Can Expats take loans from Saudi Banks?

If you have account in a bank say like in SABB

It is easy.Call them and ask for personal loan

they will visit you and guide you
A company letter is must.
Try
Good Luck
if you get offer me a cup of tea

AMIR75 wrote:

If you have account in a bank say like in SABB

It is easy.Call them and ask for personal loan

they will visit you and guide you
A company letter is must.
Try
Good Luck
if you get offer me a cup of tea

Yep, my Dad has an account at Saudi Hollandi. Would check that. I just thought that like all other aspects., getting a loan for expat must be tough too.

SeenSheen wrote:

Yep, my Dad has an account at Saudi Hollandi. Would check that. I just thought that like all other aspects., getting a loan for expat must be tough too.

Its not that tough, Infact SABB is offering 50,000/-SAR for 1 Year Period without Interest. Definitely with minimal processing charges. Check it out with your bank, different banks have different schemes.

saimans wrote:

SeenSheen wrote:

Yep, my Dad has an account at Saudi Hollandi. Would check that. I just thought that like all other aspects., getting a loan for expat must be tough too.

Its not that tough, Infact SABB is offering 50,000/-SAR for 1 Year Period without Interest. Definitely with minimal processing charges. Check it out with your bank, different banks have different schemes.

Wow- even that would do. I guess only for those who have an account at SABB.

Well, on a side-note, I read in my Economics curriculum that interest rates are set by central bank, and they have to be followed by the commercial banks. Maybe that applies to UK only.

Somebody help me.
Im a new here in jubail saudi. I want to know how much i can loan to SABB bank..
I have 7000 riyal basic salary.

Pleasw help me

It is best for you to visit sabb and talk to them. Your company should have corporate agreement with them

Thank you Mr for the information.

SABB must not do islamic banking.. since someone mentioned interest in an earlier post

SABB has "Amanah" product line that as per them is based on Islamic principles. But how much do they adhere to Islamic principles is another discussion.

Hello Friends,

I was hoping that the members could come to some kind of understanding on this subject without my intervention.

Firstly. almost all  banks have a system of lending  some kind of 'Personal Loan' and this facility is mainly for expatriates ( since Saudis qualify for grants and other funds available to them).

The banks need two assurances, a) The applicant's employment's  stability in term of his salary, designation and repute of the employer b) Initially, banks wanted 'guarantees' from employers which very few HR managers agreed upon, now most banks need 'a letter of recommendation' or 'Reference' which actually binds the employer to inform the bank in case the employee decides to leave the employment.

The limit of the loan is typically equivalent to up to 10x   take home monthly salary, different banks interpret take home differently, some  include a part of the housing allowance and commission in it.

Typical interest charged is between 3 to 3.5 % per anum,  (beware banks are very clever at charging application processing fees, front end fees also).

Rareshine, many expats confuse Islamic banking as 'interest free banking' this is not true, in Islamic banking you still need to pay 'the cost of profit sharing' or 'partnership' ( called Musharika, Mudaraba, Murahaba in Islamic banking terminology) but for practical purposes it is one and the same thing:

In the real life, there is no free cup of tea

I'm happy as ever you intervened ! I shall brush up on that halal profit sharing