Bank loans in Saudi Arabia

Expats don't generally take out bank loans, if they do it's a loan for a car usually. Interest isn't charged as that's unIslamic, but fees are. If you leave the country on a Final Exit you won't get out if you owe money. If you leave on an Exit visa and don't return and you owe money, your stay in any GCC country - even just a connecting flight to elsewhere - is going to be very difficult.

Assalam Alaikum,
Hope everybody is in good health.

The process is listed very simple usually for getting a loan approval you required the below documents.

1.Employer's Contract
2. Salary Slip
3. Account Statement for minimum 3 months showing your Salary being credited in the account.
4. The Salary should be transferred on a payroll and Bank Transfer through an other account or cash in hand.
5. The company should be listed in the Bank's Approved Company List

If we can get a loan here in Saudi Arabia then the interest rate will be as low as between 3-5% and the tenure you can choose between 3-5 years  where as in your home country it will be more like 7-10% and the tenure minimum will be 10 years which is very consuming comparatively.

In 2016 I had contacted almost all the banks in Saudi Arabia for a Home Loan as I bought a flat in India but they denied as my company was not listed in their approved list.

If you guys have any more suggestions for loan you can let me know and others.

Thanks

Adil Moinuddin
Dammam.

Dear As I see your profile, which belongs to Mauritius.

  why are you so much interested in KSA? As I see many posts of yours only Regarding to KSA.

ANS:______-->


Hello,

--> Hi

Finances and banking can sometimes be a headache for many expats, especially when it comes to taking out bank loans.

-->Yes, Sure Credit is Credit & Debt is Debt ................ more money is also a headache........


Is it difficult for an expat to get approved for a bank loan in Saudi Arabia?

-->its depends on your Employer... Hows your Employer Image Towards the Country Economically.......

What are the types of bank loans available for expats (mortgage/bonds; business loans; car loans; personal loans; student loans)?

-->car loans; personal loans,  (And also Business Loan if your CALLER (KAFIL) Approve).

What are the general conditions for expats to take out bank loans (interest rates; timeframe to repay loans, etc.)?

--> Depend on Type of Bank........ Kindly Surf listed KSA Banks.... you will Find all Details with Loan Calculator.

Which bank in Saudi Arabia is the most popular or accessible for expats regarding loans?

--> All Banks,       Depend on your Employer which they Prefer you

Would you normally require the services of an accounts manager at the bank in order to facilitate the process of taking out a loan? Is this service free of charge?

--> No, the Service is free- once your loan approved the bank charge will be auto deduct from the amount

What would happen in the case of an unpaid loan if you have to repatriate back to your home country or move somewhere else?

--> Transfer the Balance unpaid Amount of loan to your home country Bank or Somewhere else..................   or if you have sufficient amount you can clear it Before tenure of your loan.

Are there any other options for loans aside from the bank in Saudi Arabia, such as taking out a loan from your bank in your home country, or other types of companies not affiliated with banks, that give out loans?

--> Yes, Depends on your Friend Circle if they give you,   and pay flex according to their dates...............

I had a bad experience regarding bank loan in Saudi Arabia. My bank is SABB-Saudi British Bank and it is just a smooth sailing on the first time I got my loan amounting to SAR 67,000.00. That is equivalent to my 10 months base salary, and it should be payable in 3 years together with the 4% interest. After 1 year of paying my monthly amortization of SAR 1,900.00, I renew it again. The bank, after approving your loan, should simply deduct your old balance from the approved new loan and start paying the monthly amortization from month 1 again, until you finished the 3 years of amortization, or if you plan to renew it again after 1 year, and start all over again. If something happen, and you lose your job, the bank will automatically seize your end of service benefit (ESB). If the amount of your ESB is higher than the loan amount then you can still have money from your employer. But if your ESB is much lower than your loan, the bank will also get your last salary together with your loan and you will end up nothing, and no money in your pocket while going home.

