Buying a new car can be a daunting task, mainly because you’ll need a large sum of money to purchase one. Fortunately, getting the car that you want is made easier by taking a bank loan.
In Saudi Arabia, there are quite a number of banks that offer car loans as well as auto lease financing. In this article, we will go over the eligibility criteria, requirements, and other details involved in applying for a car loan. We have also included several banks and the car loans/auto lease financing options that they have.
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Car Finance Loans in Saudi Arabia
Having a car makes it easier to get around — going to work, bringing children to school, or simply driving to different places. However, buying a car can also be really expensive; it’s a good thing that many banks provide car loans and auto lease financing.
Eligibility
To be eligible for a bank loan or auto lease financing, you’ll need to meet several criteria in terms of age, salary, employment period, and other factors. These may vary from bank to bank.
For example, to qualify for Bank Albilad’s auto lease financing, a customer must:
- Be at least 18 years old;
- Have a current account with Bank Albilad; and
- Be employed in a sector that’s approved by the bank.
Meanwhile, when it comes to their car lease (without salary transfer), Al Rajhi Bank has different sets of eligibility criteria for Saudis and non-Saudis (expats), as well as for government sector and private sector employees:
Saudi Nationals (Government Sector):
- Age 18 to 60 years old;
- Minimum salary of SAR 5,000; and
- Minimum employment period of 6 months.
Saudi Nationals (Private Sector):
- Minimum age 21 to 25, maximum 60 years old;
- Minimum salary of SAR 5,000 – 7,500; and
- Minimum employment period of 6 – 18 months.
Expats (Government Sector):
- Age 21 to 60 years old;
- Minimum salary of SAR 5,000; and
- Minimum employment period of 6 months.
Expats (Private Sector):
- Maximum age 60 years old;
- Minimum salary of SAR 5,000 – 10,000; and
- Minimum employment period of 6 – 24 months.
Requirements
Similarly, the required documents may vary from bank to bank, too. For example, below is the list of requirements for Alinma Bank’s car financing:
- Copy of national ID/Iqama;
- Valid driver’s license;
- Vehicle quotation;
- Salary certificate;
- Salary confirmation letter (for salary transfer customers);
- Bank statement (for customers without salary transfer); and
- Current account with Alinma Bank.
Meanwhile, here are the required documents for Riyad Bank’s auto leasing program:
- Valid national ID/Iqama;
- Valid driver’s license;
- Salary certificate;
- Completed lease application form;
- Salary transfer letter (for salary transfer customers);
- 3-month bank statement (for customers without salary transfer); and
- Vehicle quotation from dealer approved by Riyad Bank.
Banks Offering Car Loans in Saudi Arabia
At this point, let us take a look at some of the major banks in Saudi Arabia, along with the car loans/auto lease financing programs that they offer:
1. Alinma Bank
Alinma Bank provides car financing up to SAR 2 million, or up to SAR 500,000 per car, with a repayment period of up to 60 months. The minimum salary requirement is SAR 10,000, and salary transfer is required. Borrowers can choose their dealer of choice from the bank’s list of approved dealers.
For more details about this loan, check out the official website of Alinma Bank.
2. Al Rajhi Bank
Al Rajhi Bank’s car lease program (without salary transfer) is offered to those whose minimum salary is SAR 5,000. The repayment period is up to 5 years, and warranty coverage is provided during the leasing period.
For more information about this program, go ahead and see Al Rajhi Bank’s official website.
3. Arab National Bank
Arab National Bank offers car lease financing of up to SAR 500,000 for individuals and SAR 1 million for businesses. The minimum salary requirement is SAR 3,000, with up to 5 years repayment period.
The program is available for Saudi nationals and expats, including ladies. Borrowers can also make their payments through various channels: cash, cheques, ATM, phone banking, and Internet banking.
To know more about this program, please visit the official website of Arab National Bank.
4. Bank Albilad
Customers who are between 18 to 65 years old can apply for Bank Albilad’s auto lease program, which offers financing up to SAR 1,000,000. The financing period is up to 5 years, and customers have the option to get up to 3 cars.
This program is available for both Saudi nationals and expats. It comes with full insurance coverage, early settlement options, and the option to transfer the lease to another customer.
To learn more about Bank Albilad’s auto lease financing, check out the bank’s official website.
5. Bank AlJazira
Customers whose minimum salary is SAR 5,000 can apply for Bank AlJazira’s auto lease program. The lease covers up to SAR 500,000 per car, with a maximum of 3 cars. Meanwhile, lease terms start from 12 months up to 60 months.
This program is offered to Saudi nationals as well as expat residents. Please visit the official website of Bank Al Jazira for more details.
6. Emirates NBD
Emirates NBD’s auto lease program is offered to customers whose minimum salary is SAR 8,000. The lease term can start from 12 up to 60 months. Various options are also given, including: agency repair, personal accident benefit, extended warranty, transfer of lease to a new customer, and many more.
Go ahead and see the official website of Emirates NBD for more information.
7. Riyad Bank
Riyad Bank’s auto lease program provides financing of up to SAR 500,000. It is available for Saudi nationals as well as expat residents. The minimum salary requirement is SAR 5,000, and salary transfer is necessary. Moreover, the maximum lease term is 5 years, and financing of up to 3 vehicles is possible.
Check out the official website of Riyad Bank to know more about this program.
8. Saudi Investment Bank
Saudi Investment Bank’s Car Murabaha Finance enables customers to buy their own dream car. The bank has multiple car dealers across the Kingdom where customers can obtain quotations.
Those who have a minimum salary of SAR 5,000 can apply for this loan; salary transfer is required. The maximum repayment term is 5 years.
Please visit the official website of Saudi Investment Bank to learn more about their Car Murabaha Finance program.
Summary
As you can see, there are many options to choose from if you are planning to buy or lease a car in Saudi Arabia. Whether you are a Saudi National, an expat, a government sector employee, or a private sector employee — you are bound to find a car financing program that meets your needs and preferences.
Meanwhile, if you are a Filipino and you are looking at loan options, check out this article on loans for Filipinos who are based in Saudi Arabia.
