Installment Trading...Doing...Responding...Doing
Al-Sayeh's advice to religion.... take what you need and avoid stocks
Hamad: A toxin that turned the consumer into a religion
Tahani Al-Hammad: Deducting more than a third of the salary is an unfortunate decision by the Monetary Authority
Abdulkarim Al-Shadoukhi: Balance check revives the installment market
Al-Dariwish: The installment business is worthwhile because the interest charged to the debtor is rewarding.
Anas Al-Shadoukhi: Society's view of the creditor as an oppressor is unfair
Al-Nafjan: Installment trading revitalizes the general economy

At the beginning of the survey, Mr. Abdul Mohsen Al-Sayeh spoke about the reasons that motivate the choice of religion in the presence of banks offering low-interest loans, explaining that the reasons are the ease of obtaining the debt, because the religion only requires the presence of the guarantor and signing checks without considering the salary, although the percentage obtained by the religion is high, but the tricks of God are stronger, so if you need liquidity to complete the house, and you cannot obtain a loan from the bank, the available means is to turn to the religion.

Guarantor and distrust
As for the debt requirements that the religion requires, it is the guarantor, checks, and verification of the person and his honesty, and about the advice he gives to those who had to resort to the religion, Al-Sayeh says that I advise them to take as much as they need, and not to take it for stocks or ephemeral needs, and to turn to construction and buying a house.

Al-Sayeh emphasized the difficulty of obtaining something without installments due to the high prices and fixed salaries, pointing out that a large part resort to debt because they cannot benefit from banks due to their names in SAMA because of their commitment to repay loans, which makes it impossible for them to borrow again.
He noted the difficulty of obtaining a sponsor at the present time because of the lack of trust, and on the decision of the Monetary Authority, which requires banks not to deduct more than one third of the salary, he explained that if the applicant can repay the loan, there is nothing to prevent him from giving it to meet his need.

He pointed out that extending the term of the loan is up to the borrower, if he is willing and the need for the loan is urgent, there is no reason why not.
Regarding the decision of the Monetary Authority, which requires banks to finance less than 17 salaries, he believes
17 salaries do not meet the desired need that makes the wait 5 years.
The legal aspect
Al-Sayeh emphasized that a large percentage of creditors are concerned with the legal aspect, as the image they are doing is legitimate, which is the sale of a commodity owned by the creditor to the debtor and then the debtor sells it to a third party.
As for the wording of the installment contract, he sees it as a kind of precaution for the creditor, and spoke of the conditions required for the installment process, which include a guarantor, signed checks, and a pledge to repay.
Al-Sayeh concluded his speech with advice to those who are forced to resort to debt to commit to repayment so that they do not accumulate installments and make it difficult for them to repay them.

The best option
Mr. Yousef Al-Hammad says about the reasons that motivate resorting to debt, it is to provide liquidity even if you have a loan with the bank, as they are not tied to his name and are not subject to the conditions of the Monetary Authority, and as long as the person is able to pay the installment, they are the best option to provide liquidity.
He said that the percentage is very high, but nevertheless it puts a barrier between you and debt except for a very important matter, while bank loans in light of their low Murabaha ratio encourages taking a loan from them even if there is no benefit from it.

Religion is right
As for debtors' requests, he believes that they are entitled to them, as nowadays there is a significant percentage of defaults. Al-Hammad advises those who have to resort to debt to take as much as they need, and start paying first so as not to accumulate installments.
Installments for the working woman
He stressed the difficulty of obtaining something without installments, due to the rise in commodity prices and the stability of the salary scale, where some things that were previously considered normal, such as applying for a maid, are now forced to resort to installments to solve the maid crisis.
SIMAH is the cause
Al-Hammad believes that SIMAH is the one who forced the consumer to resort to debt, as there is a large percentage of citizens who are willing to bear more than one installment to own a house, for example, but the multiplicity of loans is restricted by SIMAH.
Liquidity
He emphasizes that resorting to debt is the easiest solution to obtain liquidity as quickly as possible once the conditions are met
On the difficulty of obtaining a guarantor, he says that the responsibility that the agent bears is a great responsibility, the difficulty of obtaining a guarantor has existed since ancient times, as it is rare to find a person

<It is rare to find someone who guarantees you at the expense of himself, unless he is your brother, father or very close to you.
Negative aspects of the institution's decision
On the decision of the Monetary Authority, which requires banks not to deduct more than a third of the salary, he believes that it has negative aspects, the most important of which is that when you need a certain amount, the bank's loan may not help you, which forces you to resort to debt and their high rates, which does not mean that it does not have positive aspects.

