee Percentage is 80%

Program Objectives :

1. Assisting small and medium-sized enterprises to establish their economic projects, expand their existing projects or increase their productivity, thereby increasing the income of these enterprises and increasing employment opportunities and employment in the national economy.

2. Encouraging banks to provide the necessary financing for these projects based on their economic feasibility and cash flows and under Coverage of guaranteeing the financing risks of the company.

Program Advantages:

1. Covering of financing risks for the industrial and service sectors.

2. Covering up to 70-80% of the outstanding balance of the loan upon default and the interest of six months following the default.

3. The possibility of granting a grace period in line with the purpose of the loan and the specificity of the project maximum of 12 months.

4. Possibility to finance the purchase of fixed assets or financing of working capital or both.

5. The possibility of granting a limit of a revolving loan, with the possibility of re-withdrawal of the amounts paid and within the limit which is originally pre-approved (within the program of industrial finance and Kafala).

Program Terms & Conditions:

1. Maximum value of the loan is (3) million dinars. (Loans above 3 million dinars can be accepted under the partial guarantee) and the guaranteed amount does not exceed 2.4 million JD at any time .

2. Project which is intended to be financed by an institution or company operating in Jordan and seeking profit and is wholly owned by the private sector, and number of employees is to be (250-5) workers.

3. The repayment period is from (3 - 8) years including the grace period.

4. The borrower must contribute at least 25% of the cost of the financed project.

5. Excluded Sectors from this program which are operating in the agricultural sector and trade, including Importing  finished materials for  resell or retail purposes, Financial Brokers, or anything against law or not in accordance with the rules and doesn’t go-with  or against well-known lending basics or ethics .

6. Program is subject to the terms and conditions of the agreement signed with banks and financial institutions.

7. Financing operational activities 100%. 

Maximum Loan Amount is 500-350,000 JD

Maximum Payment Period is 36-60 Months

Guarantee Percentage is 70%

Program Objectives:

encouraging both individuals and the SME sector beneficiaries registered in Jordan to purchase a system of renewable energy sources in order to reduce the cost of energy bills for both the beneficiary and the government, assisting beneficiaries in determining their energy requirements, and increasing the effectiveness of beneficiaries of this service in order to meet their bank and financial institution financing needs.

Program Advantages:

-The program is subject to the terms and conditions of the agreements made with banks and other financial institutions and the Renewable Energy Fund.

-Up to 100% of the entire cost of the energy-saving project may be financed.

-a 70% guarantee percentage of the loan's value.

-The Energy Fund is responsible for paying interest at the rate that was established between the Bank and the Fund.

Program Terms & Conditions :

** The electrical company's approval for the power generation system must be given within the following financial ranges:

Small and medium-sized companies:

-Maximum finance of 350 000 JD for a duration of no more than 60 months

-the availability of a price offer letter for the installation of a renewable energy system from the supplier authorized by the Fund for beneficiaries, as well as a feasibility study that has been accepted and verified by The Energy Fund.

Individuals (home electricity generation systems):

-A maximum of 3000 JD may be funded for a duration of no more than 60 months.

-the beneficiary's capacity to get a title deed to the property.

Individuals (solar heaters):

-A maximum of 500 JD may be invested for a time frame no longer than 36 months.

-A study of the fund, a price offer for the solar heater, and the beneficiary's ability to provide a title deed to the property or a lease agreement.

-For this portion, electricity company clearance is not necessary.

Maximum Loan Amount is 500,000 JD

Maximum Payment Period is 96 Months

Guarantee Percentage is 85%

Program Objectives :

Startup projects are those that have just been created and are officially registered in all economic sectors.

The purpose of the loan is to fund working capital or to buy fixed assets.

Borrower requirements and criteria to be qualified for this program include:

-With a new, fresh Trade license, the project's owner begins his project or activity in a new site for the first time, as well as an expansion or branch of an already existing activity.

-Applicants must be at least 22 years old.

-The borrower should possess the necessary professional qualifications and/or relevant practical experience.

-There are no indications that the project owner has a history of bad credit.

Project Credit Requirements:

-a business registration, a professional license, a title deed, or a lease agreement.

-Customer involvement of at least 20%

-Existence of a condensed feasibility study or anticipated cash flow estimated over the anticipated finance length of the sought loan, proving the project's viability.

-There are no outstanding debts related to the project.

-Project activity should be one of the program's permitted activities.

Priorities & preference for granting security guarantees:

-innovative ventures and entrepreneurship.

-projects outside of Amman, the capital.

-projects owned or managed by women.

-projects that were submitted by young persons between 22 and 35 years old.

Program Terms & Conditions :

-The loan's maximum amount is 250 000 Jordanian dinars (loans above this amount can be accepted under the partial guarantee percentage).

-Loan repayment terms should not be longer than 8 years, including the grace period, and 24 months in the case of working capital financing.

-If you're financing fixed assets, your grace period shouldn't be longer than one year, unless the project requirements and anticipated cash flow allow for it.

-85% maximum guarantee percentage

-The outstanding sum becomes payable under the JLGC Guarantee six months after the borrower's last installment was made.

-The project's lifespan from the registration date cannot exceed five years.

Acceptable Economic Sectors and Activities:

-Industrial, trade, agricultural (non-traditional agriculture), and industrial services, including modest professional works and handicraft projects.

-other charitable endeavors, such as computer-related projects.

-Hotel and restaurant services are included in the tourism sector.

-the nursery, kindergarten, and private school sectors of education.

Maximum Loan Amount is 3 Million JD

Maximum Payment Period is 96 Months

Guarantee Percentage is 80%

Program Objectives :

1. Assisting small and medium-sized enterprises to establish their economic projects, expand their existing projects or increase their productivity, thereby increasing the income of these enterprises and increasing employment opportunities and employment in the national economy.

2. Encouraging banks to provide the necessary financing for these projects based on their economic feasibility and cash flows and under Coverage of guaranteeing the financing risks of the company.

Program Advantages :

1. Covering of financing risks for the industrial and service sectors.

2. Covering 80% of the outstanding balance of the loan upon default, in addition to the considered profits from the price for a period of 180 days, and adopting the principle of partial guarantee for financing that exceeds JD 3 million and whose provisions are not compatible with the industrial financing and services program.

3. The possibility of granting a grace period in line with the purpose of the loan and the specificity of the project maximum of 12 months.

4. Possibility to finance the purchase of fixed assets or financing of working capital or both .

5. The possibility of granting a limit of a revolving loan, with the possibility of re-withdrawal of the amounts paid and within the limit which is originally pre-approved (within the program of industrial finance and Kafala).

Program Terms & Conditions:

1. Maximum value of the loan is (3) million dinars. (Loans above 3 million dinars can be accepted under the partial guarantee) and the guaranteed amount does not exceed 2.4 million JD at any time .

2. Project which is intended to be financed by an institution or company operating in Jordan and seeking profit and is wholly owned by the private sector, and number of employees is to be (250-5) workers.

3. The repayment period is from (3 - 8) years including the grace period.

4. The borrower must contribute at least 25% of the cost of the financed project.

5. Excluded Sectors from this program which are operating in the agricultural sector and trade, including Importing  finished materials for  resell or retail purposes, Financial Brokers, or anything against law or not in accordance with the rules and doesn’t go-with  or against well-known lending basics or ethics .

6. Program is subject to the terms and conditions of the agreement signed with banks and financial institutions.

7. Financing operational activities 100%.