Banks Association: Not Passing Higher Interest Rates on to Individual Loans Aims to Enable Borrowers to Meet Their Financial Obligations

Al-Taj News – Director General of the Association of Banks in Jordan Maher Al-Mahrouq said Sunday that the decision not to pass higher interest rates on to individual loans in the local market aims to enable individuals to meet their financial obligations.

Al-Mahrouq stressed that the adjustment in interest rates will have no impact whatsoever on loan installments for individuals borrowing from all banks operating in Jordan, noting that the interest rate increase will also not affect the total value of the loans.

Regarding deposits, Al-Mahrouq said the matter is subject to the relationship between the bank and its customers.

He noted that new loans are subject to future agreements between the bank and the customer, which is why the decision concerns only loans currently outstanding.

He explained that total outstanding loans to individuals reached approximately 14 billion Jordanian dinars as of mid-2026.

The Association of Banks in Jordan announced Sunday that banks operating in the Kingdom will not pass on the increase resulting from the Central Bank of Jordan’s decision to raise the interest rates on monetary policy instruments by 25 basis points to the interest rates on existing loans granted to individuals. Their monthly installments will therefore remain unchanged as a result of the increase, sparing borrowers additional financial burdens and supporting their ability to meet their obligations.