Loans

In finance, aloanis adebtprovided by one entity (organization or individual) to

another entity at aninterest rate, and evidenced by anotewhich specifies, among
other things, the principal amount, interest rate, and date of repayment. A loan
entails the reallocation of the subjectasset(s) for a period of time, between the
lenderand theborrower.
In a loan, the borrower initially receives orborrowsan amount ofmoney, called
theprincipal, from the lender, and is obligated topay backorrepayan equal amount
of money to the lender at a later time.
The loan is generally provided at a cost, referred to asintereston thedebt, which
provides an incentive for the lender to engage in the loan. In a legal loan, each of
these obligations and restrictions is enforced bycontract, which can also place the
borrower under additional restrictions known asloan covenants. Although this article
focuses on monetary loans, in practice any material object might be lent.
Acting as a provider of loans is one of the principal tasks forfinancial institutions . For
other institutions, issuing ofdebtcontracts such asbondsis a typical source of
funding.
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Types of loans
 Bank X (Non Islamic Bank)

Personal loans
Automobile loans
Housing loans
Student loans
Office and client loans
Personal loans for medical doctors
Financing purchases

Bank Y (Islamic Bank)

Auto finance
Home finance
Land finance
Commercial offices financing
Goods Murabaha
Ijara services ( Travel Finance )
Haj and Omra financing
Al-Yusor Program

Bank X (Non Islamic
Bank)
 Personal loans :
Advantages of personal and consumer loans from X Bank:

Financing up to JD 50,000 against the transfer of salary to Jordan Kuwait Bank.

Free life insurance subject to the insurance company's approval.
Repayment period of up to 96 months.
Issuing a Visa Credit Card (Revolving) exempt of fees for the second year and
with a credit limit that suits the client's income.
Issuing a Master Card (Fly and Plus) against payment of set fees and with a
credit limit that suits the client's income.
Ability to postpone payment of one installment once a year (upon the client's
request in writing) until the end of the loan's term, subject to an approval from
the Consumer Loans Department and paying the set commission.
It is permissible to include the spouse's income only, provided that neither of
the incomes are less than the minimum salary accepted by Jordan Kuwait Bank.
The 13th and 14th salaries or any fixed monthly/annual incentives are to be
considered.
A guarantor is not conditional.
 Automobile Loans
Advantages of automobile loans from X Bank:

Loans are granted to individuals working in the public or private

sector and to self-employed individuals with middle and high
incomes.
Loans are granted for up to JD 100,000 provided that the used
car is not more than 10 years old for German cars and 7 years
old for other cars.
Repayment for up to 72 months.
Competitive interests rates with the possibility of granting the
loan at a fixed or a reducing interest rate.
Free life insurance subject to the insurance company's approval.
Several repayment options to suit the borrower's monthly and
annual income
Issuing a prior approval letter provided that the client pays 50%
of the cost of the car in cash as arranged with some agencies
Possibility of obtaining discounts on the comprehensive insurance
from the Arab Orient Insurance Company.
 Housing Loans
Advantages of housing loans from X Bank:

A loan offered to individual employees in the public or private sector and to middle and high
income self-employed individuals.
Possibility of granting the loan without a limit.
Ability to finance up to 90% of the property's value in the case of purchasing a house and
100% in the case of building one.
Free life insurance subject to the insurance company's approval.
Competitive interest rates.
Easy conditions with grace periods of up to 6 months in the case of purchasing a house
and12 months in the case of building oneprovided that interest is paid on a monthly basis.
Repayment period of up to 25 years.
Possibility of granting the loans to Jordanians residing abroad and to non-Jordanians residing
in Jordan.
Issuing Visa Credit Card (Revolving) exempt of fees for the second year and with a credit
limit that suits the client's income
Issuing Master Card (Fly and Plus) against payment of set fees and with a credit limit that
suits the client's income.
Possibility of granting additional financing for the kitchen not to exceed 10% of the loan's
value and with a maximum limit of JD 6,000, provided that the total value of the loan
inclusive of the kitchen loan does not exceed the average estimated value of the property.
Possibility of granting additional financing for maintenance to be granted after the
repayment of 25% of the original loan and does not exceed 20% of the original loan,
provided that the value of the financing does not exceed the average estimated value of the
property.
 Student Loans
Advantages of student loans from X Bank:

Loans are granted to individuals working in the

government sector, the official and semi-official
institutions, private sector companies, and self-
employed individuals
Loans are granted to cover and finance university/
collegetuition for a maximum of four scholastic years
to the sons/ daughters of borrowers or their relatives
of the first degree
The maximum limit of the loan is JD 15,000.
The loan is dispensed according to each terms tuition
Competitive interest rate
Repayment period of up to 48 month
 Office and Clinic Loans
Advantages of office and clinic loans from X Bank:

