According to a report issued by the Jordan Microfinance Network (Tanmeyah), Jordan’s microfinance industry recorded a rise by approximately 24% between 2010 and 2013, reaching JOD 123 million total gross loan portfolio. The growth is a result of the increasing demand of microfinance institutions for small loans in areas outside the capital of Jordan; such as Zarqa, Irbid, Balqa and Karak, taking approximately 62% of the total loan portfolio or JOD 76 million. Such demand was mainly derived from needs for development in governorates.
The ceiling of microfinance loans differs from one institution to another, ranging between JOD 15,000 and JOD 70,000.
The network underlined that the active loans surged by 20%, recording JOD 302,000 in 2013. The report showed that the Jordanian microfinance sector has managed to raise the total number of clients directly served with the industry's available financing products to 282,000 clients nationwide.
"Jordan microfinance industry has taken a good leap towards achieving financial inclusion goals. The market is mature comparing to neighboring countries’ markets in MENA region in terms of number of lenders, penetration rates [number of clients comparing to population],depth of outreach [average amount of outstanding loan comparing to GDP per capita], and credit products range offering to productive poor and low income people," the report highlighted, adding that "Today, Jordan has eight active microfinance institutions through 133 branches deployed in all parts of the Kingdom covering all governorates."
The report emphasized that "Generally, any portfolio at risk exceeds six percent should raise a flag of concern"; however, microfinance institutions have an average of portfolio at risk of less than two percent in Jordan.
The ceiling of microfinance loans differs from one institution to another, ranging between JOD 15,000 and JOD 70,000.
The network underlined that the active loans surged by 20%, recording JOD 302,000 in 2013. The report showed that the Jordanian microfinance sector has managed to raise the total number of clients directly served with the industry's available financing products to 282,000 clients nationwide.
"Jordan microfinance industry has taken a good leap towards achieving financial inclusion goals. The market is mature comparing to neighboring countries’ markets in MENA region in terms of number of lenders, penetration rates [number of clients comparing to population],depth of outreach [average amount of outstanding loan comparing to GDP per capita], and credit products range offering to productive poor and low income people," the report highlighted, adding that "Today, Jordan has eight active microfinance institutions through 133 branches deployed in all parts of the Kingdom covering all governorates."
The report emphasized that "Generally, any portfolio at risk exceeds six percent should raise a flag of concern"; however, microfinance institutions have an average of portfolio at risk of less than two percent in Jordan.
Source:
Mubasher
