Subsidized loan terms and papers
Subsidized Loan Conditions Many people ask for subsidized discs from the Real Estate Development Fund. These loans are also offered to low- and middle-income people. In this article, we will learn about the terms and features of the subsidized loan, through the Egypt Brief website.
Would you like to learn about the terms of the subsidized real estate loan and the papers required to apply for the loan? Read here: Subsidized real estate loan conditions, Al Ahli Bank, Al Rajhi Bank, Al Balad Bank, in addition to the documents required to apply for a subsidized real estate loan. Loan
What is a subsidized loan?
- Subsidized loans are a group of different housing financing programs, and these programs are linked to the Real Estate Development Fund.
- This financing is generated by Saudi nationals who are listed in the Special Fund for Housing Development and Support provided by the government.
- Those wishing to obtain this support should contact the Saudi Investment Bank to purchase the right property for them.
Subsidized loan terms
- There are many different conditions for subsidized loans established by the Saudi Bank with the Real Estate Development Fund, which all those wishing to obtain this loan must see.
- First, it is necessary that the age of the person who wants to obtain this loan is between 20 years and 70 years.
- Second: This person must be on the housing support lists, and he must also be an employee in one of the governmental or semi-governmental sectors.
- This loan can also be provided by people who hold military jobs or in some private sectors, but on condition that these private companies have a regular relationship with banks.
There are some restrictions set by the Saudi Bank, which are as follows:
For information about my experience with the loan and the experiences of my friends, click here: My experience with a subsidized loan and the experiences of some friends that may be useful to you
Important conditions to ensure receipt of the subsidized loan
- The period of work in the private sector should not be less than three months, and this condition is one of the most important conditions for the subsidized loan.
- The working period in government sectors will not be reduced by one month.
- One of the most important conditions of the subsidized loan is that the loan withdrawal applicant opens an account from his salary in the Saudi Investment Bank, in order to transfer his salary to the bank account every month.
- The minimum area within this system is only 80 square meters, and it is forbidden to use less than that.
- The terms of the subsidized loan stipulate that the income of the applicant for the subsidized loan should not be less than 12,000 Saudi riyals.
Advantages and characteristics of the subsidized loan
Subsidized loans have many different features, but among the most important of these features and benefits are the following:
- The Takaful insurance policy is provided without any commission in the event of the death of the person or in cases of total disability, in the event that the amount specified for the insurance does not exceed 2,500,000 Saudi riyals.
- Also, one of the most important features is the presence of a guarantee on the amount of profit in the Development Fund, all this until the financing reaches 500 thousand Saudi riyals, and this feature is one of the conditions of the Development Fund. .
- The payment that a person makes to obtain the first apartment does not exceed 10%, and the payment that he makes to obtain the second apartment does not exceed 30%, and the more apartments, the higher the percentage.
- Among the benefits is also the issuance of a completely free insurance policy without any commission against all fires and disasters such as hurricanes and earthquakes and the resulting damage and destruction.
- The financing period is 25 years as a maximum and 5 years as a minimum.
- The range of total deductions from the salary should not exceed 65% of the total salary of the individual.
You can review the conditions of real estate financing subsidized by Al Rajhi Bank and the steps to obtain it in this article: Terms of real estate financing subsidized by Al Rajhi Bank and steps to obtain real estate financing
Documents required to obtain a subsidized mortgage
- First, you must fill out the financing form and you must also bring the cover letter that comes from your place of work.
- The rank of the applicant must also be mentioned in the accompanying letter if the applicant works in the army.
- Your ID must be valid and you must bring a copy of it in your application file.
- The value of the last salary obtained by the applicant for the subsidized loan must be confirmed, along with the need to bring a stamped voucher from the work site with this salary, to confirm the salary.
The loan subsidized by the National Bank
- The National Bank can finance any person with any amount he desires, up to a maximum of half a million riyals, and this number is determined and agreed upon by the Real Estate Development Fund.
- The National Bank can also grant a citizen financing up to a maximum of four million Saudi riyals, but this percentage is specific to the conditions of the National Bank only.
- In order for a person to receive the amount specified by Bank Leumi, only one condition must be met, which is to obtain the full approval of the Real Estate Development Fund.
You can also learn about the terms of a mortgage loan and how to get it for people with average incomes in this topic: Mortgage loan conditions and how it can be accepted for those with moderate incomes
How to obtain a loan with the support of the National Bank
- Initially, those wishing to obtain a loan must obtain permission from the Real Estate Development Fund, and then contact the nearest Bank Leumi branch.
- The next step is to examine the property that the person wants to buy, after which the bank management is informed of the value of the property that the customer wants to purchase and purchase.
- The next and final step is for the customer to deposit money into his bank account and then buy and own the property.
How does the mortgage program work?
- The program provides special support to the person or customer requesting the loan, after obtaining real estate financing from one of the financing banks.
- The value of the support granted to an individual is able to cover financing profits at rates ranging from 35%, and this percentage is the minimum until the maximum reaches 100%.
- These percentages are determined according to the support matrix, and then the specified amount is transferred to the customer, but after paying the monthly payment first.
Subsidized mortgage program options are available at Banque Saudi Fransi
- You can get a loan or a land product, and you can also get a ready-made housing unit.
- Mortgage financing and self-build.
- You can also get a product that is still under construction.
Read also for information about the terms of the mortgage loan from Al Rajhi Bank and how to activate the current account from here: the terms of the mortgage loan from Al Rajhi Bank and how to activate the debit account
We hope that we have helped you in this article and explained to you what a subsidized loan is, the terms of a subsidized loan, and all the features and benefits of this loan as well.
Source: موجز مصر by www.mogazmasr.com.
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