As for the one who says that banks must finance less than 17 salaries, he considers it insufficient compared to the extension of the installment years.
Importance of the Sharia aspect
On the importance of the legal aspect for the creditor and the debtor, he says that for me the legal aspect is very important, and the creditor whose dealings I do not trust, I avoid him and look for another. Extra precaution
As for the wording of the installment contract, he believes that it contains an excessive precaution by the creditor.
As for the conditions required for the installment process, they consist of a non-military guarantor, signed advance checks for the number of installments, and signature on the contract.
Debtor's disregard for conditions
Tahani Al-Hamdan says that the reasons that motivate resorting to debt in the presence of banks that offer low-interest loans are that banks may not give some people such as bank employees who do not work and do not have salaries or who work in companies that do not have agreements with banks, because they do not require a guarantor, while the debtor requires a guarantor and overlooks some conditions.
She believes that the percentage of debt is high, because it is the need that forces them to resort to them, pointing out that their requests are difficult but can be provided when needed.
She advises those who have to resort to religion to resort to the beloved religion of contentment.
Delayed mortgage loan
She emphasizes the difficulty of obtaining something without installments, especially real estate, because the real estate bank delays the issuance of its loan, and if issued, it is small and does not meet the need to build or buy.
She believes that SIMAH is the organization that forced them to resort to religion, because it is impossible for them to get a loan from the bank.
She points out that resorting to debt is the easiest solution to obtain liquidity as quickly as possible, in light of the obligation to provide a guarantor, checks and salary deductions to ensure rights.
Difficulty in obtaining a sponsor
Tahani Al-Hamdan emphasizes the difficulty of obtaining a guarantor because he is the one who bears the full responsibility when the debtor defaults. As for the decision of the Monetary Authority, which requires banks not to deduct more than a third of the salary, she believes that it is unfortunate, because it forces a certain period of time to repay the loan.
She also believes that the decision of the Monetary Authority, which requires banks to finance less than 17 salaries at the moment, is too little and does not meet the desire. Laxity in the legal aspect
She says that the majority are concerned with the legal aspect for debtors and creditors who work for their own account, but there are some people who neglect the legal aspect.

The installment contract is unfair
She confirms that the wording of the installment contract is unfair and favors the creditor with all its clauses, but the need forces silence.
As for the conditions required for the installment process, it consists of a guarantor Garm, a statement of account for 6 months, salary deductions, signed checks for the amount of the installment over the number of months to ensure the right.
Opinions of creditors
In another aspect, Amlak Newspaper stood on the opinions of creditors, where Fahd bin Abdulkarim Al-Shadoukhi believes that the trade in this field is worthwhile if there is a follow-up to the circulation of capital and seriousness in the development of the business.
As for the percentage of Murabaha among creditors compared to banks, he says that the situation is different because he has high liquidity and low risk-taking rate, and also to guard against default and non-performance.
The need for liquidity
The reason behind the revival of the debt market is due to people's need for liquidity, especially those who are building and renovating and often to cover emergency needs.
As for the issues that creditors face when claiming defaulted receivables is the lack of cooperation from the courts, as the debtors are keen to avoid resorting to the courts by requiring government guarantors and signed checks.

The market is booming.

Market recovery
He believes that this program will revive the market, and there will be competition between religions to reduce the Murabaha rate, as one of the reasons for the high Murabaha rate is the high rate of risk. As for the concern for the legal aspect of the creditor and debtor, he believes that there is a very large group that seeks to obtain legal contracts, whether from the debtor or the creditor, but there is a small group that God guided us and them to loosen the legal aspect in this transaction.


