22 March 2014
The Saudi Credit and Savings Bank plans to offer its services to a larger number of individuals with low incomes by adopting customer-friendly regulations, a bank official recently asserted.
"Our new regulations will enable the credit bank to issue loans to 25,000 applicants every month for a total value of SR1.5 billion," Ibrahim Al-Honaishel, a bank official said in a statement to a local business daily.
According to the bank's amended statutes, which were endorsed by the bank's board of directors on Monday, the salary ceiling for social loan eligibility will be raised to SR10,000 and the credit limit for a loan will be increased to SR60,000, a local daily reported Tuesday.
The amendments, which will take effect mid-April, have also done away with any age stipulation for family loans. The amendments link the number of a loan applicant's dependents to his income, which is set as SR2,000 for each family member.
The period of eligibility for the bank's marriage loan is fixed at 12 months from the date of the applicant's marriage contract, while the period between the two loans has been reduced from three to one year.
"Currently there is no waiting list for applicants to the social loan as a decision is made within five days upon receiving the application," Al-Honaishel said, adding that previous applicants can renew their applications to benefit from the new services.
The official added that the highest number of applications received at the bank were for marriage loans. "Marriage loans accounted for 48 percent of the applications received," he said.
The new regulations will be implemented on April 15 and seek to protect the interests of people in the lower-income bracket, while maintaining objectivity with applicants from various financial backgrounds, the official added.
The Saudi Credit and Savings Bank plans to offer its services to a larger number of individuals with low incomes by adopting customer-friendly regulations, a bank official recently asserted.
"Our new regulations will enable the credit bank to issue loans to 25,000 applicants every month for a total value of SR1.5 billion," Ibrahim Al-Honaishel, a bank official said in a statement to a local business daily.
According to the bank's amended statutes, which were endorsed by the bank's board of directors on Monday, the salary ceiling for social loan eligibility will be raised to SR10,000 and the credit limit for a loan will be increased to SR60,000, a local daily reported Tuesday.
The amendments, which will take effect mid-April, have also done away with any age stipulation for family loans. The amendments link the number of a loan applicant's dependents to his income, which is set as SR2,000 for each family member.
The period of eligibility for the bank's marriage loan is fixed at 12 months from the date of the applicant's marriage contract, while the period between the two loans has been reduced from three to one year.
"Currently there is no waiting list for applicants to the social loan as a decision is made within five days upon receiving the application," Al-Honaishel said, adding that previous applicants can renew their applications to benefit from the new services.
The official added that the highest number of applications received at the bank were for marriage loans. "Marriage loans accounted for 48 percent of the applications received," he said.
The new regulations will be implemented on April 15 and seek to protect the interests of people in the lower-income bracket, while maintaining objectivity with applicants from various financial backgrounds, the official added.
© Arab News 2014
