Emphasis on Applying the Method for Calculating Government Subsidies Provided by the Ministry of Municipal and Rural Affairs and Housing or the Real Estate Development Fund according to the Responsible Lending Principles for Individual Customers
| No: 44009058 | Date(g): 31/8/2022 | Date(h): 4/2/1444 | Status: In-Force |
Translated Document
Based on the powers vested to SAMA pursuant to The Saudi Central Bank Law issued by Royal Decree No. (M/36) dated 11/04/1442 H , according to the relevant regulations, and to Responsible Lending Principles for Individual Customers, issued pursuant to Circular No. (46538/99) dated 02/09/1439 H, and amended by Circular No. (1/40694) dated 09/09/1439 H.
SAMA wishes to emphasize adherence to the provisions of the principles, including the following:
First: Emphasis on compliance with Article (14/c) of the principles, where Government subsidies, such as those provided through the Citizen Account Program, should not be counted as part of the total monthly income of the consumer, except for government subsidies that are documented and provided by the Ministry of Municipal and Rural Affairs and Housing or the Real Estate Development Fund, which are provided as periodic amounts. Non-financial support or amounts that are not disbursed periodically should not be included in the total monthly income of the consumer.
Second: Emphasizing that the deductible ratio mentioned in Article (15/C) for consumer benefiting from the Ministry of Municipal and Rural Affairs and Housing or the Real Estate Development Fund should be calculated from the total monthly income of the consumer if there are subsidy amounts disbursed to the consumer on a monthly basis.
For your information and action accordingly.