Personal loans in Saudi Arabia

Hi David Evans,

Getting a personal loan in Saudi Arabia will depend on a number of factors. Firstly, it will depend on the particular bank you use and their requirements.

Since 2000, foreign banks are now able to operate in Saudi Arabia. For instance, HSBC now have branches in Saudi Arabia and if you are already a customers of their overseas you might find it easier to get a loan with them.

I suggest you contact the banks directly to get an idea of the requirements to get a loan and the terms of the loans available.

For more information on banking in Saudi Arabia refer to the Banking, Money and Taxes in Saudi Arabia page.

Hope this helps

Shantalie

David - it's not very hard. Although it does vary by bank you can typically apply for a loan after you have completed your 3 months probation period with your company. Your basic salary should be at least SR4-5k per month. If you want a cash loan then banks usually don't give as much for expats (since they can runaway with the money). Banks will usually request you to transfer your salary to them on a monthly basis and also may ask your employer to hold your end of service benefits as a guarantee in case you want to leave Saudi. The amount that they will lend you depends on your salary. The monthly instalment should not equal more than 35% of your monthly pay. Banks are very flexible to buy cars as they keep it in their name until you finish the payments. Cost for loans equals about 2-3% for each year the loan it taken across. For car purchases they will also include full insurance which usually is an additional 3% per year. Car loans usually require a 10+% deposit. Many companies tend to deal with one bank to make it easier for payroll so check with your company. Your company will need to provide a letter to the bank confirming your salary and position etc in order to process the loan. Al Ahli bank and Rajhi bank have on line calculators for loans so you can see the costs and conditions. Google them. You will need to clear all loans before making your final exit from the country.