Compare the best options on the market and choose the one which best adapts to your day to day needs.
Further Below: Our Guide To Loans in Saudi Arabia, Everything you need to know.
1. Riyad Bank-Tawarruq
- Offered to applicants with a salary minimum of SAR 3,000
- Offers a flat interest rate of 1.32%
- Flexible repayment period of up to 60 months
- Attractive loan conditions
- Less stringent eligibility criteria
- Unlimited loan purpose
- Does not involve salary transfer
2. Emirates NBD
- Salary minimum of SAR 15,000 for loan applicants
- Favorable interest rates of 7.4% per annum
- Offers loans for various purposes
- Maximum repayment period of 5 years
- Hassle-free application procedures
- Fast concession
3. The Saudi Investment Bank
- Get a loan of up to SAR 1,500,000
- Competitive interest rates
- Same-day loan disbursement once approved
- Tenure period of up to 60 months
- Applicants with stable income are considered
- Provides unsecured loans
- Whole scale digitalized application
Loans in Saudi Arabia, All You Need To Know:
At FUNDGECKO, We assist you in obtaining a loan that best meets your requirements. By giving you all the information you require (including the requirements to meet and the loan terms) prior to entering into a financial product contract, we assist in making the loan decision and application process seamless.
- First time applicants are given loans of small amounts which keeps increasing
- Online mini credits are of small amounts with high interest rates
- Online mini loans are often small in size and high in interest rates
- Online mini loans are repaid after a short time and in a single payment
- Online mini loans are mostly applied for during an economic emergency
- Long term loans have low rates and are big
- Long term loans are repaid after a long time
- Long term loans have a longer application process and more stringent eligibility criteria than online mini-credits
What are loans and how do they work?
A loan is a sum of money that we borrow from a bank or other organization with the intention of repaying it later for a variety of reasons, including making large purchases, supporting a project, paying for tuition and other expenses, and so on. Depending on the company, the loan type, and the payback time, loans come with interest and other expenses. Long-term loans are typically large loans with favorable loan terms, but small loans typically have short repayment terms and high interest rates. Whether or not the applicant satisfies all requirements, a lender is never required to make loans.
Only when a loan is used to help you improve your financial situation can it be considered a good debt. It’s never intended to put you in debt.
Even though they might not tell you why they rejected your application which could harm your expectations for future credit, it is wise to be aware of what to adhere to throughout the application process. Please feel free to get in touch with our FUNDGECKO staff if you have any questions about the same.
Saudi Arabia has attempted to maintain its average loan rate, which as of 2022 is 3.48%, since 1992, according to World Bank statistics. All loans that have been rejected in Arabia for any reason are reported to credit bureaus, where the cause for the rejection is evaluated.
What we should know before taking out a loan in Saudi Arabia
- Arabian financial markets are generally stable, which makes the loan rates in the nation favorable for consumer debts.
- If you submit a loan application and have a bad credit history with the credit bureaus, many organizations will reject it.
- Due to the extremely low interest rates, the demand for consumer loans in the Saudi lending industry has increased recently. Up until the coronavirus epidemic, the nation maintained negative benchmark interest rates for borrowing, which slowed the mergers and acquisitions (M&A) market.
- Before obtaining a loan from a credit organization, do your own research into that institution’s background and reputation.
- To provide lending services, every form of credit institution is required to hold a government license.
- Due to the significant expansion of lending organizations that compete with banks to offer better lending terms, the lending market is becoming more favorable for borrowers.
- Consumer credit regulations in Arabia are defined by the government, however, non-bank lenders may have their own set of requirements for applicants. Therefore, it’s crucial to confirm the conditions of the agreement before applying for a loan.
When is it advisable to apply for loans?
You can quickly escape a dire financial situation with a little loan. Mini loans are what we frequently choose in the event that we require a short financial remedy due to their speed. The borrower will, however, have more bad than beneficial impacts if they are not careful in how they use this form of credit. Knowing the best and worst cases for this credit pays out considerably as a result.
YES, it is advisable to apply for mini-loans if/if not:
- Your needs cannot be postponed
- You’re able to repay the amount due comfortably
- You’re able to assume payment comfortably
- You do not solicit regularly
- You know how much you’ll pay eventually
- You’re informed of how the credit works
- Your needs can be settled at a future date
- You have a recurrent need
- You would want to undertake the loan regularly
- Your need can wait
- You’re not sure of your ability to repay the loan
- You don’t know how much you’ll pay back
- You’re not informed of how this credit works
Instead of experiencing financial insolvency, you ought to be fully prepared before taking out a loan that could simplify your capacity to make ends meet. You will evaluate your circumstances concerning the loan terms using the aforementioned criteria to decide whether or not the credit is the best fit for you.
