Need extra cash for family issues, emergencies or just to catch up on bills that are due?

Everyone at some point or the other finds themselves in need of some money. The Saudi Credit and Savings Bank (SCSB) has created several specially-designed loan programs for various financial situations, one of which is the Family Loan.

What is the Saudi Credit and Savings Bank?

The Saudi Credit and Savings Bank (SCSB) is a key financial arm backed by the Saudi government. With26 branches in various regions of Saudi Arabia, it provides interest-free finance to Saudi citizens with the following primary objectives:

1. To provide finance for small enterprises, employers and emerging trades and encouraging Saudi citizens to run their own businesses independently.

2. To provide social finance for citizens with limited incomes.

3. To encourage savings for individuals and institutions.

What is a Family Loan? Am I eligible?

The Family Loan is a soft loan under SCSB’s Social Loan Program. The loan targets the low-income segment of the Saudi society.The application process is based on several factors such as employment status, whether you are a  female applicant or a retiree. Below are the conditions to be eligible:

1. Applicant must be a Saudi national.

2. Whether the applicant had previously been approved for a loan, when and the loan amount.

3. If applicant had previously been approved for a loan and had fully repaid the amount in one year or less, they are entitled to a new loan after one year. However if applicant was late in repaying, they must wait for a minimum of three years to reapply.

4. The applicant’s monthly salary must not exceed SAR 10,000.

5. Applicant agrees to repay loan in monthly installments, as determined by the bank.

6. Applicant must not have a commercial license registered with the Chamber of Commerce and Industry.

7. Applicant may apply for a minimum of SAR 1,000 up to a maximum of SAR 60,000.

8. For applicants with a monthly salary of SAR 3,200 or less, there are two options to choose from. Either the applicant can opt for a lower loan amount or must have a trusted guarantor to co-sign.

Other terms and conditions

Before heading out to apply, there are special terms that have to be upheld by family members of the applicant. These include:

1. The per capita income of each family member should not exceed SAR 2,000.

2. Women may apply if they are widowed, divorced or abandoned and have dependent children. She must show proof of her marital status with an official order from a Saudi court.

3. The applicant’s dependent children should be under 24 years old, unemployed and unmarried.

4. The applicant’s handicapped, dependent children are considered eligible regardless of age.

5. Full guardians of orphans are eligible to apply, however they must have documentation from the Ministry of Social Affairs.

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What documents do I need to apply?

Ready to apply? The required documents are:

1. A copy of the National Card and Family Card.

2. A Letter of Employment stating total monthly salary certified by the Chamber of Commerce and Industry.

3. Evidence of an open bank account, bank account number, IBAN and full name of account holder, officially stamped by the bank.

4. Bank statements showing salary deposits for three consecutive months.

5. If applicant is employed, Form 104 filled in by the applicant’s employer stating if the position is in the public or private sector.

6. If applicant is unemployed, Form 105 should be filled in by a guarantor.

7. For retirees, a copy of the pension agreement and an Endorsement and Authorization Form should be submitted.

8. Female applicants must submit a Social Proof Case Form, National Card, Family Card and official court order showing marital status (widowed, divorced, abandoned).

The forms can be printed or downloaded  on the SCSB website.

How do I apply?

Once you have ensured that you have all the required documents completed and in hand, the final step is to submit your application to the SCSB . Here’s what you need to do:

1. You will need to register online through the SCSB website and fill in your full name, National ID number and city where you will be physically applying.

2. The applicant must then take the documents to the nearest branch office of the Saudi Post to be sent via EMS to the corresponding branch of the SCSB.

3. Once, the documents are sent to the SCSB, you may track delivery progress on the Saudi Post website using the EMS tracking number.

When will I know I’ve been approved

The  difficult part of applying for a loan is waiting for the news, if you have been approved or denied. With the adoption of SCSB’s new customer-friendly regulations implemented in April 2014, the waiting game should be relatively quick and painless. According to Ibrahim Honaishel, a SCSB official, a decision is generally made within 5 days from receiving the application.