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 Personal 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
Personal Loans in Saudi Arabia, All You Need To Know:
FUNDGECKO is here to take you to the ideal consumer credit that’s consistent with your needs and quirks, assisting you in making an easy and quick financial selection. Our responsibility is to inform you of all the current market offers, how they operate, and all you should know before obtaining consumer credit.
The current market for personal loans
FUNDGECKO gives you a monthly update of the most relevant news regarding consumer credits. Take a quick read of what affects credits over time.
- Lending interest rates have been declining from a rate of 3.12% in July to 2.66% in August. These changes are creating a positive impact on borrowers as the burdens of huge interest rates are well catered for.
- Inflation rate reports are stated below the forecast given which gives a positive rise in the GDP to 9.9 %. Better living is also enhanced as the loan value increases to 14.10% in June 2022.
- Due to their lack of close ties to the Russian nations, Saudi Arabia’s financial institutions are shielded from the negative impacts of the Russian-Ukrainian war. As a result, their consumer credit facilities are steady and they are less directly exposed to the repercussions of conflict.
- The Arabian economy’s banking system expansion is focused on corporate lending and mortgage loans related to their 2030 goal; as a result, they hardly ever depend on Russia or Ukraine. The administration has committed to follow through if the war has an impact on Saudi Arabia
How to compare online loan offers?
Before choosing a course of action, you should carefully analyze all the variables that affect loans. In other words, you’ll need to search through more than two offers using the pertinent criteria.
Comparing offers is one way for a shopper to find the best product available. Users can choose a product that is reasonably priced, of great quality, and precisely fits their needs by using the right comparison tools. The same is true of loans. The benefits of finding the best loan for your requirements include an easy repayment process and a better financial future. This necessitates thorough research before committing to a certain loan kind.
The client will need to compare every aspect of these loans that has an impact, including interest rates, repayment terms, sums, the cost of the linkages, and commissions. Rates on loans vary depending on each factor. Always go for a loan with more flexibility.
How to use FUNDGECKO to get personal loans
FUNDGECKO by outsourcing the most pertinent information about loans, including their features, rules of operation, and conditions, it aims to make the user’s job easier. At the end of the day, the user will have the greatest knowledge necessary and know how to obtain the best loan anytime they require it.
Our site requires the user to follow the following steps:
- Compare the different loan offers you’re interested in for free.
- Go through the small print of the contractual terms to learn about its conditions and terms of operation.
- In case you develop any questions or doubts along the way, FUNDGECKO will step in as soon as you reach out so that you may have confidence in choosing a consumer credit of your preference. Click on “Contract” to get to the entity’s website and our experts will walk you through the whole application process.
- Our clients always want to come back and share their experiences with us. Hence, we’ve provided a comment section where the user is free to share with newbie users about our services.
Why do you look for personal loans?
There are several factors to consider before applying for a personal loan. A personal loan is your best option if you want to make a significant purchase, such as a new car, smartphone, kitchen appliance, vacation, or project.
The following are some other uses for personal loans:
- Finance your wedding
- Finance your studies
- Finance vacation or trip
- Furnish or renovate your home
- Finance your projects
- Debt coverage
- Purchase home appliances and electronics
- Finance your health and beauty
Note: Personal loans are general, so you might choose a loan that is tailored to your needs depending on what you plan to use it for. For instance, because personal loans have high interest rates, a student loan is preferable to one taken out to pay your tuition. Therefore, speak with your lender to determine whether there are any better lending options.
How to apply for a personal loan?
The short, simple application process for personal loans is one of the reasons why they are so popular. Some organizations will demand the borrower to physically apply to their offices, even if you may have the ability to do so online. Some of the most typical actions to take when using personal loans are listed below.
- Compare loan varieties. Working with a single business will not be an option because Saudi Arabia has numerous personal loan lenders. Before choosing a choice, get information on the terms of the loan from at least three different personal loan providers.
- Before applying to the lender, whether in person or online, be sure to complete it with the most accurate and genuine information possible about yourself as well as the terms of the personal loan (purpose, amount, and period).
- Pre-approval notifications are sent out immediately for online applications, and two days later for paper applications.
- Send the necessary paperwork to the organization in person or online using one of the many available methods.
- If the organization accepts your application, you will receive pre-contractual information, which you must read to understand the terms and conditions of the contract, including the sum, period, interest, commissions, etc.
- If we like the deal, we’ll sign the contract (in the office or by digital signature).
- Obtain the funds. It may be paid to us right away or for a maximum of 48 hours, depending on the lender.
Requirements for personal loans in Saudi Arabia
According to Arabian Law, there are some standards you must satisfy before your loan application is authorized. Some of the most typical needs are listed below:
- Be of legal age. The legally required age is 21 years though some lenders would have their age cap that will guarantee one loan application
- Be an Arabian resident at the time of application. Some lenders include Liechtenstein residents in this criteria. Some creditors will also lend you money if you live in the canton that the organization serves.
- You have a reliable source of income. In Saudi Arabia, borrowers are not qualified for loans while they are on probation.
- have a reasonable amount of debt. Our prospects of obtaining finance again will be lowered if we have large outstanding balances on other credit. Our amount of debt should be in line with our income.
- Previous creditworthiness should be positive. This is inclusive of your credit records with your former lender.