Debt default rate
As for the goods that the creditor prefers to use for installments are cars and Sawa cards, because they do not need storage. As for the drafting of the installment contract, he believes that the contract is fair for both parties, but there are conditions in the contract that are not considered by the judge, for example: If the debtor defaults for one, two or three months, he is obliged to pay the full amount of the current amount and the non-current amount is not considered.
He says that the default rate is as high as 60%, with bad debts amounting to 20%, so the increase in the profit rate comes to address these issues.
High turnout
As for the demand for debt, he says that it is unprecedented and the categories that usually practice borrowing include all categories, even those who have liquidity, but according to his need, especially real estate people.
Competition between religions
As for the competition between religions, he says that there is no clear competition, due to the need of the market, and often the debtor's desire for a tolerant person.
As for the impact of banks on the creditor market, he points out that those who have little liquidity do not feel the impact, and in any case we have our own market and our own clients whom we know very well.
Appeal to the state
As for the legal form that you do when signing the contract, he says we buy the commodity and then we write the contract, and according to the contract the debtor can sell the commodity to another person.
As for their requirements from the state, they are as follows
- A reference for the disclosure of customers' credit records, where the Religion Information Center operates.
Seek to preserve our right as we are part of the country's economy.
Courts' response is poor
As for the courts' response to creditors' claims, he believes that it is a weak response, dates are far away, and the creditor is always seen as the oppressor, and one of the things that crushes us is the ease of issuing an insolvency deed.

My advice to all those who apply for installment loans is to only apply for debt when there is an urgent need.
Interest is rewarding
Faisal Al-Dariwish believes that trading in this field is worthwhile because the interest charged to the debtor is rewarding. The rise of Murabaha among creditors
He attributes this to the fact that there is no salary requirement and no credit history requirement at SIMAH.
Recovery of the debt market
As for the reasons that lead to the recovery of the debt market, he says that most people are tied to old long-term loans of up to 120 months, especially those who borrowed in 2005-2006, when the old system at the Monetary Agency that enables you to take a long-term loan, in addition to the recovery of the stock market in that period, which prompted most people to commit to bank loans and did not have the opportunity in this period to take external loans.

He talked about the issues facing the creditor when claiming his non-performing dues, pointing out
The knowledge of the borrower or guarantor makes the creditor fall into embarrassment, in addition to the weakness of the legal system.
Successful program
Regarding the balance check program, he believes that it is a successful program if implemented, as it will guarantee the right of the two and open the field of competition between religions, in addition to being easier for the creditor as he does not need a guarantor.
Attention to the legal aspect
He says that a large percentage of borrowers and creditors pay attention to the legal aspect, and some of them resort to religion because they trust the creditor more than the bank.
Commodities that are preferred to be used in installments include cars and communication cards, because they do not need to be stored.
Fair drafting
Al-Dariwish believes that the wording of the contract is fair between the two parties, and has some clauses that are precautionary.
He touched on the percentage of bad debts and said it reaches 20%. The percentage of defaults currently ranges from 30% to 40%.
Religion turnout?
He believes that the demand for debt is high because it meets the needs of the borrower with a simple monthly installment, especially construction owners in critical times.
As for the most prominent groups that usually borrow, he pointed to construction owners and military sector employees.
Competition between religions
As for the competition between religions, he pointed out that the only competition is to postpone the installment for one or two months.
As for the influence of banks on the market, he explained that the banks by virtue of the lower percentage represent the first desire of the borrower, but since we are not restricted by the conditions of the Monetary Agency, we have our market, thank God.
He disclosed the legitimate image that they do when signing the contract, which is as follows
Selling to the debtor, goods that we own and guide him to whoever buys them, because there is a market for religion and cooperation between them.
As for our requirements from the state, it is to find a reference for us that enables us to know the customer's record, and to interact with us when we claim our rights. And not to look at us with a criminal look.
Finance experts speak
Finance experts had a categorical opinion, as Mr. Anas Al-Shadoukhi spoke about the impact of this trade on the general economy and real estate in particular, saying: The installment trade has a major role in the movement and marketing of goods, and studies indicate that many commodities reach the marketing of 70% of them, as those who cannot buy the commodity and need it, no installment facilitates the process of obtaining it in comfortable installments, and installments and good marketing makes some people buy what they do not need As for real estate, we are in a society where 75% of them do not own the house of a lifetime or what is called the king's house, and this means a very strong need to own these houses, whether large or small, but the matter has reached the ownership of apartments, and it may one day reach the sale of rooms (studio) as well! This coincides with the difficulty of buying with cash also due to weak incomes against high expenses, which makes the marketing of small units also needs financing and installment programs to speed up the sale process and facilitate it for those who need it, as the impact of financing on real estate is positive and develops the real estate movement as well.

