The Real Estate Development Fund announced that it will grant beneficiaries of the “Self-Build” program—whose land prices are less than 500,000 riyals—half a million riyals, to be paid to them in installments through banks.
The Real Estate Development Fund clarified that the first phase of the self-build program is limited to beneficiaries whose land values are 500,000 riyals or more, who will receive the full loan amount of “half a million” riyals in cash, given the value of their properties, while all interested citizens whose land values are less than half a million riyals will be eligible for the full loan amount, but through installments.
The Fund noted that for citizens who are unable to receive the full benefit of the “Subsidized Financing” program due to existing personal loans, the Fund has established a number of banking privileges to help them overcome this issue through the so-called (2-in-1).
The Fund added, “Most beneficiaries have personal loans, which required the Fund to collaborate with banks to find a mechanism to help resolve this issue. Under this mechanism, banks grant beneficiaries a mortgage loan from the subsidized financing program in conjunction with their personal loan, provided that the banks do not collect the full amount of the mortgage installment until after three years, during which time the banks collect only the personal loan installment“.
The Fund confirmed that this measure contributed to a 35 percent increase in loan amounts for citizens, noting that there is a financial framework in place to provide the amounts citizens desire.
He noted that the Fund has taken another step to enable citizens to benefit from “subsidized financing” programs, namely, having banks include the value of the subsidy granted by the Fund to the beneficiary in the monthly “salary,” which has contributed to increasing the amount of subsidized financing available to citizens by approximately 60%.