We must exercise responsibility and refrain from taking out personal loans if we cannot handle their repayment. In that regard, it is advised to set aside no more than 35–40% of your income for paying your loan payments. To determine the overall cost of the credit and determine if we could or could not return it, we can utilize a personal loan simulator.
Documentation for applying for a personal loan
Besides presenting the required proofs, additional documents for more verification are always required for more compliance and eligibility. Ensure you provide accurate documents to increase your chances of loan approval. Below are the commonly required documents:
- Copy of your identity card or another legal identification document
- Bank statement showing your recent monthly earnings and outgoings
- Evidence of income. Provide the last three pay stubs, depending on the company.
- Most recent tax filing (especially if we ask for large amounts)
- Have a proposal form with the loan’s purpose explained on it. Small loans are exempt from this.
You can avoid a lot of paperwork by applying for a personal loan from a bank where we have an active account and where your receipts and income are reported.
Who grants personal loans in Saudi Arabia?
Banks no longer have a monopoly on lending, as they had for the previous decades. This is geared by the entry of other financial institutions into the Arabian financial sector increasing competition as a variety of products are presented in the market.
This section will list every lender we could discover and describe how their loans work:
Entities that grant personal loans:
- Bank entities
- Credit Financial Institutions (CFE)
- Private Lenders
- P2P Lending Platforms
Obtain financing through banks
- Fewer eligibility procedures compared to other credit institutions
- Wide range of loan products
- Long and flexible repayment terms
- Friendly interest rates
- Higher loan limits based on credibility
- Complex and tiresome application procedures
- Seniority is a key factor considered
- More related products in the same group might cause confusion
- Has attached commissions which make it more expensive
- Concession is time consuming
Funding through Credit Financial Institutions (CFE)
- Lower interest rates
- Loan purpose is not limited
- Laxer eligibility terms
- Fast application process
- Cheaper as commissions attached are limited
- Smaller loan limits
- Stringent eligibility criteria
- Credit history limits competence
Getting loans online with private companies
- Fast payout
- Fast application process
- Few eligibility criteria
- Loans accessible to new applicants
- Costly due to high interest rates
- Seniority is a factor of consideration
- Greatly affect your credit history
Financing through P2P platforms
- Seamless application process
- Offers a variety of products
- Top loan conditions
- Expensive due to higher rates
- Long hiring time
- Past credit history limits your eligibility
FAQ: Frequently Asked Questions
What is a personal loan?
When borrowers are facing a financial emergency, they turn to personal loans as consumer credit. The borrower receives a specific quantity of money from the lender, which must be paid back after the predetermined time. Due to interest, charges, and other expenses, the amount to be refunded is always greater than the principal amount we receive. The lender may require us to make payments in full at once or in installments, depending on the terms of the agreement.
Personal loans are of small amounts with high interest rates as compared to other loans. Additionally, their repayment terms are brief hence short term financial needs are considered. Therefore, they are typically used for small financial emergencies like paying off debt, paying for medical expenses, finishing a project, etc.
Why don’t you give me personal loans?
There are a few causes for the denial of your loan application. The lender is not required to give you the money. Therefore, if you make even one error, you’ll be automatically denied the loan. Your application will be denied if you have a poor credit history with any Saudi credit bureau. Additionally, you might not match the prerequisites we outlined above, such as those related to your place of residence, your goal, your employment situation, and your age.
What is the binding offer of a personal credit?
The lender will always make you a legally binding offer before you sign anything committing you to a credit, including the terms and circumstances of the loan agreement. You will have 14 calendar days to review it and weigh your alternatives.
Can personal loans be paid in advance?
Arabian law allows for the possibility that you may want to repay a credit before the predetermined deadline. The full amount, which includes the principal amount, interest, fees, commissions, and any other costs, will need to be covered by the applicants. You must, however, give the lender advance notice before making the payments. Certain organizations may impose an early repayment fee.
What if I take out a loan online and then regret it?
Loan withdrawal is acceptable in Arabian laws within the first 14 days after loan allocation without any attached fees. Any withdrawal past this period might attract some fines and penalties. The borrowers should therefore withdraw within the required period to avoid additional charges.
What happens if I don’t pay back a personal loan?
The Arabian laws provide security to credit lenders that protect them against losses caused by negligence. Taking out a loan is a commitment that one should purpose to satisfy. Failure to repay the borrowed amount is illegal and will subject you to punishment by the credit authority. This will also create a negative reputation for your credit history which limits your loan eligibility in the future.
When to Apply for a Fast Loan
You require immediate financial assistance, presumably as a result of an emergency. Fast loans are tiny in amount, have a high interest rate, and have a brief repayment period. Only when a purpose is urgent and cannot wait until your next paycheck is it applied for a loan. Therefore, it’s a good idea to borrow sensibly and pay back a loan before taking out another. Their flexible and attractive terms should not easily lower you into debt.
Only if you can comfortably and on time assume repayment obligations will a loan be beneficial. Make sure to carefully study the contractual conditions that the company sends you in order to prevent any unexpected payments in the future that will lead to bankruptcy or insolvency.
It is advisable to always avoid debts if the financial needs can be postponed to a future period. This keeps the borrower safe and more responsible when taking loans.
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.