By the way, loan here in Saudi Arabia is always with your Employer Letter of Guarantee saying that you are employed with them contractually and you have to secure Salary Certificates together with the Chamber of Commerce stamp of attestation that the the figure written on it is as per your contract with the company. Banks like SABB, Saudi American Bank-SAMBA, Banque Al Fransi,, I never heard of other bank issuing loan . Aside from employer, Saudi Banks here in Saudi Arabia is maintaining a Credit Bureau, called SIMAH,  an independent institution tasked to track all Saudi Citizens and Expat's credit history. They will secure outputs from that Bureau before they approved your loan.

In my case is different, I lose my job for only 5 months and my visa was not cancelled. Unless your visa is not cancelled, the bank will not read it as final exit. During my 5 months of being out of the Kingdom, my visa is still active until 6 months, my Employer Finance Manager did not pay for my monthly amortization even I entrusted enough money to cover the 5 months of amortization while out of the Kingdom. He did not even warned me of what is going to happen if I fail to pay my monthly amortization.  Coming back in Kingdom is our (i have a wife and 1 son as my dependent in the Kingdom) worst nightmare, both the bank and Simah called me and informed me that I am not paying my monthly amortization for 5 months. For 5 months, they have to seize all my salary and receive nothing.
I am still thankful and more blessed because there are Brothers and Sisters in Christ who understand our situation during those times. They lend money to cover our day to day expenses until we got our first salary on the sixth month. My problem get even worse because, I can't apply for a loan again because of that mistake I committed. I am not sure, if in the future, and how many more years, they will approved my loan application. I finally realized that my Employer Finance Manager, whom I entrusted the money to cover my monthly amortization, who happen to be an expat like me from my same nationality has the same problem in SIMAH long time ago.He did not alarmed me of what is going to happen. He simply let me experience the same experience He has. The money was returned-back to me after so many month's past and many e-mails, going back and forth. I even include the General Manager of the company before it was returned-back to me.

This is a lesson that I want to share, do not entrust money even to your employer finance manager, your loan is your own responsibility. Even I bring my ATM with me in my home country, they will still deduct it from my bank account.

Now the monetary policies change all loans from all banks requires an agreement with the company that the expat works for other thAn that it is impossible to get a personal loan and soon to be with the credit cards as well

The following are the basic rules to get loans from banks


1: Your current Employer must be an agreement with the bank.
2. Bank Saudi fransi is the most popular bank to award the loan in KSA. But for expats now their new requirement is minimum SAR 12,000 . Earlier they are offering loan even on SAR 5,000.
3: Expats can only apply Car loans & Personal loans
4: Minimum salary requirement varies from bank to bank some Banks are offering even on SAR 7,000 .
5: The normal interest rate is between 3.5 to 5 % for expats
6: Normally you can apply for loan through every bank website .Bank representative will callyou back and gives all related information our call
7: Salary transfer is required in most cases
8: Some personal organisationa were also offering loans but there T&C's are very tough and interest rate is very high.
9: Initial services i.e. lian information, eligibility evaluation etc is free of charge but if loan is approved you have to pay nominal processing charges.

Hi as far as I know about the banks in saudi Arabia its hard to open an account for foreigners they need papers from sponsor and all that business and I don't think its easy to get loan from bank in saudi arabia

you should visit that bank and open bank account on that bank where yourcompany is dealing business transactions like transferring payrol etc. that bank called approved bank for you to get loan.

also your work life in that company is important you should complete at-least one year in the same company..

Dear Priscilla,

it is very easy to get bank loan specially on cars. But your company sponsor should support you with some documents like contract copy, salary certificate etc.
as per my knowledge SAMBA bank comes first for personal loan. and depends upon your current salary and duration you work in that particular company.

hope you got little bit idea for loans for expats in saudi arabia.

Thanks and Regards
Laeeq Khan

is there an age limit to apply for a personal loan in
fransi  bank

SABB bank is the best for me.. they are very friendly.. good loans offers.. and yes.. you must provide all thee documents mentioned above..

Dear Adil Moinudin

Though its a long time post but could you let me know if you were able to get the loan . Similar to your situation my company is not listed in Banks Approval list. ?


Thanks

Dear
I am Also Sabb Account holder .
But unfortunately my company is not listed in Sabb Employer List?

I would like to know where I can get a personal loan without salary transfer my minimum salary is 3000 riyals only
I hope you can refer any lenders here in Saudi on international lenders