After the global financial crisis
As for the global economic crisis on the religion, he says that the global crisis affected everyone and this is more understood by everyone who is related to financing operations, especially the large ones, where the flow of cash to the market has decreased very significantly, and some were excluding the impact of the global crisis due to its great distance from its original home, but in fact the cash has decreased very sharply, which led to the existence of defaults, especially in large loans, while small loans were very little impact.


Attention to Shari'ah aspects
Al-Shadoukhi addressed the interest of those dealing in finance in Sharia aspects, pointing out that the collapse of banks in the global crisis and the steadfastness of Islamic activities led to the acceleration of operations that preceded the crisis for a time but slowly, and the crisis accelerated this slowdown as people's faith increased in the words of Allah (God destroys usury) after they saw publicly what happened to usury owners; however, this does not mean its interruption or extinction, as there are still those in the market who do not take into account these aspects and see their operations as purely commercial and have nothing to do with Sharia and the most important is how to earn! On the other hand, the majority, praise be to God, has become asking for the Sharia ruling first before the search process takes place and looking for a Sharia fatwa for every financing product or entity he deals with, this is on the side of customers, while on the side of traders (religion), most of them tend to the permissible Sharia operations in terms of the nature of the operation and the financing mechanism. The nature of the process and the financing mechanism, but there is something to be noted, which is the greed that has gone out of its way in financing operations, and I see it as a major legal violation that exploits people's needs and vulnerability by doubling profits on them, so you find someone, for example, selling you a Tide soap worth 10,000 riyals and selling it for 15,000 riyals within a year! Or something like that, and this is greatly exaggerated, especially in large amounts, where the debts increase on the back of the customer who is forced to pay these amounts in exchange for his immediate need! Variation in the Murabaha rate
Al-Shadoukhi pointed out that the Murabaha rate varies among the popular religion in the local market, and in any case it is higher than banks and companies, due to several reasons, the most important of which are: High risk for the financier, as he does not have what the bank has, such as salary stabilization, immediate withdrawal from the salary and a subscription to SIMAH to exchange credit information! Investors compensate for this risk by raising the percentage of profits, while banks and companies range between 3.5-7% in real estate and personal financing; the lowest percentage dealt by popular traders, as they are called; is 10% or 15% and reaches 50% for some of them, as seen in Tide sellers and Sawa cards! One of the reasons for the high prices is also the small capital versus the capital of banks, which can rotate capital faster and are forced to reduce Murabaha to market their products, and this of course does not justify the greed that occurred as some of them took advantage of this matter to exaggerate with very high fees that burden the needy and make the rich richer and the poor poorer! The creditor is unjust or oppressed
As for society's view of the creditor as unjust and the debtor as oppressed, he says it is not correct, as the merchant did not hit the hand of the debtor to borrow from him! If we look at the issue from a legal rights point of view, the merchant made a commodity and set its price, and the buyer agreed to this offer, signed and paid the checks or sums, the situation is not unfair! But people say this because they see that they are forced to borrow and that the financier must cooperate with them, and being under the greed and greed of some merchants and having most of their salaries and incomes go as installments makes them feel oppressed! This is a topic that needs reflection, as exploiting people's needs and overinvesting in them is a kind of prejudice and injustice to them as well! The recovery of this market
He believes that the reason behind the revival of this market is due to the extreme need of some people, as well as the poor financial management of many citizens and the lack of control and regulation of expenses as well as luxury and seeking to buy luxuries in installments, in addition to the presence of a segment that banks refuse to give them financing because the conditions do not apply to them, either for previous defaults or because the salary is consumed by a previous loan or the like, which forces them to resort to Tide sellers.


