Bank drops loan co-signer requirement

Bank drops loan co-signer requirement
Updated 30 August 2012

Bank drops loan co-signer requirement

Bank drops loan co-signer requirement

JEDDAH: The Saudi Credit Bank has dropped its co-signer condition to ensure bills for women applying for small loans, a source revealed to Al-Watan newspaper. The bank will only require an attendance surety from relatives, said the source.
These changes are said to encourage people to apply for loans after the bank found that the co-signer requirement was an obstacle for many women who wanted to start small businesses.
The bank is waiting for municipal approval to include the projects within its women’s business control division. The bank, the source said, wants projects such as beauty salons, ready-to-wear shops and tailor shops to fall under the control of the municipality.
The bank will filter the applicants through its website as a step before approving and training them on how to manage their business in three weeks. The training will be conducted in conjunction with the National Entrepreneurship Institute (Riyadah) in Riyadh. The institute is a partnership between the public and private sectors.
Women with expertise in business management will train the applicants at the industrial secondary schools at nighttime.
The Saudi Credit Bank and Riyadah are cooperating to promote the self-employment culture and develop small businesses by preparing specialized cadres in entrepreneurship and business development through approved centers.
Applicants should be Saudis, aged 18 or above and have a project idea amounting up to SR 300,000 that complies with safety and hygiene standards. Applicants are also expected to be qualified to run their own project in a fulltime job in addition to not having other businesses already.