The bank has fixed SR45,000 as the maximum ceiling for loans in the three categories of marriage, family and home improvement, according to Al-Madinah newspaper.
According to the amendments, marriage loans would be extended normally to those citizens who marry for the first time. Loans would be given for a second marriage under three special circumstances mentioned in the concerned article of the law. If the applicant comes under the purview of any of these extraordinary situations in addition to fulfilling other loan requirements, he is eligible to apply. A citizen is entitled to get the loan for a marriage with a foreign woman if he fulfills the following conditions: The wife must be related to a Saudi woman and hold a card from the Ministry of Interior that guarantees her citizenship rights. The citizen is entitled to get the loan only if he had secured permission from the Ministry of Interior for the marriage.
Regarding loans to families, such loans can be extended to divorcees, widows or abandoned women if they have at least one child to take care of, and this should be testified with signatures of two witnesses if there is no legal document to furnish. The number of minimum family members has been fixed at four and they must be registered at the Civil Affairs Department. Newborns and children who are holders of separate IDs until the age of 21 would be included in the list.
The amendment says that an employee can guarantee two individuals and, at the same time, he can take loans for himself on conditions that one third of his net earning should cover the monthly installment of the three borrowers. The guarantee of a Saudi employee working in either the government or private sector would be accepted as both borrower or guarantor without considering the date of his appointment or retirement. The guarantee of a private employee would be accepted if he is working with any of the banks or leading companies such as the Saudi Electricity Co., SABIC, Saudi Telecom and Saudi Aramco, in addition to conditions that he would be a subscriber to the General Organization for Social Insurance and that both the borrower and the guarantor should sign a bond for an equal amount of the loan.
The amendments also stipulate that the guarantee of a businessman would be accepted under the following conditions: He should have a valid commercial registration and his establishment should have a workforce of at least 50 employees. The businessman should also undertake a written pledge about his personal guarantee in addition to furnishing a permanent address of his firm, attested from the local chamber of commerce. A businessman can act as a guarantor to a maximum three borrowers. He should also furnish a certificate from the Zakah and Income Department.
According to the amendments, a citizen can get a maximum of SR45,000 marriage loan. But for renovation of housing, a minimum of SR30,000 and a maximum of SR45,000 would be given if there are plans for modification or extension works together with renovation.
Regarding family loans, the amendments stipulate that the loan would begin from the minimum amount of SR30,000, and would be increased in accordance with the number of family members with an average SR5,000 per member up to a maximum of SR45,000.
The maximum loan amount would be given to a family whose monthly income is less than SR4,000, or if any member of the family is either physically or mentally disabled. A person who does not have children more than eight years after marriage is entitled to get a minimum loan amount. A citizen is entitled to get the loan only after completion of at least three years of repayment of an earlier loan from the bank.
The Saudi Credit and Savings Bank is one of the important government agencies that provide development loans to citizens. It provides interest-free loans for small and emerging business firms and traders. The bank also gives loans to citizens to encourage them to engage themselves in self-employment ventures. Moreover, it provides social interest-free loans to citizens with limited income to help them overcome their financial difficulties.
