Personal Loan in Saudi Arabia

The trail of life is unexpected that goes through numerous ups and downs like a roller-coaster ride. At one point in time, all of us have felt the need for immediate financial assistance at minimal documentation and conditions which is really hard to avail of. In order to become more efficient and user-friendly banks and financial institutions understood the need for a loan that fulfills the instantaneous needs of a customer without collateral. 

Personal loans in Saudi Arabia are unsecured forms of loans that are designed and developed with the objective to cater to a wide variety of needs for all types of customers. The best part about a personal loan is that the loan seeker does not need to pledge any form of security or collateral to obtain financing from the bank. Personal loans in Saudi Arabia can be used for managing travel expenses, wedding expenses, medical emergencies, educational expenses, etc. 

Every time an individual thinks of opting for a loan the first thing that strikes their mind is the interest rate applicable on the financing. Personal loan in Saudi Arabia is available at a wide bracket of interest rates depending upon the financial institution. 

Personal loan in Saudi Arabia is available at two types of interest rate i.e., flat rate and reducing rate. On a broader level, the interest rate varies from 1.2% -9.9% as set-up by the bank. As the interest rate is a crucial component of any loan it is vital to make a thorough assessment before opting for a personal loan in Saudi Arabia. 

The financial market in Saudi has grown exponentially within the past few decades which has led to an increase in the number of personal loan providers. Here’s a quick rundown on some of the major banks and financial institutions that offer a personal loan in Saudi Arabia. 

Repayment Tenor

Repayment tenor is referred to as the period after which the borrower has to return the borrowed amount to the financial institution with interest. In the case of personal loans in Saudi Arabia, most of the banks provide a repayment tenor of up to 60 months i.e., 5 years. If the borrower is unable to return the loan amount within the repayment period the bank charges a late fee. 

The eligibility criteria for a personal loan in Saudi Arabia is bank-specific and varies from bank to bank. Here’s a rundown of some of the general eligibility criterion-

• The minimum age for applying is 21-23. 
• Some banks require salary transfer to their banks
• The minimum employment period of 1 year with the current employer

Documents Required 

The following documents are required to apply for a personal loan in Saudi Arabia.

• Identification proof
• Employment certificate 
• Bank statements
• Duly filled application form

Passport and Visa in case of expatriates

The eligibility criteria for a personal loan in Saudi Arabia is bank-specific and varies from bank to bank. Here’s a rundown of some of the general eligibility criterion-

• The minimum age for applying is 21-23. 
• Some banks require salary transfer to their banks
• The minimum employment period of 1 year with the current employer

The following documents are required to apply for a personal loan in Saudi Arabia.

• Identification proof
• Employment certificate 
• Bank statements
• Duly filled application form
• Passport and Visa in case of expatriates