Saudi banks said to deny accelerated loans to applicants with debts

Banks in Saudi Arabia will not be able to grant accelerated loans to applicants with outstanding debts as part of the newly-launched borrowing scheme under the Real Estate Development Fund (REDF), according to Talaat Hafez, secretary-general of the Media and Banking Awareness Committee of Saudi Banks.

Lenders retain the right to examine the credit scores and records of applicants, Hafez told Makkah newspaper. Banks must also abide by regulations on salary deductions set by the Saudi Arabian Monetary Agency (SAMA), the kingdom’s central bank.

Last week, REDF launched its much-anticipated loan program. The fund said that around 200,000 candidates on its waiting list could apply for accelerated mortgages, which would be repaid over a 10-year period.