Self-construction product subsidized by REDF:
For land owner who aim to build their homes according to their need by home finance through supported profit installments for an amount of SAR500,000 compatibles with Shariah provided for REDF and Ministry of Housing.
It’s a product based on the concept of Tawarruq, where finance is provided to fulfill customer partial or full needs to construct a residence. The finance is received by payments according to progress phases schedule agreed upon with the customers at the time of contracting. And the finance is paid by monthly installments until the amount is fully paid.
SABB owns metal purchased and sells it to customers at an agreed upon fixed profit, the customer can produce an official power of attorney for SABB shortly after purchasing metal at the market prevailing prices then receive the amount of finance, to mortgage land as a guarantee until the amount is fully paid.
| Tawrruq |
|Early payments fees ||Monthly Installment* ||Payment Method ||Financing Period ||APR* ||Variable or fixed profit margin ||Max Financing Amount ||Property Value |
|Profits for the next three months || 3,030.00 ||Principal amount plus profit margin || 25 Years || 6.78% ||Fixed || 90% || 500,000 |
|*The annual percentage rate and the monthly installment may change based on the value of the financing, the financing period, and the profit margin currently approved by the bank |
Rates/prices presented are examples and they may vary depending on different factors such as the customer’s credit history and worthiness.