The management fee is 1% of the financing amount with cap of SAR 5,000.
Through the decreasing balance mechanism, the annual profit is distributed based on the financing amount in monthly installments and based on the value of the remaining balance of the principal amount.
REDF Support is used to pay down payment only for ready unit and off plan products, but it’s possible to get REDF subsidy in cash for self-construction product.
No, he is not allowed to apply for monthly subsidy since customer is eligible for one subsidy only from REDF
No, he is not allowed to apply for REDF products and initiatives since customer is eligible for one subsidy only from REDF
REDF subsidy will be given with the first trench. and it could not be given with the further trenches.
How to obtain the product or service:
• The customer goes to one of Bank Al Bilad’s sales channels (branches, direct sales, telephone sales).
• The initial calculation is provided to the customer and the customer’s eligibility for support is verified.
• The application is studied based on the mentioned terms and conditions.
• If the request is approved, the necessary documents will be signed by the client.
Examples of the calculation mechanism:
Example 1:
Property value: 1,000,000 riyals
Financing amount: 900,000 riyals
Down payment amount: 100,000 riyals
The value of the support provided by the Real Estate Development Fund: 100,000 riyals.
The value of the advance payment to be deducted from the customer: 0 riyals.
It is clear from the example that the entire subsidy was used in the advance payment.
Example 2:
Property value: 1,000,000 riyals
Financing amount: 850,000 riyals
Down payment amount: 150,000 riyals
The value of the support provided by the Real Estate Development Fund: 100,000 riyals
The value of the advance payment to be deducted from the customer: 50,000 riyals
It is clear from the example that the entire support was used to deduct the value of the advance payment.
Example 3:
Property value: 800,000 riyals
Financing amount: 720,000 riyals
Down payment amount: 80,000 riyals
The value of the support provided by the Real Estate Development Fund: 100,000 riyals.
The value of the advance payment to be deducted from the customer: 0 riyals.
New financing amount: 700,000 riyals
It is clear from the example that the entire support was used for the down payment and to reduce the financing value for the customer.
Example 4 (self-construction product):
Finance amount: 1,000,000 riyals.
Self-construction down payment amount: 250,000 riyals.
REDF subsidy amount: 100,000 riyals.
Total granted amount : 350,000 riyals.
