Life in Saudi Arabia as a student or working expatriate is full of new flavors and opportunities at times, and of course, let’s not forget, obstacles too – like tuition fees, deposits for accommodation or health services, which at times may spiral out of control. The question one ends up posing to oneself, hence, is ‘how can I obtain a loan in Saudi Arabia?’
The answer is not as easy as Saudi Arabia does not have a similar system to that of the United States, Europe, or India in its lending operations. The Kingdom adheres to Islamic finance principles, with the traditional interest rate (riba) prohibited.
Hence, the form is different in this place; it does not mean you cannot borrow money when necessary.
Read further to find out how to get loan in Saudi Arabia. Designed specifically for newly arriving students and expatriates in the Kingdom, this guide will undoubtedly be one of the most convenient and straightforward resources to refer to.
Why Loans Are Different in Saudi Arabia
If you’ve borrowed money before, you’re probably familiar with the term “interest rate.” Not in Saudi Arabia. They don’t use that word; instead, the bank uses models like: Murabaha – the bank buys something on your behalf and then sells it back at a profit; Ijara – essentially leasing out, you’re using an asset and paying rent for it;
Tawarruq – getting cash through the sale of a commodity after forging a trade accepting an interest rate charge-free. This system ensures that lending remains compliant with Shariah principles. The bottom line is that when applying for a loan in Saudi Arabia, look for the profit rate, not the interest rate. How to get loan in Saudi Arabia
Who Can Apply for a Loan?
Saudi Nationals
- Wide access to almost every loan type: personal, car, housing, and education.
- Government workers often enjoy lower profit rates and faster approval.
Expatriates (Foreign Workers
- Eligible for a personal loan in Saudi Arabia if:
- You have a valid Iqama (residence permit).
- You work under a recognized employer.
- Your salary is transferred to the bank.
International Students
- Direct student loans in Saudi Arabia are rare.
- Most rely on:
- A guarantor (family or sponsor).
- University installment plans.
- Scholarships like the King Abdullah program.
Types of Loans Available
- Personal Loan in Saudi Arabia – There’s no requirement to mention the reason. It may be for tuition, rent, medical expenses, or any other unexpected expense.
- Student Loan in Saudi Arabia – This is not generally available. It’s offered only through certain banks/universities and requires a guarantor.
- Car Loan – This is one of the most popular loans among students and expatriates for purchasing vehicles.
- Housing Loan – This is primarily available to local citizens, with a limited number of facilities also available to foreigners.
- Credit Card Loan / Cash Advance – Credit card-based personal, small, short-term loan if you have card qualifications.
Step-by-Step: How to Get a Loan in Saudi Arabia
Step 1 – Select the Bank
- Al Rajhi Bank: Shariah-compliant, quick approval.
- Riyad Bank: Good for education financing.
- Saudi National Bank (SNB): Strong digital loan system.
- SABB (HSBC): Best for expats with an international background.
Step 2 – Check Eligibility
- Must be 18 or older.
- Valid Iqama or student visa.
- Proof of income (salary slip, stipend, or guarantor income).
- Positive SIMAH credit record.
Step 3 – Prepare Documents
- Passport and Iqama copy.
- Salary certificate/enrollment proof.
- Bank statements (3–6 months).
- Employer or sponsor letter.
Step 4 – Apply
- Online through bank apps.
- Offline by visiting a branch.
Step 5 – Get Approval
- The bank reviews your credit history via SIMAH.
- Once approved, the loan is deposited within 2–3 working days.
Case Study Examples
Case 1: Student Loan
Ahmed, an Indian student at King Fahd University, needed SAR 25,000 for tuition. Since there were no direct student loans, he applied for a personal loan with his father (a working expat) as guarantor. Riyad Bank approved the request under Murabaha financing. How to get loan in Saudi Arabia
Learning: Students typically require support from a family member or sponsor.
Case 2: Expat Loan
Grace, a Filipino nurse in Jeddah, applied for SAR 40,000 at Al Rajhi Bank. Her salary was already being transferred to the same bank. With a clean SIMAH record, her loan was approved in 48 hours.
Learning: Salary transfer makes loan approval much easier.
Top 10 Banks for Loans in Saudi Arabia (2025)
| Bank Name | Loan Types | Profit Rate | Key Benefit |
|---|---|---|---|
| Al Rajhi Bank | Personal, Car | 3–4% | Fast approval, Shariah compliant |
| Riyad Bank | Education, Personal | 3–5% | Education financing support |
| SNB (Saudi National Bank) | Personal, Housing | 3–4% | Strong digital services |
| SABB (HSBC Saudi) | Expat loans | 3–6% | International profile support |
| Arab National Bank | Personal, Car | 3–5% | Flexible repayment terms |
| Banque Saudi Fransi | Personal, Housing | 3–4.5% | Salary transfer deals |
| Alinma Bank | Student + Personal | 3–5% | Packages for youth |
| Samba Bank | Personal loans | 3–6% | Quick processing |
| Gulf International Bank | Car, Personal | 3–5% | Easy approvals |
| Albilad Bank | Student financing | 3–4.5% | Installment plans with universities |
Smart Repayment Strategies
Budget first: Let’s keep 20–30% of your monthly income for payment.
Never miss deadlines: Late payments are reported by SIMAH. Overpay when possible: Early settlement can reduce costs. Track expenses: how to get loan in Saudi Arabia
You can use applications or set up your bank to send SMS notifications related to tracking your financial situation. Avoid multiple loans: Focus on repaying one loan at a time.
Role of SAMA (Saudi Central Bank)
The Saudi Arabian Monetary Agency (SAMA) regulates all financial activities. How to get loan in Saudi Arabia
- Its role includes:
- Ensuring loans are Shariah-compliant.
- Protecting borrowers from unfair practices.
- Setting rules on maximum profit rates.
- Overseeing SIMAH, the credit bureau.
- Handling complaints between banks and customers.
For expats and students, this means your loan is always under a transparent legal framework.
FAQs
Can expats get loans in Saudi Arabia?
Yes. Expats can get loans if they hold an Iqama, have a salary transfer, and possess a clean credit history.
Are there student loans?
Yes, but usually with a guarantor or through education financing plans.
Do banks charge interest?
No, only profit rates; it’s Islamic finance.
How fast can I get a loan?
Some banks disburse funds within 24 to 72 hours after approval.
What if I miss payments?.
Reported to SIMAH. It could affect the renewal of your Iqama and any future borrowing.
Conclusion
Applying for a loan in Saudi Arabia is not merely a matter of filling out forms; it requires careful consideration and thorough preparation. It entails an understanding of the country’s unique Islamic finance system and eligibility requirements, as well as selecting the appropriate bank. How to get loan in Saudi Arabia
The best options for students are scholarships and education financing. Expat: Maintaining a salary transfer and a clean score in SIMAH makes the loan easy to approve. Loans enable you to study, live, and build your future in Saudi Arabia, provided they are managed responsibly. So, always borrow wisely, repay on time, and never take a loan as an end unto itself. It’s not money for nothing, it’s money as something.
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