Regulatory Alerts2021-03-01
Consideration of Loans Granted by the Development Funds and Banks Affiliated with the National Development Fund
The Saudi Central Bank mandates that all domestic banks, commercial banks, and financing companies calculate deductions from National Development Fund-affiliated development funds within customers' monthly debt-to-income ratios when evaluating individual financing applications. Relying on reports from approved credit reporting agencies, this directive requires financial institutions to treat these specific government-backed loans as standard monthly obligations in line with the Responsible Financing Principles. Institutions must apply this calculation method to accurately reflect borrowers' total repayment capacity across all available financing products.
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