Self-construction product subsidized by REDF

Self-construction product subsidized by REDF: 

For land owner who aim to build their homes according to their need by home finance through supported profit installments for an amount of SAR500,000 compatibles with Shariah provided for REDF and Ministry of Housing.

It’s a product based on the concept of Tawarruq, where finance is provided to fulfill customer partial or full needs to construct a residence. The finance is received by payments according to progress phases schedule agreed upon with the customers at the time of contracting. And the finance is paid by monthly installments until the amount is fully paid.

Product concept:

SAB owns metal purchased and sells it to customers at an agreed upon fixed profit, the customer can produce an official power of attorney for SAB shortly after purchasing metal at the market prevailing prices then receive the amount of finance, to mortgage land as a guarantee until the amount is fully paid.


Early payments fees Monthly Installment* Payment Method Financing Period APR* Variable or fixed profit margin Max Financing Amount Property Value
Profits for the next three months   3,030.00 Principal amount plus profit margin 25 Years  6.78% Fixed  90%  500,000
*The annual percentage rate and the monthly installment may change based on the value of the financing, the financing period, and the profit margin currently approved by the bank

Rates/prices presented are examples and they may vary depending on different factors such as the customer’s credit history and worthiness.

Required Documents:

  • Salary Introduction Letter (Pay Slip Letter)
  • Salary Transfer Letter
  • ID Card
  • Home finance request form
  • Medical questionnaire
  • Full Medical questionnaire if the amount above 3,000,000

Product specifications and features:

  • Approved by Sharia Board as Tawarruq form.
  • Financing amount up to 5 Million SR and no less 150,000 SR.
  • Administrative fee 1% of the value of the financing or SAR5000, whichever is lower, excluding VAT.
  • Minimum Salary starting from 3500 SR
  • Choosing to construct land/ incomplete property
  • A waiver on payment of finance amount remained in case of death or permanent disability –god forbid-.
  • Fixed installments and generally accepted profits during the financing period
  • Finance period up to 25 years
  • Step up payments as per customer obligations. Allow customer to obtain 2in 1 products.
  • Step down payments on retirement- the customer will have a reduced installment after retirement in accordance with the pension
  • Combo gives the customer ability to obtain personal and home finance in case the client approaches retirement age.

Product obtaining steps:

  • Obtain REDF & Ministry of Housing approval for housing support
  • Home finance request application
  • Valuation of customer's financial capacity
  • Financing initial approval
  • Property and schemes assessment and examination of the submission
  • Final approval of the financing request