MAKKAH, 7 June 2008 — The Saudi Credit Bank has launched a project to provide interest-free loans to underprivileged people, especially widows and divorced women, according to Abdullah Bashmakh, manager of the Makkah branch of the bank.
Giving details of the family credit scheme, Bashmakh said, “A widow is eligible for the loan if she is 25 years old, but the age restriction can be waived if she is supporting children.”
He added that under the scheme the applicant’s income should be not more than SR5,000 per month and there should be no fewer than three members in the family. The loan amount is SR20,000 and can go up to SR30,000 depending on the number of children, Al-Madinah newspaper reported, quoting the bank official.
Bashmakh said his branch alone had distributed loans worth SR660 million to 38,767 beneficiaries. The loans included those for weddings, house repairs, buying cabs and opening small businesses. Some 1,200 taxis have been bought with SR81 million provided by the bank in loans to Saudis.
A man is eligible for a marriage loan of SR30,000 if his monthly income is below SR6,000, and his marriage contract was signed less than 24 months ago. If the man’s monthly income is above SR8,500, he can claim a loan of SR40,000, the bank manager said.
The conditions laid down to grant a SR30,000 house repair loan include that the applicant’s monthly income should not exceed SR5,000 and he should produce the ownership document of the property and the municipal license granting permission for the works. The loan amount could be increased to SR40,000 if the applicant intends to make alterations other than the repair.
The bank also provides loans for those who wish to open small businesses in the trades in which they are qualified. To get this loan, an applicant should be a qualified diploma holder in any trade and the establishment he wants to open should be in the same trade.
The loan amount can be up to SR200,000, depending on the requirements of the trade. Small clinics and pre-primary schools are also included in the scheme.
Both men and women can apply for most loans. The bank receives an average of 50 loan applications every day. There are separate counters to serve women customers. The manager noted that the loans could be repaid in easy monthly installments.