Procrastination in repayment
He pointed out that procrastination reduces profits for the investor and his business may collapse completely if he agrees with a high default rate and poor follow-up and guarantees; but it is not compared to other trades because every trade has risk, profit and loss opportunity, and finance is considered a profitable trade with high risk, and it is known that the higher the risk, the higher the percentage of profits often but not always.

Religion reference
As for the existence of a religion reference such as SIMAH to ensure the rights of all, I support regulation in the interest of the merchant and the customer at the same time, as the regulations that apply to banks should be the same for financiers; but with cooperation with them and not by hurting them or complicating them because the complexity hurts the merchant and makes him continue to violate as well, and these financiers are part of the country's economy if he does not cooperate with him and facilitate his procedures, they are not expected to cooperate with him I hope that there will be symbolic subscriptions for these people in SIMAH to ensure their rights and that SIMAH is interested in this segment to know the financial history of their customers. Positive cooperation has good fruits and reduces defaults, God willing, and tightens the stranglehold on those who procrastinate in the rights of people, and it is also in the interest of the customer not to restrict him in his livelihood and take installments beyond his actual capacity.
Variation among traders
The rate of default varies greatly among merchants according to the policy in facilitating financing, and decreases in strict procedures to 2% and increases in facilities to 20% according to the quality of the merchant's customers and according to his conditions and work mechanisms, and default is due to reasons such as sudden change in the customer's expenses without calculating them, as well as giving the customer high installments or additional installments with previous installments, or losing some customers in trade, or car accidents where the customer has to pay more than his actual capacity. Trade, or car accidents where the customer is forced to buy another car in installments or leasing and get additional payments from the salary, or the feeling of injustice for some and stop intentionally and this is very few but exists, as well as one of the reasons for the rise in consumer items on the citizen with a low salary, and these reasons are prevented by the necessary precaution in not giving the customer installments beyond his ability and helping him in financial planning for the future so that the default does not occur.
The impact of trade on the economy
Finance expert Mr. Ibrahim Al-Nafjan - Bank Al-Jazira sees the impact of this trade on the general economy and real estate in particular is to revive the general economy, especially real estate, and increases the financial capacity of real estate companies and causes a real estate recovery in all its types and forms, provided that it is done without one party over the other, and that it is done with full transparency.

Religion is less affected
He believes that debt is the least affected by the global economic crisis because they only grant debt after taking sufficient guarantees for that, but there is another issue facing them, the entity that has been lent to has suffered major financial losses and thus weakened its ability to repay.
Regarding the extent to which dealers in finance are interested in Sharia aspects, whether a creditor or a debtor, Saudi society cares about halal and haram, whether a creditor or a debtor, in case there is a suspicion that it is usury.

Share No.... Riba
He believes that the percentage of Murabaha is considered more participation than usury and is therefore considered halal unless it is determined by a certain percentage of the money imposed.
As for the society's view of the creditor as unjust and the debtor as oppressed, he believes that it is not a correct view because it is done with the consent of both parties and their full desire to do so.
Market recovery
As for the recovery of the debt market, he attributes this to the economic crisis, poverty and unemployment. He does not believe that procrastination in payment reduces the profit rate, if we compare the profits of the debtors compared to the profits of other traders
The profit ratio of real estate is higher than that of debtors but loses credibility in the market.
Religion reference
As for finding a debt reference such as SIMAH to ensure the rights of all, he says that the debtor must have collateral for the debt, whether it is banks, institutions, other companies or guarantees such as real estate.
He also believes that the default rate is high
This is due to the economic conditions worldwide, the global economic crisis and the reliance of a large percentage of realtors on these facilities.
The most popular types of finance trade, he says, include real estate activity, commercial activity, individual needs, industrial activity.