Free life insurance for the value of the loan subject to the insurance company's
approval
Issuing Visa Credit Card exempt of fees for the second year and with a limit that
suits the client's income
Issuing a Master Card (Fly and Plus) against payment of set fees and with a credit
limit that suits the client's income
The client is responsible for the mortgage and estimation fees
Repayment period of up to 15 years
Possibility of granting additional financing for decorating and furnishing the office
or clinic up to 10% of the loan's value and a maximum limit of JD 5,000, provided
that the total value of the loan and the additional financing does not exceed the
set funding limits
Financing of up to 80% of the estimated value of the property to be purchased or
100% in the event of providing other asset collaterals.
Possibility of postponing payment of one of the loan installments once a year
(upon the client's request in writing), and after obtaining approval of the
Consumer Loans Department and paying the set commission, whereby it is
postponed until the end of the loan term.
Competitive interest rates.
 Personal Loans for Medical Doctors

Advantages of personal loans for doctors from X Bank:

Reducing loan with a limit of JD 15,000 without collaterals

Competitive interest rates
Repayment period of up to 72 months
Issuing a Visa Credit Card (Revolving) exempt of fees for the second
year and with credit limit that suits the client's income
Issuing a MasterCard (Fly and Plus) against payment of set fees and
with credit limit that suits the client's income
Free life insurance subject to the insurance company's approval

Financing Purchases

Advantages of Financing purchases from X Bank:

Bank X offers the service of financing purchases from companies

participating in the program with many benefits and competitive
interest rates
Bank Y ( Islamic
Bank )
AUTO FINANCE

FEATURES

We clear the path to owning your car with murabaha

auto financing from Bank Y
Y Banks Sharia compliant auto finance is the key to
owning your favorite car at competitive murabaha rates
and flexible installments in addition to the following
benefits:
Financing new & used cars
Flexible repayment period up to 84 months
90% financing up to JOD 100,000
Salary transfer not required
Available to salaried, professionals and non-professionals
First installment within 45 days of receiving the financing
 HOME FINANCE
FEATURES

Owning your dream home has never been easier with the Lease-To-
Own Home Financing product from Y Bank

Own your dream house or apartment with Y Banks lease-to-own Home

Financing product and enjoy competitive hassle-free Ijarah rates and more.

The benefits and features of this program are many and include:

Financing up to 80% of the property value

Financing up to JOD 350,000
Flexible tenure up to 25 years
Salary transfer not required
Guarantor not required
Free Islamic Takaful Insurance available for both client and property
The possibility of sitting the liabilities with other traditional banks in the
form of Ijarah
Special financing programs available for Jordanian non-residents
 LAND FINANCE
FEATURES

Owning your dream home has never been easier with the Lease-To-Own Home Financing
product from Y Bank

For those looking to own land or farms and looking for an easy, convenient and Sharia
compliant solution, Y Banks Land Financing program is the key. This program will provide
you the opportunity to own your land or farm through either Murabaha or lease-to-own
programs.

Program features:

Murabaha

Financing up to 70% of property value

Financing up to JD 100,000
Flexible repayment period up to 7 years
No guarantor required

Lease-to own

Financing up to 70% of property value

Financing up to JD 200,000
Flexible repayment period up to 20 years
No guarantor required
Free Islamic Takaful Insurance available
 COMMERCIAL OFFICES FINANCING
FEATURES

Y Bank offers lease-to-own financing solutions that will help

you own your clinic or commercial office providing you
the opportunity to own a ready-to-go commercial space
within convenient terms and competitive leasing prices.

The product features include:

Financing up to 80% of property value

Financing up to 350,000 JD
Flexible repayment period up to 25 years
No guarantor required.
Free Islamic Takaful Insurance available for both client
and property
 GOODS MURABAHA
FEATURES

Your wish is our command With Y Banks goods financing
through murabaha you no longer need to wait
purchase everything you need now.

Y Bank provides you the opportunity to purchase all

goods and commodities within the framework of
Murabaha at competitive profit rates and flexible
conditions, in addition to the following benefits:

1. Wide variety of product options and variants under our goods

and commodities murabaha umbrella
2. Financing up to JD 75,000
3. Flexible repayment period up to 7 years
4. Available to salaried, professionals and non professionals
 IJARA SERVICES (TRAVEL
FINANCE)
Family Holiday Financing: (Finance/ Travel
Finance)

Enjoy an unforgettable family holiday with a
financing product that has been tailored to
meet your needs with the following benefits:

Competitive profit rates.

Flexible repayment period.
Financing up to JD 10,000
 HAJ AND OMRA FINANCING
FEATURES

- Your opportunity to complete Haj and

Omra within a flexible Sharia compliant
financing program which includes the
following benefits:

Competitive profit rates.

Flexible repayment period.
Financing up to JD 25,000
No guarantor required.
 AL YUSUR PROGRAM
FEATURES

Peace of Mind with Al Yusur Program

benefits:
Financing tailored to fit your financial
commitments
Flexible repayment period.
Available to salaried and professionals.
-The End