1 - The value of the loan
(a) The value of the loan shall not exceed 83% of the refinanceable housing loan balances.
(b) The loan is granted against the security of first-degree mortgages transferred to company favor, and the remaining value is not less than 120% of the loan principal. The original balances of the mortgages are subject to re-evaluation by the company according to the degree to which the interest rate or other conditions placed on the concerned housing loan diverge. About the prices and conditions applicable to most of the new housing loans as determined by the company.
2- Loan withdrawal procedures
(a) The loan shall be withdrawn within a maximum period of three months from the date of signing the refinance loan agreement.
(b) The procedures for withdrawals from borrowing financial institutions shall be agreed upon for each case separately, in proportion to the company's cash flows.
3- The interest rate charged on the loan
(a) Interest is calculated on the loan on the daily balance, it is credited monthly to a separate account, and it is paid at the end of every six months.
(b) The interest rate charged on the loan shall be reviewed every ( ) year(s) after the date of signing the refinancing loan agreement so that the interest rate is fixed for the subsequent period on the basis of the prevailing return in the local market on the company’s bonds or government bonds of the same duration. Whichever is more reflective of the conditions of interest rates in the market, plus a margin to be agreed upon at the time of granting the loan.
A- An annual interest is calculated on the loan on the daily balance and is credited monthly to a separate account and paid at the end of every six months of the life of the loan and this interest is considered an integral part of the loan.
B- The interest rate collected on the loan shall be reviewed every ( ) month(s) from the date of signing the refinancing agreement loan on the basis of the prevailing return in the local market on treasury bills or certificates of deposit issued by the Central Bank of Jordan, which have the same period plus a margin corresponding to it. at the time of granting the loan.
The interest is calculated on the basis of the actual number of days that have elapsed since the funds were in the possession of the borrowing financial institution, considering that the month is 30 days and the year is 12 months for the purposes of the denominator only, according to the following equation:
(Amount x interest rate x number of actual days divided by 360 days)
4 – Delay Interest
In the event that any amounts of the loan principal and/or interest and/or commitment commission or other expenses are due and were not paid on time, the financial institution shall be obligated to pay to the company, one week after the due date, the applicable annual interest rate on the loan, on the due amounts plus It has a percentage of (1%) per month, to be paid after seven days from the due date, until full payment.
5 - Commitment commission
A commitment commission is collected on the loan at the rate of (3%) on the amount of the committed and undrawn refinancing loan. The calculation of this commission starts from the date the financial institution signs the refinancing loan agreement until the end of the withdrawal period. This commission is paid on the same interest payment dates or at the end of the withdrawal period or cancellation of the undrawn loan balance, whichever occurs first. The commission is calculated on the basis of the same formula used to calculate the interest.
6 - Payment
1- The principal of the loan shall be repaid in one payment on the maturity date.
2 - It is not allowed to pre-pay the principal or any part of the loan without the approval of the company, and that approval is subject to a fine.
Prepayment based on the calculation of the difference between the prevailing market interest rate at the time of prepayment and the existing interest rate in the refinancing loan agreement.
3- The term of the loan may be extended once or more by agreement between the company and the concerned financial institution, based on a written request submitted by the concerned financial institution to the company three months prior to the original maturity date. The company's approval, when issued, determines the new maturity date and the interest rate for the next period.
4- The term of loans entered into prior to approval of this amendment may be extended by virtue of an appendix to the refinancing agreement.