Saudi Credit and Saving Bank to start financing SMEs from today

Saudi Credit and Saving Bank to start financing SMEs from today
Updated 02 September 2012

Saudi Credit and Saving Bank to start financing SMEs from today

Saudi Credit and Saving Bank to start financing SMEs from today

TAIF: The Saudi Credit and Saving Bank will start receiving tomorrow applications on its electronic site from citizens to finance small and medium enterprises, Al-Madinah daily newspaper reported Friday quoting at official source at the bank.
The source said the bank will finance projects whose costs will range between SR 300,000 to SR 8 million.
He explained that the SR 300,000 projects will be fully financed while the financing will be 90 percent for the projects costing between SR 1 million and SR 2 million, 80 percent for the projects which are above SR 2 million until SR 3 million, 70 percent for those ranging between SR 3 million and SR 4 million, 60 percent for the projects costing more SR4 million and less than SR5 million and 50 percent for the projects which will cost about SR8 million.
The source said preference in financing will be given to the projects which are creative and non-traditional, projects in remote and underdeveloped areas and projects that will achieve the highest rate of Saudization.
“The financing-seeking citizens will be called for personal interviews to make sure that they are holding qualifications in the specialty of the project and that they have developmental conduct,” he said.
He said guarantees from borrowers will include mortgaging the project, leasing of non-residential buildings, payment bonds that will cover the value of the financing and a guarantor.
He said the loan applicant should be a Saudi national with enough experience or the suitable qualifications to manage the project.
Explaining the technical conditions that the bank will be asking for to provide the financing, the source said, among others, they include the feasibility of the project, the environmental safety and the highest rate of Saudization of jobs. “The bank maintains the right to cancel the financing and confiscate the project for any serious violations during the execution period,” he warned.