SAUDI CREDIT BANK ( S C B )

Introduction:

The Saudi Credit Bank's articles of association were approved as per Royal Decree No.(M/44), dated 21-9-1391H. According to the provisions of its articles of association, SCB was established as an independent legal and financial entity, eligible for acquisition, disposal and litigation. SCB's capital total was SR 959 million.

SCB's Purposes:

The SCB was established to extend interest free loans to Saudi citizens with limited financial resources to help them overcome their financial difficulties. Its loans are extended in return for a sufficient mortgage or acceptable surety from a creditworthy individual or firm to insure the repayment of the loan.

Lending terms:

The SCB extends loans, which the value of each may not exceed, SR 20,000, according to the following terms:

1. A loan applicant must be in actual need of the loan.
2. His annual income should not exceed SR 36,000.
3. He should not have any outstanding loans from the SCB, regardless of the type and amount.
4. The guarantee should conform with the SCB's bylaws and its relevant instructions.

The SCB provides loans for marriage, home repair, vocational pursuits, as well as other social endeavors, including family loans. Following are the general terms for each type of loan:

Marriage Loans:

The SCB provides loans to citizens seeking matrimony on the following conditions:

1. The loan applicant is getting married for the first time to a Saudi female citizen
2. The loan applicant, whose first and only wife is deceased, is seeking to marry a Saudi female citizen
3. The loan applicant is entering into a second marriage, which meets either of the following criteria:
   1. The second marriage is due to the applicant having been separated from his first wife because she is permanently forbidden for him, and the separation having been proven by a legal instrument.
   2. The second marriage is due to the applicant's divorce from his first wife prior to consummation, and the divorce having been proven by a legal document.
4. In all cases, a loan applicant must have a Saudi identification card and be at least eighteen years old.

Home Repair Loans

The SCB provides concessional loans to low income citizens, who meet the following conditions:

1. The house is privately owned (as per a legal instrument) and occupied by the loan applicant.
2. The loan applicant is at least twenty-one years old, except for under-age orphans, who may be given a loan for home repair purposes.

Family Loans

Family loans are provided on the following conditions to the father of the family, who is in actual and urgent need of the loan to meet one of his family's basic needs:

1. The loan applicant must be at least thirty-five years old.
2. The number of family members should not be less than six, as evidenced by the family's civil record.
3. The loan applicant should submit a detailed statement of the basic needs he seeks to satisfy.
4. The family must be in actual need of the loan, which should serve a socially acceptable purpose.

Vocational Loans

The purpose of the program is to encourage qualified Saudi professionals and technicians to pursue specialized, professional and technical vocations by themselves and for their own interest, or to expand and develop their own workshops by providing them with individual loans not to exceed SR. 200,000 when the following conditions are met:

1. The loan applicant must be a Saudi citizen.
2. The loan applicant should be at least twenty-one years old.
3. The loan applicant must be a graduate of a university or college or of a vocational or technical institute or center.
4. The profession sought by the loan applicant should serve a large sector of society or enhance one of the national economy's sectors.
5. The course of study or training attended by the loan applicant, and in which he obtained a certificate, must not be less than six months.
6. The loan applicant must have practiced his area of specialty for at least one year.

Saudi Credit Bank's Branches