Samba-REDF deal to finance housing projects

Housing Minister Shuwaish Al-Dhuwaihi and Samba Chairman Eissa Al-Eissa have jointly launched a housing loan program introduced by the bank in association with the Saudi Real Estate Development Fund.
The program will enable Samba customers who have applied for REDF loans to own a suitable house on the basis of a financing scheme that follows Shariah principles, said an official statement after the signing ceremony.
Speaking to reporters, Al-Eissa said the program goes in line with the government’s initiatives to solve the country’s housing problem and enable Saudis to have their own homes. “This will also strengthen partnership between public and private sectors,” he said. The additional finance provided by Samba would help Saudis build houses that cost more than SR 500,000, the maximum value of loan given by REDF, he pointed out.
Al-Eissa said Samba’s agreement with REDF reflects its desire to expand its financing programs through channels having developmental dimensions, adding that it would serve the interest of the Kingdom and its people.
The bank’s additional housing finance scheme was designed with a long-term vision and offers added value to the bank’s customers. “It also goes in line with Samba’s efforts to enable citizens to own their houses following easy methods,” Al-Eissa said.
The additional loan is given to those Saudis who are entitled to receive a housing loan of SR 500,000 from REDF. The REDF loan will be considered the first installment for purchasing a house while the bank will pay the full value of the house and the customer has to pay back the loan in monthly installments.
The scheme covers various types of homes including villas, duplex and flats. This finance is provided to a customer only after he/she receiving a preliminary confirmation of REDF loan, the bank said. The house will remain in the bank’s ownership until the customer pays back the loan in easy installments.