|31 March, 2019

Sakani offers $37,300 new interest-free loan to Saudis

Sakani program aims at finding more supportive solutions for citizens to own houses

View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, March 1, 2017. Image used for illustrative purpose.

View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, March 1, 2017. Image used for illustrative purpose.

REUTERS/Faisal Al Nasser

RIYADH — The Housing Ministry’s “Sakani” program has announced an interest-free loan of SR140,000 to finance citizens working in government and military sectors, retired military personnel and private sector employees who are 50 years old or above.

Beside the previously announced SR500,000 housing loan, the new loan will be provided in partnership with banks and financial institutions.

“Available options for registered beneficiaries in the Ministry of Housing and the Real Estate Development Fund lists include purchasing ready-made housing units, or housing units under construction within the ministry’s joint projects with the private sector,” a Sakani press release stated.

Citizens who meet the requirements can register for the Real Estate Advisor service through “Sakani” online portal or contact the Customer Services Center at 199090 to benefit from the service and find suitable solutions for them. This service is provided in partnership with seven banks and financial institutions, the National Commercial Bank, Riyad Bank, Arab National Bank and Albilad Bank, as well as financing companies Deutsche Gulf, Amlak International and Dar Al Tamleek.

The beneficiaries with a montly income of SR14,000 or less will receive the “subsidized” SR500,000 real estate loan free of interest, while others will receive a 35 percent interest discount based on income and the number of family members, in addition to the interest free loan.

The Sakani program aims at finding more supportive solutions for citizens to own houses, and serving different segments of citizens to facilitate their access to appropriate housing and financing solutions and increase ownership percentage. The program’s financing solutions also included the initiative to support military personnel, which was announced last year.

Sakani targets through the initiative to enable the beneficiaries of housing finance to obtain an additional interest-free loan of 20 percent of the property value, up to a maximum of SR140,000, to be paid back after full payment of the SR500,000 housing loan, bringing the total amount of the loan to a maximum of SR640,000 .The Sakani program came in line with the Saudi Vision 2030, which aims to raise house ownership rate to 70 percent by the end of the next decade, through shared support by 16 government agencies to remove obstacles and enable citizens to own suitable housing.

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