How much money can I get with mini-credits?
Mini-credits are utilized when a temporary financial repair is required and are frequently small in size. Additionally, they feature exorbitant interest rates and a short repayment period. However, if we show some commitment to the entity, the loan limitations might increase and the circumstances might get better. This is heavily influenced by the borrower.
New clients are given loans based on their salary amounts from SAR 3,000 which keeps increasing based on creditworthiness and transparency.
Mini-credits have Fewer requirements for qualifying than other loan types, which is why the lender might not want to take the risk of making large loans on the first application. After several on-time payments, the lender will try to establish some amount of trust with the loanee.
Continued timely loan payments without any issues may persuade the lender to extend larger loans, lengthen the payback duration, and lower interest rates.
Requirements to access loans in Saudi Arabia
The criteria for obtaining a loan in Arabia differ depending on the company and the type of loan. Online mini-credits, for example, have fewer conditions than long-term loans.
Knowing exactly what you need is crucial before signing a loan contract because an organization won’t tell you why they rejected your applications. This will lessen the possibility of negative credit history being reported to credit bureaus.
Below are some of the most common requirements:
- You are of legal age. Some organizations won’t fund you if you’re under the age of 18, but they will fund someone who is at least 21. This is primarily due to the fact that many people who are 18 are still considered minors.
- Your creditworthiness level: Similar to other nations, organizations in Saudi will only be willing to fund you if you have a solid credit history.
- Residence. You can apply for a loan with either a temporary or permanent Arabian residency permit, regardless of your country. However, some organizations demand that owners of temporary residency permits have had them for at least six months but no longer than a year.
- Some lenders will demand that you’ve maintained a bank account with one of the local banks.
- Income: To be approved for a loan, you must additionally provide documentation of a consistent annual income of at least SAR 3,000. Without a steady source of income, some organizations will finance you.
Documents to be submitted when requesting a loan
The documents that these businesses will ask for are typically straightforward and may be supplied by email, scanning them, emailing a photo, or uploading them directly to the web form. The following paperwork is required before we may apply for a small loan:
- Copy of your passport, ID card, or any valid form of identity
- The last three salary
- Tax compliance certificate
- Copy of residence permit
- Bank account statements
Depending on how it operates and your scenario, an entity can need extra documentation. Because it is quick and easy, many organizations are minimizing paperwork and choosing to have their clients apply for loans online.
How to take out loans online step by step?
Steps to contract a mini loan
- Choose the amount and repayment term
- Fill in the form
- Send the documentation
- Read and sign the contract
The loanee can receive funding through online mini-credits in as little as 15 minutes. Lenders handle the money swiftly and transfer it to the lender in a matter of minutes because the application process is entirely online. It’s a good thing that the application procedure is simple and only requires a few qualifications. The borrower won’t have to send their paychecks to some organizations.
Let’s examine the four most typical steps you’ll probably do while obtaining an online mini-credit:
- Through the online platform of the entity, the borrower asks their preferred loan amount and the repayment deadline. It will be up to you to decide how much money you’ll need and when you can finish paying.
- Fill in all the blank fields honestly and accurately, making sure to include your full name, ID, date of birth, mobile number, address, and email, among other details.
- To evaluate our financial profile, the lender will review our data using an internet system and keep an eye out for anything that conflicts with our bank account. This is the phase that has the biggest impact on whether or not our loan application gets approved.
- You will receive the contract details through email after the lender approves your application. You must read them, make note of any important information, and then sign the document.
To fully understand the contract’s provisions, make sure to take notice of the contract’s fine print at the final step.
A loan should be used properly because it is intended to be good debt. To prevent being overly indebted, only take out loans when you absolutely need them, can afford to pay them back, and have no other options. Always be aware of the terms of the loan agreement to prevent future unpleasant surprises.
About this page, our methodology
About this page: We take great pride in assisting you in obtaining the best financial product that is appropriate for your financial situation. To help you choose the most appealing offer at the moment, we gather the best information about consumer credits, how the various credits work, and how to compare your options.
Source: Information regarding the main characteristics of loans in Saudi Arabia and their current regulation comes from Government websites, World Bank statistics, Saudi Arabian Monetary Authority, among other reference portals
Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.
About Us: FUNDGECKO is a commercial comparison site that focuses on products for personal finance and home improvement. We support our users by assisting them in comparing the financial solutions that are offered on the market as well as by offering comprehensive information that will speed up the decision-making process and enable them to choose the best deal.
Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.