Our Guide to Personal Finance in Saudi Arabia
You can now search and compare over 30 personal loans in the Kingdom of Saudi Arabia. Your search criteria can be refined based on your needs, i.e. a shariah compliant or conventional personal finance, is a salary transfer required or not and more. Souqalmal.com will allow you to compare all the different personal finance products offered in the market and pick the product that is most suited to you.
What should you know before you decide to apply for a personal finance in Saudi Arabia?
Across the various banks in Saudi Arabia, you can now compare over 30 personal loans and choose the one that matches your financial requirements and eligibility.
1. On Souqalmal.com, you can start your search by choosing whether you want a Shariah Compliant or a conventional personal finance. You can filter your search results by Islamic or conventional on the search box.
2. How much do you need? The loans or finance options listed on our website will give you the maximum finance amount the banks in Saudi Arabia offer however, the final amount given to you will be based on which employer you work for, how much your monthly salary is and whether you have any other financial payments going out.
3. Every personal loan offered has a minimum salary criteria and a transfer salary requirement. You can sort by minimum salary on the website and look at the products that fall within your eligibility. And then you can look at the salary transfer requirement. General rule is that a personal loan or a personal finance product with a salary transfer has a lower profit rate than one that does not require a salary transfer.
4. What is the rate the bank is quoting you – Flat or Reducing? The difference between a flat and a reducing rate is the calculation method, whereby a flat rate is calculated on the principal loan amount you have taken from the bank for the full duration of the finance while the reducing rate is calculated on the outstanding balance. A personal loan offered to you at a flat rate of 4.41% is the same as a personal loan with a reducing rate of 8%. We provide you both rates on the website so you can compare products side by side and the calculation we currently use is dividing the reducing rate by 1.814 to get the flat rate.
5. There is an upfront fee charged by the banks in Saudi Arabia to process your personal loan and this amount can vary from bank to bank and personal finance product to another so make sure you are aware of the fees.
6. Do you think you would pay your personal finance ahead of the agreed time? The common law for Islamic personal finance is that you need to settle the agreed profit amount in full. However banks in Saudi Arabia can offer you a rebate or a discount on the profit amount as a gesture of goodwill at their end.