Regulatory Alerts2023-10-31
Circular Re. Rules Governing Calculation of Annual Percentage Rate (APR)
The Saudi Central Bank issued the Rules Governing Calculation of Annual Percentage Rate (APR) to standardize APR calculation methods for retail lending products, replacing previous guidelines. These Rules mandate the use of a specific Excel-based calculator and require finance providers to include most fees and costs in the total cost of finance while excluding early repayment penalties. The regulations apply to all advertising, contracts, and disclosures involving APR and become effective 90 days after publication.
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