30/05/2010
Saudi banks turns into low-interest loans up to 1%
Saudi market preparation to receive new lending procedures to meet the customer needs and motivation to modify their credit records.
According to «Al-Eqtissadyah» which has revealed that some Saudi banks turn this year to launch new products to give customers low-interest loans up to 1 percent, depending on financial statements and safe credit history, in a move aimed at attracting the largest number of customers of creditworthiness owners in the Kingdom.
However;sources has clarified this new method which will lead during the coming period a Saudi bank in which «Al-Eqtissadiyah» confidentially keeps his name, will tend to the intense competition among banks in terms of lending, and moving in liquidity, especially with the availability of a effective credit database in the Kingdom through the Saudi Credit Bureau (SIMAH), which enables banks to identify credit worthiness of customers through credit records, which enables the bank to assess risk accurately factor that allows it to deal with each person based on his information.
Therefore; through this new mechanism providing customers with the lowest and highest limits, where the interest rate will be reduced if the client is a financially approved with a safe credit record, while the interest rate will rise significantly with the client financially weakness.
It continued: A British Bank have a web site in which refers to the possibility of providing loans to customers with high risks of the benefits up to 2400 percent, the purpose is to finance that class and take advantage of the high-interest''.
The loan defaults such as direct increasing direct with the rate of growth in credit, at a time when credit increased directly with the beginning of the rise in oil prices in 2000. After strong economic growth in the Kingdom, this coincided with the growth of the stock market and IPOs increased credit growth significantly, until reaching this currently stage.
