Features:
Eligibility Criteria
• For Saudi nationals only
• Age of Applicant: Minimum age is 20 years and maximum age at maturity is 70 years
• Applicant must be listed on the REDF’s and Ministry of Housing’s finance lists
• Applicant must open an Account with SAIB and assign salary
• If the amount of first tranche of 15% is higher than the land value, the lesser amount will be taken.
• Employment: Retirees and employees of government, semi-government, military and private sectors (Bank’s approved list of companies)
• Service period:
For Government Sector: 1 month with current employer
For Private Sector: 3 months with current employer
The Saudi Investment Bank - Self-Construction Finance :
Self-Construction Financing is a product of SAIB in collaboration with REDF, which allows customers to get financing against their owned residential land to fund the construction of their home. Customers can also avail the benefits offered by REDF under Madoom Program with this product. Customers can get financing from the Bank, which will be paid to them in tranches, based on the construction progress.
Flat Rate
7.40%
Down Payment
Monthly Payment
Minimum Salary
Fees & Cost
1% of the finance amount up to a maximum SAR 5000
Benefits:
Shariah compliant financing, based on Commodity Murabaha.
Down payment
The customer is not required to pay a down payment in cash. The land value will be considered as down payment.
Financing amount will be 90% of the land value + future construction value (for first house).
REDF Coverage
REDF will cover profit portion of the finance up to a maximum finance amount of SAR 500,000 through Madoom Program.
Takaful Life Insurance
Free Takaful life coverage against death or permanent disability, God forbid, without any medical test for finance up to SAR 2,500,000.
Property Insurance
Free Takaful Property coverage against fire and natural disasters such as floods, storms, earthquakes and resulting damages.
Debt Burden
Maximum debt burden ratio (DBR) is 65% out of the gross income.
Disbursement Schedule
Disbursement Schedule as follows: 15% upon commencement of construction, and subsequently 25%, 25%, 35% (provided that construction should be completed within of 36 months of financing disbursal).
Required Documents:
• Filled finance application form
• Copy of National ID
• Introduction letter from customer’s employer
• Construction plan
• Copy of land title deed
• Salary transfer letter
• Account statement of the last 3 months showing last 3 salaries, verified from the previous bank
• Copy of the “Work ID Card” specifying rank/position (to be taken post sighting of the original), if any