Al Rajhi Bank is one of the oldest and largest banks in the world, and it is one of the most important banks that are keen to follow the teachings of Islamic Sharia in all financial transactions and financing, and this is one of the most important information about Al Rajhi Bank.
The bank offers several financing programs, such as car finance, personal finance, and property finance. In this article, we will talk in detail about everything related to obtaining Al Rajhi property financing.
Al Rajhi Home Finance Programme:
Al Rajhi Bank helps citizens to own their property in multiple programs with a financing duration of up to 25 years, and the financing is Sharia-compliant. To obtain a property finance loan from Al Rajhi Bank, applicants must be Saudi nationals between the ages of 21 and 60 years old.
Work also plays a role, as the bank favours employees in the government and private sectors whose salaries can be easily transferred to Al Rajhi Bank to facilitate the repayment process. Minimum salary requirements vary depending on the type of job.
Government employees need a minimum monthly salary of SAR 5,000 with at least 6 months of service, while private sector employees need a minimum monthly salary of SAR 7,500 and at least one year of experience. Finally, applicants must have at least 20 years of service remaining before retirement.
Can commercial businesses obtain a finance loan?
Yes, the bank offers the Real Estate Income product, which aims to provide financing to customers who own investment real estate that generates income or wish to purchase new investment real estate. This product provides financing of up to SAR 25 million with a flexible repayment period ranging from 1 to 15 years. This helps you generate cash flow by financing the future rental income of the investment real estate.
The repayment of installments is in line with the rental income stream, where you can choose monthly, quarterly, semi-annual, or annual repayments. Competitive profit margins start from 6.5% fixed per annum.
To apply, you will need to submit a customer application form, the landlord/owner’s National ID, commercial register (if applicable), and proof of a good credit history. In addition, all leases must be registered in the National Housing Company’s Ejar network. You can start the application process by calling the hotline, submitting an online form, or visiting your nearest bank branch.
Advantages of Al Rajhi Property Finance:
- Financing up to 85% of the property value: Al Rajhi Bank gives you access to flexible financing of up to 85% of the property value, making it easier for you to buy or build without having to provide large amounts of money upfront.
- Flexible repayment durations: Al Rajhi Bank allows you to choose the repayment duration that suits your needs and budget, ranging from 5 years up to 30 years.
- Competitive profit rates: Al Rajhi Property Finance has competitive profit rates that are comparable to the best offers in the market, ensuring you save money in the long run.
- Various facilitations: Al Rajhi Bank offers a range of facilitations that make it easier for you to obtain financing, such as:
- Salary Transfer Facility: You can transfer your salary directly to your Al Rajhi Bank account to facilitate your monthly installment payments.
- Insurance facility: The bank provides you with comprehensive insurance services to protect your property from any unforeseen risks.
- Facilitate the process: Al Rajhi Bank’s dedicated customer service team will help you complete all the necessary procedures to obtain financing quickly and easily.
The role of real estate valuation in obtaining a finance loan.
A real estate valuation is an important first step. This transparent and reliable valuation ensures that the market value of the property you want to buy or build is determined. Based on this value, Al Rajhi Bank determines a suitable financing amount for you, avoiding an additional financial burden in the future.
A real estate valuation not only determines the value but also contributes to several other aspects:
- Risk reduction:
A real estate valuation helps identify any issues or challenges that may affect the value of the property in the long term. This provides you and the bank with peace of mind when making financing decisions.
- Transaction integrity:
An impartial real estate valuation ensures a fair financing process for everyone. It determines the seller’s true value, and gives you, the buyer, financing that is appropriate for the size of the investment.
- Decision Support:
A detailed valuation report gives you valuable information about the property, helping you make an informed investment decision about buying or building your future property.
To ensure the accuracy of the real estate valuation, it is advisable to collaborate with a real estate valuer accredited by the Saudi Authority for Accredited Valuers, and in this regard, we advise you to collaborate with Aain, a trusted partner in real estate valuation and accredited by the Saudi Authority for Accredited Valuers. With an accurate and comprehensive real estate valuation, you can move forward confidently on your journey to obtain a finance loan from Al Rajhi Bank and realize the dream of owning your new home.
Conclusion
A real estate valuation is an essential step in ensuring a smooth and convenient financing experience with Al Rajhi Bank after fulfilling the conditions of your loan. It ensures that you receive accurate financing that is commensurate with the value of the real estate, minimizes risk for both the bank and the customer, and establishes the principles of fairness and transparency in the financing process.