The Central Bank places significant importance on enhancing the protection of the rights of beneficiaries of financing products and promoting transparency and disclosure principles. This is achieved through the application of technical standards and international best practices aimed at improving transparency, disclosure, and fairness in transactions within the sector. Early repayment is considered a right for beneficiaries of various financing products. Therefore, the Central Bank has mandated financing providers (banks/financing companies) to use a unified method for calculating the early repayment amount for financing contracts with monthly payments, such as personal financing, vehicle financing through leasing or other means, and real estate financing, to enable beneficiaries to understand their rights.

This guide has been prepared to provide a simplified explanation of the early repayment amount and the method for calculating it, based on the provisions of Article (82) and (84) of the Executive Regulations for the Financial Companies Control System issued in the month of Rabi' al-Thani 1434H (February 2013), Article (9) and (11) of the Executive Regulations for the Leasing System issued in the month of Rabi' al-Thani 1434H (February 2013), and Article (11) of the first update to the Consumer Financing Regulations issued in the month of Ramadan 1431H (July 2014).