Glossary of Credit and Insurance in Morocco
All financial terms explained simply: home loan, Mourabaha, bonus-malus, APR, and more.
AMO (Compulsory Health Insurance)
Assurance Maladie Obligatoire. The basic health scheme managed by CNSS (private sector) or CNOPS (civil servants). Covers approximately 70% of approved medical expenses.
Learn moreDown payment (Apport personnel)
The amount the borrower contributes from their own funds to finance part of their purchase. Typically 10% to 20% of the property price for a home loan in Morocco.
Learn moreBorrower insurance (Assurance emprunteur)
Compulsory insurance taken out when obtaining a home loan, covering death, disability, and sometimes job loss. Guarantees loan repayment in the event of a claim.
ACAPS
Authority for the supervision of insurance and social welfare. The regulator of the Moroccan insurance market.
Bank Al-Maghrib (BAM)
The central bank of Morocco. Sets the key rate that influences commercial bank lending rates. Currently at 2.75%.
Learn moreBonus-malus
A coefficient system applied to car insurance. Each claim-free year = bonus (-5%). Each at-fault claim = malus (+25%). Ranges from 0.50 (maximum bonus) to 4.00 (maximum malus).
Learn moreParticipatory bank (Banque participative)
A bank operating on Islamic finance principles, without interest (riba). 5 participatory banks in Morocco: Bank Assafa, Umnia Bank, BTI Bank, Bank Al Yousr, Arreda.
Learn moreBorrowing capacity (Capacité d'emprunt)
The maximum amount a bank will lend to a borrower, calculated on the basis of income, existing debts, and the maximum debt ratio (45% in Morocco).
Learn moreCNSS
National Social Security Fund. Manages the social security of private-sector employees in Morocco (AMO, family allowances, retirement).
Learn moreBroker (Courtier)
An independent intermediary who compares offers from several banks or insurers to find the best conditions for their client.
Earmarked loan (Crédit affecté)
A consumer loan tied to a specific purchase (car, appliances). If the purchase is cancelled, the loan is cancelled too.
Daam Sakane
A Moroccan government programme to help first-time buyers access property. A direct grant of 100,000 MAD for first-time buyers with a net income of up to 20,000 MAD/month, for a property worth up to 700,000 MAD.
Learn moreRegistration duties (Droits d'enregistrement)
A 4% tax on the property price, paid at the time of purchase. Part of notary fees.
Learn moreProcessing fees (Frais de dossier)
Fees charged by the bank for reviewing and processing your loan application. Generally 0.5% to 1.5% of the borrowed amount.
Notary fees (Frais de notaire)
All costs related to a property purchase: registration duties (4%), land registry (1.5%), notary fees (1% + VAT). Total: approximately 6–7% of the property price.
Learn moreIRA (Early Repayment Penalties)
Penalties charged by the bank for early loan repayment. Capped at 2 months of interest in Morocco (Law 31-08).
Ijara
A lease contract in Islamic finance. Ijara muntahia bi tamlik is a finance lease where the asset is transferred to the lessee at the end of the contract.
Mourabaha
A sale contract in Islamic finance. The bank buys the asset and resells it to the client with a fixed, pre-agreed profit margin. No variable interest rate. Current margin in Morocco: 4.5% to 6.5%.
Learn moreMonthly payment (Mensualité)
The fixed amount repaid each month on a loan. Comprises the repaid principal + interest (or the margin for Mourabaha).
Learn moreMulti-risk home insurance (MRH)
Insurance covering all dwelling risks: fire, water damage, theft, liability. Compulsory when taking out a home loan.
Learn moreLoan consolidation (Rachat de crédit)
Combining several loans into one, with a single — often lower — monthly payment. Offered by banks and finance companies.
Learn moreRemaining disposable income (Reste à vivre)
The amount left after paying all monthly bills and loan instalments. Moroccan banks require a minimum of 3,000 to 5,000 MAD per person.
Civil liability (RC / Responsabilité Civile)
Insurance coverage for damage caused to third parties. Third-party car liability is the legal minimum compulsory in Morocco.
Takaful
Sharia-compliant insurance based on the principle of mutual solidarity. 3 Takaful companies in Morocco: Wafa Takaful, Takaful Al Akhdar, Takaful Umnia.
Learn moreKey rate (Taux directeur)
The interest rate set by Bank Al-Maghrib at which commercial banks borrow from the central bank. Currently 2.75%. Influences all lending rates in Morocco.
Learn moreDebt ratio (Taux d'endettement)
Ratio of monthly loan payments to net income. Capped at 45% in Morocco per Bank Al-Maghrib recommendations.
Learn moreAPR (TEG — Taux Effectif Global)
Rate including all loan costs: nominal interest + processing fees + insurance + guarantee. The only rate that allows a true comparison between offers.
Comprehensive insurance (Tous risques)
The most complete car insurance formula. Covers damage to third parties AND to your own vehicle (collision, theft, fire, broken glass).
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