The Real Estate Fund confirmed that the amounts allocated to the subsidized financing program will be deposited into the beneficiary’s account immediately after each installment is paid, in accordance with the installment plan, for a period of up to 300 months, or 25 years, denying media reports that the financing goes directly to the banks.

In a press release, the Fund stated, “Out of a desire to clarify certain important details regarding the mechanisms for providing support to citizens, the Real Estate Development Fund denies the validity of recent claims made on social media regarding the relationship the “Subsidized Financing Program” with financing companies and banks, which falsely claimed that the subsidy amounts go to banks or financing companies “in a single lump sum,” clarifying that the support amounts are deposited into the beneficiary citizen’s account immediately after they pay their installment, in accordance with the installment system, for a period of up to 300 months, equivalent to 25 years.”

The Fund explained that distributing the subsidy to citizens in this manner aims to reach a larger segment of beneficiaries, confirming that the subsidy percentage for beneficiaries with a monthly income of 14,000 riyals or less amounts to 100% of the financing profits, as the beneficiary is only responsible for repaying the principal of the loan, noting that 85% of those on the waiting list have incomes below 14,000 riyals, Furthermore, the remaining applicants to the fund whose monthly income exceeds 14,000 riyals receive partial support based on their monthly income and family size, and support for some may reach 100,000 riyals based on income and family size.

The Fund confirmed that the subsidized housing finance program plays a key role in addressing the biggest obstacle faced by applicants: the long waiting period; as their waiting period will be reduced and the pace of service accelerated so that they can obtain subsidized financing within just 5 years.