Consideration of Loans Granted by the Development Funds and Banks Affiliated with the National Development Fund

Saudi Central Bank

Circular

Number: 42049450
Date: 17/07/1442 (AH)
Attachments: None

To: Respected Sirs,

Peace, mercy and blessings of God be upon you,

Subject: Consideration of Loans Granted by the Development Funds and Banks Affiliated with the National Development Fund.

Reference is made to the Responsible Financing Principles communicated via Saudi Central Bank Circular No. (46538/99) dated 02/09/1439 AH, which stipulate in Paragraph No. (13) that financing entities must calculate loans provided by government entities within customers' monthly obligations and consider them in debt-to-income ratios.

Accordingly, the Saudi Central Bank confirms that all banks, commercial banks, and financing companies must consider loans granted by the development funds and banks affiliated with the National Development Fund to individual customers, based on reports issued by approved credit reporting agencies. Furthermore, deductions made by the development funds and banks affiliated with the National Development Fund must be calculated within customers' monthly debt-to-income ratios for those seeking any financing products.

For information and necessary action.

Yours faithfully,

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

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Distribution Scope:

• Banks and commercial banks operating in the Kingdom.
• Financing companies operating in the Kingdom.

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P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000