Self-construction Finance:

Is a product that aims to meet the requirements of customers who own their own property (land / incomplete property) and want to build a house as desired. The finance covers the customer’s partial or complete needs for construction costs, and is obtained in the form of payments according to the annex of the schedule of completion stages agreed upon with the customer at the time of contracting, and the payment is in monthly installments until the finance is fully paid.

Product Concept:

The product is based on the Islamic tawarruq form whereby SAB owns metal purchased from the global market and sells them to customers at an agreed upon fixed profit rate. After a short period of purchasing metal from SAB, the customer has the right to issue an official power of attorney for SAB to sell metal at the prevailing prices and then obtain the amount of finance. And the land is mortgaged as a security payment for the finance.


Early Payment 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
  • Identification card
  • Mortgage application form
  • Medical questionnaire
  • Full Medical questionnaire if the amount above 3,000,000.

Product specifications and features

  • Approved by Sharia Board as Tawarruq form
  • Up to 90% of the property value can be financed.
  • Financing amount up to SAR 5 Million and no less SAR150,000.
  • Administrative fees 1% of the value of the financing or SAR5000, whichever is lower, excluding VAT
  • Minimum Salary starting from SAR 3500
  • 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 30 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.

Steps to get the product

  • Apply for home finance
  • Valuation of customer's financial capacity
  • Initial approval for financing
  • Provide the required documents
  • Real estate evaluation and study of the application
  • Final approval of the financing request