The Real Estate Development Fund has started the second partnership program with local financial institutions by launching the work phase of the accelerated loan in all cities of the Kingdom in cooperation with Al Rajhi Bank, for citizens applying to the Real Estate Fund who are on the waiting lists, to obtain the loan for the purpose of buying ready-made housing from apartments or villas without specifying the size of the housing unit.

The General Supervisor of the Real Estate Development Fund Ayham bin Mohammed Al Yousef told

The General Supervisor of the Real Estate Development Fund, Ayham bin Mohammed Al-Yousef, told "Riyadh" that the accelerated financing product is optional and not mandatory, pointing out that direct lending from the Fund continues within certain limits, and said that there are other products that will be announced to suit all segments of the waiting lists in the Real Estate Fund, stressing that the goal is to reduce the number of waiting lists as a prelude to ending them.

The General Supervisor of the Real Estate Development Fund, Ayham bin Mohammed Al-Yousef.

Al-Yousef pointed out that the interest rate on the loan is 1%, which will be fixed even if the interest rate changes in financing facilities, while the value of the loan can be less than 500 thousand depending on the different cities and the value of the meter for the residential unit, which is subject to a specific evaluation mechanism that takes into account the different prices in different cities and the type of residential unit. This step comes to reduce the number of people waiting on the waiting lists in the Real Estate Fund to be the most important and only alternative to the suspension of new real estate loans since October last year, which is consistent with the clear decline in the size of direct government support for real estate loans, and the use of partnership solutions with financing facilities and the real estate development sector to offer financing products at very low interest rates, or affordable housing.

Despite the importance of the accelerated loan that will fulfill the desires of more than 40% from the waiting lists of applicants to the Real Estate Fund, it has been delayed a lot, due to delays in procedural aspects by the Real Estate Fund, or by the Monetary Agency. Negotiations between the Real Estate Fund and banks also took a long time due to the low interest rate for the bank, which was compensated by other solutions such as private deposits.

The maximum limit of the accelerated loan is 500 thousand riyals, while the minimum limit - determined by the Real Estate Fund policy determined by the area of the apartment or villa - as for the time cities for repayment of the loan, the minimum term of the accelerated loan is 5 years, and the maximum term of the accelerated loan is 15 years, after which the interest (1% of the loan value x the number of years of repayment) is paid in five years after the end of the loan repayment to Al Rajhi Bank.

After the end of the loan repayment to Al Rajhi Bank.

The accelerated loan is applied to residential units without specifying the size of the residential unit, as the Real Estate Fund's policy is applied in this regard and after the bank's approval.

Al Rajhi Bank is the first Saudi institution to offer this product, which is expected to witness a large turnout of citizens eligible for mortgage loans, especially since Al Rajhi Bank has the largest network of branches in all cities of the Kingdom, and it is expected that the experience will be transferred to applicants for the housing support program in the Ministry of Housing who requested the loan product from among the Ministry's products (land and loan, housing, loan and land).

Al Rajhi Bank is the first Saudi institution to offer this product; which is expected to witness a large number of citizens eligible for mortgage loans, especially since Al Rajhi Bank has the largest network of branches in all cities of the Kingdom.