Tamweelcom boosts small loans sector with 'responsible finance'

AMMAN — Non-profit Jordan Micro Credit Company, or Tamweelcom, a key player in microfinance in Jordan is adopting the concept of "responsible finance" in its practices, according to the company

Tamweelcom announced its decision to incorporate a variety of responsible finance practices in its coming three-year strategy, namely seeking better protection of its clients' interests and ensuring an improved line of services, while minimising risk, according to its Executive Director Ali Abdel Jabbar. 

Microfinance institutions seek to help people borrow money who do not qualify for standard bank loans, with Tamweelcom stating it is committed to “responsible finance”. 

"One key dimension of responsible finance is to give the financial service to the client who will use the money to open up or maintain a business, and make sure that this person is able to handle the debt. The last thing you want is that people you serve cannot pay or manage their debt, because this can backfire on different levels," Abdel Jabbar told The Jordan Times in a recent interview. 

He added that being transparent and acquainting the clients with everything they need to know about the service they are getting is also a key component of responsible finance. 

"The third tenant of responsible finance is related to product design and how you define your purpose of lending," noted Abdel Jabbar, who underlined that Tamweelcom focuses on productive loans that can generate income and contribute to people's well-being. 

"An aspect of what we do is raising people's quality of living. So, if someone's roof is leaking, we provide help because we know that the alternative is to borrow from family or friends," he explained, adding that "product design is about your purpose for the loan, and how it should fit our goal to alleviate poverty and help people improve their quality of life". 

Established by the Noor Al Hussein Foundation in 1999, "Digitising" Tamweelcom, is another project the organisation is working on to facilitate beneficiaries’ access to its services.  

"We want to provide our customers with the services and environment they deserve, and our new strategy focuses on improving the convenience of our beneficiaries," said Abdel Jabbar.

As part of Tamweel's efforts to expand its service coverage to remote areas, a mobile branch will soon take to the roads between Shobak and Wadi Musa, under a USAID-supported scheme. 

"We will also utilise this branch to push through responsible finance and financial literacy," said the executive director, commending USAID, the EU and other donors for their support to the microfinance sector in Jordan. 

Currently Tamweelcom, which works independently under the umbrella of the King Hussein Foundation, operates in 32 branches across Jordan and has served more than 622,464 clients, offering 420,982 loans worth around JD303.6 million. 

With most of its targeted clients working in the informal sector and home-based services, about 93 per cent of Tamweelcom beneficiaries are women. 

The company is also looking into ways to by loans to Syrian refugees in the next two months. 

"We, along with a group of institutions, are planning to start testing giving our loans to Syrian refugees. The way we regard it is that these people reside on Jordanian soil and are now part of the community," said Abdel Jabbar. 

While stressing that such a step is "going to be a learning experience for all of us", he underlined that empowering the refugee community along with host societies ensures a win-win situation.  

"We see ourselves as the engine for expanding the micro and small-business sector in Jordan, and we are aware that the government and the Central Bank of Jordan are demanding that institutions like us help them make small businesses a bigger player in this country," concluded Abdel Jabbar.