Hike in housing loans, drop in personal, car loans recorded

AMMAN — The value of personal and car loans granted by banks working in Jordan, both commercial and Islamic, decreased in 2016, while housing loans registered a “remarkable” increase in the same year, according to the Association of Banks in Jordan (ABJ).

ABJ data showed that the value of personal loans went down by 1.1 per cent to JD1.333 billion in 2016, compared with JD1.348 billion in 2015, the Jordan News Agency, Petra, reported on Tuesday, citing the 2016 ABJ annual report.

In 2016, interest rates for personal loans ranged between 4.5 and 13.5 per cent in commercial banks, while the murabaha rates for Islamic banks ranged between 2 and 7.75 per cent. 

The report showed that housing loans in 2016 increased by 24.5 per cent to JD977.3 million, compared with JD784.8 million in 2015.

ABJ said that banks approved 164,194 applications for personal loans, out of a total of 210,861 applications, with an approval rate of 77.8 per cent. 

Interest rates for housing loans ranged between 3.75 and 9.5 per cent at commercial banks, compared to murabaha rates that ranged between 5.5 and 8.75 per cent at Islamic banks.

The total of housing loans in 2016 stood at 39,642 applications, 31,170 of which were approved, marking an approval rate of 78.6 per cent.

The value of vehicle loans in 2016 declined by 10.2 per cent to JD487.1 per cent, compared with JD542.8 per cent in 2015, the ABJ report showed.

Interest rates at commercial banks for car loans ranged between 3.99 and 12 per cent, while Islamic banks offered murabaha rates ranging between 3.5 and 6.75 per cent, with a commission of 1 per cent and repaying period of up to 10 years.

Banks agreed to give car loans for 49,265 applications out of a total of 68,062 applications they received in 2016, marking an approval rate of 72.4 per cent.