1. A Financing Contract or Guarantee Agreement must be in the form of-
   1. a written contract document signed by the Borrower or Guarantor and the Creditor; or
   2. a written contract document signed by the Creditor and constituting an offer to the Borrower that is accepted in writing by the Borrower.
2. All Financing Contracts, application forms, Guarantee Agreements, repayment schedules, Borrower acknowledgement letter and other documentation related to Consumer Financing must be in Arabic and if the Borrower requests that documentation be prepared in English, the documentation shall be prepared in both languages. The Creditor must provide copies thereof to the Borrower. In the event of a divergence between the Arabic and the English text of any such document, the Arabic text prevails.
3. Each contracting party must receive a copy of the Financing Contract or Guarantee Agreement (as the case may be).

Any amendment (including any addition to) of a Financing Contract by the Creditor after it has been signed by the Borrower is invalid unless the Borrower has agreed in writing.

If a Financing Contract or Guarantee Agreement needed to be signed by the Borrower or Guarantor and returned to the Creditor, the Creditor must give each of the Borrower or Guarantor, as applicable, a signed copy they may keep, not later than 10 Calendar Days after the Financing Contract or Guarantee Agreement has been entered into.

1. The APR must include all mandatory charges or costs under a Consumer Financing as shown in the relevant advertising notices or materials.
2. The Financing Contract must stipulate the use of the declining balance method in distributing the Term Cost over the maturity period, which means that the Term Cost is allocated pro-rata to installments based on the remaining balance of the Amount of Financing at the beginning of the period for which an installment is due.
3. The Term Cost is fixed.

All fees, costs and administrative services charges to be recovered from the Borrower by the Creditor must not exceed the equivalent of (1%) of the Amount of Financing or (5,000) five thousand Saudi riyals, whichever is lower.

1. The Borrower may, by giving written notice to the Creditor within 10 Calendar Days from the date of execution of a Financing Contract, terminate the Financing Contract, unless
   1. Draw-down of any part of the Amount of Financing has occurred; or
   2. A credit card or other means of obtaining Financing provided to the Borrower by the Creditor has been used to acquire goods or services for which Financing is to be advanced under the Financing Contract.
2. In the event of termination under Article 10(1), the Creditor may not charge or claim any Term Cost and or fees from the Borrower unless the conditions under Article 10(1)(a) or (b) above have been met.

1. A Creditor must accept any payment under a Financing Contract before its due date as partial payment if it is equivalent to one full installment or multiples thereof.
2. A Creditor must credit each payment made under a Financing Contract to the Borrower's account promptly after receipt of such payment.
3. The Borrower may prepay, at any time, the remaining Amount of Financing without incurring any Term Cost for the remaining period. The Creditor is entitled to compensation from the Borrower for the following:
   1. The cost of re-investment, which may not exceed the Term Cost for the three months following the payment, calculated on the basis of a declining balance; and
   2. The expenses the Creditor pays to a third party as a consequence of the Financing Contract for the remaining period of the Consumer Financing if such expenses are unrecoverable, and provided that such expenses are properly recorded in the Borrower's Financing file.
4. The Creditor must notify the Borrower in writing of all such fees payable by the Borrower as referenced under Art. 11(3)(a)and (b) above. The Creditor must give that notification by Guaranteed Communication Means within 10 Business Days after the first to occur of:
   1. receipt by the Creditor of a notice from the Borrower of the intended prepayment; or
   2. receipt by the Creditor of the prepayment,

1. Creditors must quickly facilitate the transfer of balance(s) to other Creditors in the Consumer Financing accounts of their Borrowers. Creditors must not unreasonably withhold their consent to a balance transfer request they receive.
2. Creditors may not unreasonably withhold the issuance of a balance statement or certificate of outstanding liabilities requested by the Borrower; these must be issued within 7 Business Days from the date of request.

1. If the Creditor assigns rights under a Financing Contract or the Financing Contract itself to a third party or issues securities against rights under the Financing Contract, the Borrower may use against the assignee any defense that would have been available to him against the original Creditor.
2. The Creditor must receive a no-objection letter from SAMA before he can assign a Consumer Financing or a portfolio of Consumer Financings to another party.

1. Before granting a new Consumer Financing or increasing the limit of any Consumer Financing and without prejudice to the requirements of any applicable law or regulation, a Creditor must ensure that the total monthly Repayments or Deductions recovered from a Borrower under his Consumer Financing obligations to all Creditors do not exceed 33.33% of the Borrower's Gross Salary during the period in which those Repayments or Deductions are made. For retired Borrowers, the deduction limit is 25% of their monthly pension.
2. The Creditor must first obtain the Borrower's prior approval and then obtain and examine the credit record of the Borrower from one or more of the Licensed Credit Bureaus, to confirm the Borrower's compliance with the requirement under Article 14(1), his solvency, repayment capacity and credit conduct. The confirmation of such prior approval by the Borrower must be documented in the Borrower's Financing file.
3. The Creditor must, upon the approval of the Borrower, register the Borrower's credit information with one or more of the Licensed Credit Bureaus in accordance with the relevant laws, regulations and instructions. Such information shall be updated throughout the period of dealing with the Borrower.
4. The Creditor must decline a Financing request if he does not obtain the approval of the Borrower as referred to in Article 14(2) and 14(3) above.
5. Creditors must ensure that the maximum Term to Maturity of a Consumer Financing does not exceed 5 years from the date of initial disbursement.
6. *In the event of a Change in Circumstance of the Borrower, Creditors may reschedule the repayment terms of the Consumer Financing (provided no new Financing is being granted and without any change to the Term Cost under the original Financing Contract) in accordance their credit policies. Creditors must provide SAMA with a half-yearly report of all Consumer Financings that have been rescheduled.
7. In calculating the maximum deductions of one third (33.33%) for Borrowers and one fourth (25%) for pensioners, Creditors must include all Consumer Financing Repayments or Deductions, including the minimum monthly payment required for all credit cards issued to the Borrower.

*Article 14(6) has been amended in accordance to Circular No (381000095088) dated 10/09/1438H. The amended article is currently available only in Arabic.