The following terms and phrases, where used in these Rules, shall have the corresponding meanings unless the context requires otherwise:

SAMA: The Saudi Central Bank.

Rules: Rules Governing the Calculation of the Annual Percentage Rate (APR).

Finance Providers: Banks, and Finance Companies Licensed to engage in retail lending.

Borrower: a person receiving finance.

Financing Agreement: an agreement whereby financing is granted for the activities listed in the Laws and Regulations.

Amount of Finance: the ceiling or the total amounts made available to the borrower under a finance agreement.

Annual Percentage Rate (APR): The discount rate at which the present value of 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.

Total Amount Payable by the Borrower: the sum of principal loan amount and the total cost of finance.

Total Cost of Finance: All the costs to be paid by the borrower under a financing agreement other than the amount of Finance, including term cost, fees, commissions, administrative services fees, insurance, and any charges required to obtain finance excluding any expenses the borrower can avoid such as costs or fees payable by the borrower due to his breach of any of his obligations contained in the financing agreement.