Circular Regarding Personal Loans for Real Estate Refinancing No. (7293/4/2/10) dated 2016/5/24

In the name of Allah, the Most Gracious, the Most Merciful

Number: 7393 / 4 / 2 / 10
Date: 12 / 8 / 1437 AH
Corresponding to: 24 / 5 / 2016 AD

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Circular to Banks Operating in the Kingdom

Greetings,

In light of the Central Bank of Jordan's continuous monitoring of the products and services provided by banks operating in the Kingdom to their clients, it has become apparent that some banks are granting banking facilities aimed at (improving and developing property, consolidating internal and external obligations (purchasing loans), or granting cash amounts...), where the loan is granted against ready residential real estate mortgages with a repayment period exceeding (8) years under various names, including: "Personal Loan for Real Estate Refinancing", "Equity Release / Home Improvement Loan".

Please be informed of the necessity to stop granting such facilities to your clients within the above parameters, as they conflict with Article (9/b) of the Customer Treatment Instructions No. (2012/56) dated 2012/10/31, under the threat of legal sanctions.

Please accept our highest respect,

Governor
Dr. Ziad Faris

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P.O. Box 37 • Amman 11118 Jordan • Phone 4630301 • Fax 4638889 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo