Real Estate Financing (Eirad) for Retail Customers

Real Estate Financing (Eirad) for Retail Customers

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EIRAD – Retail Mortgage Financing

Get your real estate financing by pledging your property or purchase a new property. Eirad product provides the opportunity to customers to buy a property that generate income
or obtain a financing by pledging the property,

which allows the customer to repay the finance from the property income.

In addition, Eirad product meets the needs and desires of all individual customers, whether

buying or mortgaging investment real estate complexes or purchasing or mortgaging a single investment real estate unit or a group of real estate units in different areas.

Eirad for financing the investment properties:

  • Equity Release: For customers who own properties that generate income and wish to obtain a financing by pledging the property.
  • Purchase: For customers who wish to obtain a financing to buy many properties that generate income.
  • Buyout: For customers who have existing mortgage loan with other banks, provided that the property is rented.
  1. Financing amount up to SAR 20 Million.
  2. Finance amount starts from 750,000 SAR.
  3. Affluent Customers/Diamond and Private Banking Customers only.

Eirad for financing the investment unit:

  • Equity Release: For customers who own one property or multiple properties that generate income and wish to obtain a financing by pledging the property.
  • Purchase: For customers who wish to obtain a financing to buy one property or multiple properties that generate income.
  • Buyout: For customers who have existing mortgage loan with other banks, provided that the unit is rented.
      1. Financing amount up to SAR 16 Million.
      2. Finance amount starts from 750,000 SAR.
      3. Dedicated to Saudi segment customers.

Features:

  1. Shariah compliant financing.
  2. Financing period up to 240 months.
  3. Financing up to the age of 70.
  4. Fixed financing rate throughout the financing period.
  5. Availability to finance all types of properties including investment lands.
  6. Availability to buyout the existing Eirad loan from other banks.
  7. Financing up to 70% of the property value.
  8. Equal repayment Installments on quarterly, semi-annually & annually basis based on rental frequency.
  9. Insurance covers the property for the loan tenor.

Terms and Required Documents:

  1. Minimum age of 25.
  2. Saudi nationality only.
  3. Property age not exceed 30 years at the maturity.
  4. Customer ID.
  5. Title deed.
  6. Property sketch.
  7. Construction license.
  8. Commercial Activity License.
  9. Commercial of Register.
  10. Rental contracts from EJAR platform.
  11. Price quotation for the property.

FAQs

Is non-executive rental contract accepted?

Only executive rental contracts are accepted.

Is rental contract from client or client relative accepted?

No

How rentals are verified in the customer’s account?

By statement of account or transfer receipt showing the name of the tenant.

When commercial of register and commercial activity license are required?

If the tenant is a commercial store, a commercial register and activity license (issued by the municipality) is required, and if the property is operated as hotel apartments, an activity license (issued by the Ministry of Tourism) is required.

The main difference between EIRAD & EIRAD Units?

In number of units, target segments, finance amount.

The difference in the required documents between EIRAD & EIRAD Units?

The documents are the same for both products in addition for salary certificate is required for EIRAD Unit.

When is the survey report required?

If the property does not have a part number or diagram.

How is the installment time determined?

Based on the rental cycle and contracts. 

A client who owns a commercial residential building, can he obtain financing for a unit within the property and not for the entire property?

Yes, he can.

Is it possible to benefit from REDF support on EIRAD unit product?

No, you cannot benefit from REDF support in EIRAD unit product.

Eirad Plus Calculator

Enter Property Value SAR

Actual Rental Proceeds SAR

Enter Loan Amount required SAR

Your Final Finance Amount

Total Profit

Your Installment

Total Amount Payable

  1. Information above is provided for illustrative purposes & should not be considered as an offer by Bank.
  2. Customers must apply for a lease facility along with required documents in order for bank to underwrite & take a decision.
  3. Please read Terms & Conditions before applying for Auto Lease.

0.06

0.09

0.7

350000

Minimum Property Value should be 350000

Rental Proceedings cannot Exceed Property Value

Requested Loan amount cannot Exceed Property Value

Tutorial Videos

Tutorial Videos