Ministry of Housing

Land and Finance

Land and Finance is an initiative by REDF / MOH for beneficiaries who would like to obtain a self-construction financing to build a house on a land granted by MOH.

Features:

  • Maximum Finance tenor 25 years
  • All REDF / MOH beneficiaries
  • Fixed profit margin through entire tenor
  • Sharia compliant
  • APR starting from 4.08%

Requirements:

  • The applicant to be an REDF / MOH beneficiary
  • The applicant must have an account with the bank
  • The applicant must emlyoyed by one of the approved employers by the bank
  • Minimum monthly salary of SAR3,500
  • Salary must be transferred to the bank

How to Apply:

  • Please Visit your nearest Al Rajhi Bank branch
  • Call us at 8001241222
  • Apply online

Terms and Conditions of Al Rajhi bank apply


Asset Type

Finance Amount

Maturity In Years

APR

Monthly Repayment Amount

Residual Value

Apartment

350,000

15

6.63

3,038

0

Villa

450,000

15

6.63

3,906

0

Villa

750,000

20

6.77

5,625

0



The Annual Percentage Rate (APR):

It is the discount rate at which the present value of all payments and installments that are due from the Borrower, representing the Total Amount Payable by the Borrower, equals the present value of all payments of the Amount of Financing available to the Borrower on the date on which the Financing amount or the first payment thereof is available to the Borrower. This is defined as per Article 81 of Implementing Regulations of the Finance Companies Control Law. In simple terms, APR is computed by adding all the upfront fees, charges and commissions charged from the customers and calculated on an annualized basis. The APR must be calculated and expressed in percentage points with a minimum of two basis points, rounding half basis points to the nearest full basis points.

Illustration:

Property Value

Loan to Value Ratio

Fixed or Variable Rate **

APR*

Maturity in Years

Payment Type ***

Monthly Repayment Amount

Early Payment Charges

1000000

90%

Fixed

8.72%

30 years

Principle and Interest / profit

6,812.50

Profit of future 3 installments



*APR may differ depending on the amount and the maturity period different from above and subject to credit scoring of each customer.

Loan/Finance Amount :

The amount of, on balance sheet loan granted to the customer.

Maturity In Years:

The contractual maturity of the on-balance sheet Loans/ Financing Products given to the customer. This is the final payment date of a Loan/Finance products at which point the principal (and all remaining interest/profit) is due to be paid.

Monthly Payment Amount:

Installment amount the customer is obliged to pay to the bank or finance company each month until the debt is fully repaid.

Property Market Value

Price negotiated between a willing buyer and a willing seller in an arm’s length transaction after fulfilling valuation criteria set by the banks . The value may not be the current listing price or the amount of the most recent offer on the property.

Loan to Value Ratio

Ratio of a loan provided by the Bank or Finance Company to the value of property purchased and determined as property market value .

Payment type

Interest only payment or , both principle and interest payment or else.

Early Payment Charge

A fee customer will be required to pay to a lender if the customer pays off a mortgage early and before the scheduled maturity term of the credit facility , also sometimes referred to as a Redemption Penalty.