APR Disclosure

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2020-09-24

Rules for disclosing the prices of financing products

Individuals financing product

The Annual Percentage Rate (APR):

It is the discount rate at which the present value of all payments and installments that are due from the Borrower, representing the Total Amount Payable by the Borrower, equals the present value of all payments of the Amount of Financing available to the Borrower on the date on which the Financing amount or the first payment thereof is available to the Borrower.

Clarification Example

Clarification Example

Clarification Example

APR may differ depending on the amount and the maturity period different from above and subject to credit scoring of each customer.

Finance Amount:

The contract stipulates the amount of financing you will receive in addition to the period of repayment of the installments, stating their value and the maturity date of these installments. The data also include the cost of obtaining funding in terms of knowing the fixed term cost rate and management fees.

Maturity in Years:

The duration of the contract agreed upon between the parties, which shall indicate the date and expiry of the contract with the parties' with the terms of the contract

Monthly repayment amount:

These payments are recognized in the contract, and the lessee is obliged to pay them on the due dates. The contract shall also include a schedule of repayment installments, in which the value of the asset's rent and the value of the right of ownership shall be shown separately, provided that the premium for any period shall not be less than the principal's rent for that period in the contract.

Residual Value:

The last payment is usually 0 % to 35% of the car price which you decide to pay at the end of the lease. It makes the monthly rentals that you pay less, but you have to be ready to make a large payment at the end of the lease.

Corporate finance products

-Types of financing:

- Example of vehicle financing:

* Murabaha

1. The financing period is 12 months

Clarification Example

Type of financing	Asset Type	Finance Amount	Duration of the contract	Profit margin	Monthly Repayment Amount
Murabaha	Car	51,690 SAR	12	6.5%	4,588 SAR
Murabaha	Car	51,690 SAR	12	7.5%	4,631 SAR
Murabaha	Car	51,690 SAR	12	8.5%	4,674 SAR

2. The financing period is more than 12 months

Clarification Example

Type of financing	Asset Type	Finance Amount	Duration of the contract	Profit margin	Monthly Repayment Amount
Murabaha	Car	51,690 SAR	36	7.5%	1,759 SAR
Murabaha	Car	51,690 SAR	36	8.5%	1,802 SAR
Murabaha	Car	51,690 SAR	36	9.5%	1,846 SAR




* Ijara

1. The financing period is 12 months

Clarification Example

Type of financing	Asset Type	Finance Amount	Duration of the contract	Profit margin	Monthly Repayment Amount
Ijara	Car	51,690 SAR	12	6.5%	4,782 SAR
Ijara	Car	51,690 SAR	12	7.5%	4,825 SAR
Ijara	Car	51,690 SAR	12	8.5%	4,868 SAR

2. The financing period is more than 12 months

Clarification Example

Type of financing	Asset Type	Finance Amount	Duration of the contract	Profit margin	Monthly Repayment Amount
Ijara	سيارة	51,690 SAR	36	7.5%	1,957 SAR
Ijara	سيارة	51,690 SAR	36	8.5%	2,001 SAR
Ijara	سيارة	51,690 SAR	36	9.5%	2,045 SAR

APR may differ depending on the amount and the maturity period different from above and subject to credit scoring of each customer.