balance-loan-transfer

Loan Buy-out (Balance Transfer)

Loan Buy-out (Balance Transfer)

This is an Islamic financing product approved by the Bank’s Shariah Committee to finance salaried individual customers who have existing liabilities with other banks. The customer buys a certain quantity of goods owned by the Bank at an agreed upon profit and repayment plan. The customer requests the merchant through the bank to sell the goods and credit the proceeds to his / her account with SAIB. The customer uses a portion from the proceeds to settle his / her outstanding liabilities with the other bank, then he can withdraw the remaining finance amount after obtaining a release letter from previous bank and submitting a salary assignment letter to SAIB.

The features you need to know:

Compatible with the provisions of Islamic Shariah

Approved by the Bank's Shariah Committee.

Refinance

Customer can refinance after paying the required financing amount .

Additional Finance

Eligibility for an additional finance after having an increase in monthly salary.

Debt Relief

Debt relief in case of death or permanent disability (God forbids).

Sponsor/Guarantor

No Sponsor/ Guarantor required.*

Financing Amount Disbursement

Get the finance on the same day**
**In case all applicant documents are complete
*Terms and conditions apply.

This is an Islamic financing product approved by the Bank’s Shariah Committee to finance salaried individual customers who have existing liabilities with other banks. The customer buys a certain quantity of goods owned by the Bank at an agreed upon profit and repayment plan. The customer requests the merchant through the bank to sell the goods and credit the proceeds to his / her account with SAIB. The customer uses a portion from the proceeds to settle his / her outstanding liabilities with the other bank, then he can withdraw the remaining finance amount after obtaining a release letter from previous bank and submitting a salary assignment letter to SAIB.

Payment period

payment-period

Finance amount

finance-amount

Please make sure you have the following requirements:

ELIGIBILITY CRITERIA

To apply for SAIB Balance transfer (Loan buy-out) you must meet the following eligibility criteria:

  • Saudi Nationals who are currently employed
  • Service period:
    For Government Sector: 1 months with current employer
    For Private Sector: 3 months with current employer
  • Minimum age 18 years
  • Maximum age of 60 for males and females at time of finance maturity. For armed forces personnel, maximum age would depend on rank / position held
  • Retirees.
  • Minimum age: 38 years for retirees
  • Maximum age of 65 for retirees at maturity
  • Working for an employer included in the Bank’s approved list
  • Payment of the debt includes loans / consumer finance only and does not include the payment of credit cards.

REQUIRED DOCUMENTS

  • Complete SAIB application form.
  • Introduction letter from employer, which would typically include salary, allowance details, and date of joining.
  • Employer salary transfer commitment letter (3 parties declaration form).
  • No objection and debit transfer letter from the existing lending bank.
  • Account statement of the last 3 months. (Showing the last 3 salaries which are verified from the previous bank).
  • Copy of a valid customer identity (to be taken after sighting the original).
  • Copy of the “Work ID Card” specifying rank / position (to be taken post sighting of the original) - (If available).
  • Customer authorization form to deduct installments due if delay in effecting salary transfer.

information

For more information and details, please call us at:

800-124-8000

An example of information that will be obtained when applying for a product

Finance amount (SAR) 100,000
Tenor (Years) 5
APR % Starting from 4.71
Installment amount (SAR) 1,849.79

*The Annual Percentage Rate (APR) may differ based on the amount and maturity period.

The calculator provides estimates only and shall not be considered an approval for the financing application.

Result
=
00,000
Your Age
 
18 Years
Your Salary
SAR
Employer Sector
Finance Tenor
Months
 
PLEASE NOTE THAT THESE ARE SIMULATED AMOUNTS REPRESENTING APPROXIMATE NUMBERS ONLY, WITHOUT TAKING INTO ACCOUNT YOUR MONTHLY OBLIGATIONS AND CREDIT BUREAU RESULTS.
For exact figures, please contact Flexx Call Phone Banking at 800-124-8000

or visit the nearest SAIB Branch. SAIB Branch.
All personal financing are subject to credit approval.
FAQs

Is SAIB’s Balance Transfer Product consistent with Shariah law/?

Yes, this is a Shariah compliant financing product approved by SAIB’s Shariah Committee.

Who is eligible for Balance Transfer?

  • Saudi Nationals only.
  • Customer must have a salary account with SAIB and outstanding consumer finance in other bank.
  • Customer must be either a current employee or a retiree from private or government sector that is listed in SAIB’s approved employers list.
  • The length of service must be at least of 3 months with current employer.
  • The minimum applicant age must be 18 years old for employed customers and 38 years for the retirees.
  • Maximum age of 60 years for males and females and 65 years old for retirees at the time of finance maturity.
  • Debt Burden Ratio not to exceed 33% for employed customers & 25% for the retirees

How long does it take to get the finance?

SAIB guarantees disbursement of the finance amount in the same day (subject to complete documentation).

When can I benefit from the remaining amount after settling my previous loan?

SAIB must receive the first salary, before releasing the hold on the remaining amount.

What is the minimum financing amount?

Minimum amount is SAR 50,000.

What is the maximum financing amount?

Maximum financing amount is SAR 1,000,000.

What profit rate do I pay?

Our profit rate is highly competitive and is fixed for the entire tenor of the Murabaha finance. For our current profit rate, or to enquire about special promotions, please call our Flexx Call contact center at 800 124 8000.

Would I get any special benefits?

You automatically qualify for a host of free benefits:

  • Sharia compliant Salary Account with no minimum balance requirement.
  • Mada Debit Card
  • Debt relief case of death - God forbids - or permanent disability.
  • WOOW reward points

Any collateral required?

No collateral or guarantor required to avail to this finance.
However, a guarantor for the customer must be available with the same conditions of the customer, in order to be exempted from providing Three-Party Salary Assignment Letter of undertaking (Available only for certain employers).

What is the difference between the outstanding loan amount with the pervious bank and finance amount from SAIB ?

The requested finance amount must cover the outstanding of the previous bank, along with the administration and Wakala fee.

What are the documents required to apply for Balance Transfer?

  • Employer’s salary transfer commitment letter ( Three-Party Salary Assignment Letter of undertaking ), signed by the previous employer on the commitment to transfer salary following the release letter (Some sectors / companies are excluded).
  • Indebtedness letter (letter of no objection) from the previous bank that does not include any existing credit cards at the same bank balance.
  • Account statement of last 3 months. (Showing last 3 salaries which are verified from the previous bank).
  • Copy of the “Work ID Card” specifying rank / position (to be taken post sighting of the original) – this is for military personnel
  • Customer authorization form to deduct installments due if delay in effecting salary transfer
  • Wakala* signature (mandatory, the customer may request to examine the goods but cannot take them).

In case the employer is part of the employers (which are not required to provide salary transfer commitment letter, Three-Party Salary Assignment Letter of undertaking , and settle for only the guarantor) what are the required documents for the guarantor?

  • A valid Identity Card.
  • Guarantee letter form for the continuous joint liability or responsibility which is Irrevocable.
  • Open a salary account with SAIB
  • Salary Introduction letter, which includes basic and total salary and allowance details, making sure that the client is working in the same city where the application has been submitted.
  • Account statement of the last 3 months. (Showing last 3 salaries which are verified from the previous bank).

How do I apply?

Please click here or contact our Flexx Call contact center at 800 124 8000 or visit any of our branches.