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What is meant by “Shariah compliant products”?

SHL products have been developed in close cooperation with the Shariah Supervisory Board and have been officially approved as Shariah compliant. The Shariah Board is actively involved in the development and supervision of the Company's products to ensure full compliance with Islamic Shariah principles.

How is the customer considered qualified for SHL financing?

Four factors determine if the client is eligible for financing with SHL: current income, total customer obligations, credit score, and home finance installments.

What should I provide to apply for home financing?

In order to obtain home financing you must provide the following documents:- Proof of monthly salary - letter from the employer.- Bank statements.- Copy of the property deed and building area.- A copy of the national identity papers.- Proof of address - housing and work.

What is the minimum monthly income to get finance?

The minimum monthly income to get finance is 5000 SAR

Can I use additional income to be qualified?

We take into account only the salary of the donor or the income of the property

Does the company accept solidarity to help qualify the applicant?

Yes, any request from the wife, father, son, brother, or sister is considered.

Does SHL finance the purchase of land?


What is the eligible age for financing with SHL?

from 150.000 to 10.000.000 SRA

What is the maximum age allowed to obtain financing from SHL?

The maximum age for obtaining financing is as follows: a. Up to 69 years for individuals qualified for the Pensioner Projection Income Program (PPIP), who receive monthly salaries. Up to 62 years of age if not qualified for PPIP. b. Up to 69-year-old for self-employed pensioners.

What is the maximum duration for financing?

The maximum duration is thirty (30) years and it depends on the age of the client.

How long does it take to request funding?

The process shall take thirty (30) days from the date of receipt of the completed application and fees from the customer, and having to carry out a medical examination if applicable, in a timely manner. The application is not considered complete until SHL has received all the required documents to verify the creditworthiness and reliability, as well as the value of the villa, apartment or land.

What is the largest amount of financing?

If the application is fulfilled it can take five days

Are you required to pay a rent amount in advance?

Yes, the company accepts an amount not less than 15% minimum

How does the company determine property value?

The value of the housing unit is determined by valuation, which is the primary factor determining the ratio of financing to the value of the property. SHL arranges the process of assessing the client And the status of the credit client

Should I be employed to apply?

No, provided that a minimum monthly income is verified.

What is the length of service required in my current job to apply?

After one year for private sector employees and self-employees must be Two years After Start the Activity. After six months for government employees. However, in assessing the application, the total monthly income from all sources is taken into account regardless of the length of service.

Do I have the right to sub-lease the residential unit or the property? If possible, what are the conditions?

The customer does not have the right to rent the residential unit without written approval from the lessor (SHL). These requests will be decided on a case-by-case basis. In such a case, information about the person who will sub-lease the unit is required, as well as a copy of the sub-lease contract.

Can I resell the property?

You can sell the property as long as the full amount of the financing has been paid.

What is the early payment policy for the contract?

Transfer all early repayment requests to any of our offices. Early payment is allowed at any time and the financing fee is exempted and Payment of three installments

What insurance is required for the property and who pays it?

Takaful insurance is required on the property against dangers, God forbid. SHL is paid insurance included in the customer’s monthly payments.

What does insurance cover?

Insurance covers damage caused by fires, accidents and natural disasters.

Who is responsible for routine maintenance?

Since you are renting the property to own, you will be responsible for routine maintenance.

Can the same customer get financed for more than one property?

The customer can obtain more than one property when s/he is eligible and complies with all the conditions and requirements for each housing unit individually, provided that the total funding does not exceed the sum of four million Saudi Riyals.

Is it possible to authorize someone else to pay the installments on my behalf?

The client may not waive his rights or responsibilities to another person, but he may delegate another person to pay on his behalf; however, the obligation of all rights and/or responsibilities still belong to the customer.

Does the credit life insurance cover permanent disability (as this isn’t included in the lease agreement)?

Total permanent disability compensation and benefits due to accident or illness are considered an early form of death compensation and benefits due to accident or illness. The Lessor may, in accordance with its internal regulations and procedures and subject to terms and conditions of the Takaful Insurance Policy, cover the credit life risk and release the tenant from any obligations under the Ijara contract based on the final decision of the Takaful Insurance Company.

What are the procedures in case I want to sell the property during the lease contract? How is the final settlement amount distributed?

The first step in the sale is to identify the potential buyer. Once done, the client must make the following arrangements between SHL and the new buyer: a. SHL receives the sale amount of the property from the new buyer. b. The title deed shall be transferred to the new buyer directly by competent local authorities. c. SHL deducts the Lease Book Value and any other dues the customer owes and then transfers the remaining amount received from the buyer to him.

How can the tenant permanently exit KSA during the contract period?

If the customer intends to leave KSA permanently during the validity of the contract and depending on the time he leaves and his intentions, the case will be processed according to one of the following options: a. Sell the property following the steps described in paragraph 8 above. b. If the client intends to return to the Kingdom again, he can continue to pay the due amounts in accordance with the contract, without any change to the contract with SHL. c. Provide an official power of attorney to another person in KSA to sell the property on his behalf. The customer remains responsible and obligated to pay the due installments on time under the contract until the property is sold. If sold, the case will be processed as described in paragraph 8 above.

What is the law governing foreign ownership of properties in Saudi Arabia?

Properties ownership and investment role for non-Saudis issued under: Royal Decree No. M/15 dated 17/04/1421H Article (2), which gives non-Saudi citizens residing in Saudi Arabia the right to own property for the purpose of private housing only, subject to an approval from Ministry of the Interior. Article 5: Except for the transfer by inheritance, non-Saudis have no right to own properties within the city limits of Mecca and Madina. However, non-Saudi Muslims may rent properties within the city limits of Mecca and Madina for a period not exceeding two years and renewable for similar periods. Internet Source: Source

How are the monthly installments distributed toward profit and ownership?

Monthly installments are not distributed toward profit and ownership in Ijara financing where the original cost of the property is combined with the profit rate to determine the customer’s total liabilities. The total amount (original cost + profit) is divided by the period of financing to determine the monthly rent installments. SHL retains full ownership of the property until the customer has paid all obligations. The ownership of the property will be transferred to the client after full payment of any obligations or when negotiating an early repayment formula.

As a tenant, what are my homeownership rights and obligations?

SHL will grant all rights and benefits to its customers except for some rights mentioned above that require prior approval, such as sublease and property modifications. Customers are obligated to maintain the property. Like many real estate owners, they also have a commitment to pay for utility bills, local services and common service fees when required.

Is there a fine to be imposed in case of customer delays in payment? Is such a fine legitimate?

All customers are expected to pay the amounts due according to the payment schedule. In the event that the customer fails to pay any amounts due under the lease agreement (including rental amounts or maintenance or damage costs), the customer shall pay a delay penalty of three hundred riyals for each late payment. The fine is intended to compensate the lessor for expenses incurred as a result of claim payment. This fine is legitimate and has been approved by the company’s Shariah Board.