Features of the equity financing program from Saudi Bank Albilad

yousef27 April 2022Last Update : 2 years ago
Features of the equity financing program from Saudi Bank Albilad

The Economy website reviews the advantages of the equity financing program from AlbiladSaudi Bank.

Bank Albilad offers equity financing that is compliant with Shariah committee regulations, which will help you achieve your goals, as we sell you a commodity after you own it and put it at your disposal.

Advantages of equity financing from Bank Albilad

Complies with the regulations of the Shariah Committee of Bank Albilad
The possibility of purchasing shares of any company within the list of shares approved by the Shariah Committee and specified by the Bank
Quick completion of all client financing application procedures.
Flexible repayment period of up to 60 months.
The possibility of early repayment at any time based on the controls of the Saudi Central Bank.
The ability to pay in installments commensurate with the customer’s monthly income.
Possibility to postpone a premium every year.
The possibility of obtaining a payment deferment at the beginning of the financing installments.
A sponsor is not required to obtain financing.
Financing up to 2,000,000 SAR.
Possibility to obtain additional financing.
Possibility of financing retired clients.
Financing employees of local banks without salary transfer *.
Available to Saudis and residents.

the conditions

The age of the customer should not be less than 18 years.
The customer must have a current account with Bank Albilad
The customer must be working in one of the establishments approved by the bank in the public or private sectors
The customer’s monthly net income shall not be less than 3,000 Saudi riyals for Saudi customers and 3,500 for non-Saudi customers in government sectors or based on the classification of the employer.

Required Documents

To ensure that your application is completed quickly and smoothly, please make sure to provide the following documents when submitting your application:
Valid customer identification document.
Fill out an acknowledgment and disclosure of the client’s personal obligations.
A copy of the work card for employees of the military sectors.
Fill out the entire “Installment Purchase Request” form.
A definition from the employer, including the monthly salary, the job title, and the start date of joining the work.
Salary transfer letter.

Equity Financing Mechanism

The bank buys the local shares that the customer has chosen.
The selected shares are placed in an investment portfolio owned by the bank.
The bank sells the shares of this portfolio to the customer at their original price plus a profit margin.
The purchased shares are transferred to an investment portfolio in the name of the client.
The customer later pays the value of these shares to the bank in the form of monthly installments according to the terms of the contract concluded between him and the bank.

Equity financing program

Funding Principal Value 100,000 riyals
total financing profit 10,000 riyals
Annual Percentage Rate APR (4.31%)
1% (up to a maximum of 5,000 riyals) of the value of the original financing, administrative fees
Financing term 60 months
the cost of the sale contract 110,000 riyals
monthly installment 1,833.33 riyals

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