To enable Saudi male and female citizens to renovate and complete the construction of their homes, the Social Development Bank in the Kingdom of Saudi Arabia has provided a renovation loan.
This program aims to empower Saudi citizens to renovate and complete the construction of their homes, and it is part of a suite of social financing products offered by the bank.
Interested individuals can submit their applications electronically through the bank’s website to obtain the loan. If you are wondering about all the details regarding renovation loans, follow along with this article.
Features of the renovation loan
● The financing ceiling for renovation loans is up to approximately 60,000 Saudi Riyals.
● The financing period extends up to 5 years.
● Amounts are repaid monthly.
● You can obtain the loan without paying any administrative fees.
● In the event of death or total disability, the loan is exempted.
Conditions for obtaining a renovation loan from Social Security
● To qualify for a renovation loan from Social Security, several conditions must be met, including:
● The borrower must be at least 18 and not over 70 years old.
● The monthly income of the borrower must be at most 14,500 Saudi Riyals.
● The guarantor must be at most 55 years of age.
● The borrower must possess the property deed of the home to be renovated.
● The age of the home to be renovated must be at least five years.
● At least five years must have passed since obtaining a previous loan for the same home.
● The building area of the property to be renovated must not exceed 1000 square meters.
Requirements for the renovation loan
● A copy of the beneficiary’s national ID card.
● From the commercial bank the IBAN account number.
● A certified copy of the renovation permit from the municipality is valid and in effect.
● For the beneficiary, the salary must be specified, detailed, stamped, certified by the Chamber of Commerce, and not exceeding 60 days from the date of signing.
● If the property is owned through a commercial bank, the house deed or a copy of the ownership contract from both parties must be provided.
● A certificate of duration and ordinary wages provided by the Social Insurance website provided it does not exceed 60 days from the date of issuance.
● In the case of heirs or partners, a certificate of inheritance inventory is submitted, along with copies of the heirs’ or partners’ IDs.
● For heirs or partners, a waiver and authorization form must be submitted and signed by all heirs or partners.
Steps to obtain a renovation loan
1. Firstly, access the website of the Social Development Bank.
2. Select the “Individuals” button from the main window, then click “Individual Financing”.
3. You will be presented with a list of all financing available for individuals; choose “Renovation Financing.”
4. You will find all the details related to renovation financing, including conditions and other information.
5. Select “Submit Application” to apply for the loan.
6. Start by accurately filling out the personal information and attaching the required documents. After ensuring all requirements are met, apply.
7. Your eligibility for the financing loan will be reviewed, and you will be informed of the result later.
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Amount of renovation loan
● Financing for renovating homes built from mud is valued at 18,000 Saudi Riyals.
● Financing for renovating traditional homes can reach up to 30,000 Saudi Riyals.
● Financing for renovating homes constructed with reinforced concrete has a maximum limit of 60,000 Saudi Riyals.
● For the age group between 60 – 65 years old, the maximum financing amount is 30,000 Saudi Riyals.
● The maximum financing amount for the age group between 65 – 70 years old is 18,000 Saudi
Riyals.
Conclusion
You can easily access all the real estate services you need through Faisal Bin Saedan Company, as we are considered the optimal choice in the real estate investment field.
We are always here to help you find the right property without hassle. Our advisors can also assist you in selecting the best loan that suits your needs and how to obtain it.
