APR Disclosure

Latest Update Date 2021-11-17

Rules for disclosing the prices of financing products

Individuals financing product


The Annual Percentage Rate (APR):

It is the discount rate at which the present value of all 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.

Clarification Example

Asset Type Down payment Finance Amount Maturity in Years APR Monthly Repayment Amount Residual Value
Car 5% 68,940 60 13.63% 1,279 20,945

Clarification Example

Asset Type Down payment Finance Amount Maturity in Years APR Monthly Repayment Amount Residual Value
سيارات 0% 90,330 60 15.35% 1,896 24,726

Clarification Example

Asset Type Down payment Finance Amount Maturity in Years APR Monthly Repayment Amount Residual Value
سيارات 0% 90,100 60 17.34% 1,961 27,386

APR may differ depending on the amount and the maturity period different from above and subject to credit scoring of each customer and the actual cost of the insurance .


Finance Amount:

The contract stipulates the amount of financing you will receive in addition to the period of repayment of the installments, stating their value and the maturity date of these installments. The data also include the cost of obtaining funding in terms of knowing the fixed term cost rate and management fees.


Maturity in Years:

The duration of the contract agreed upon between the parties, which shall indicate the date and expiry of the contract with the parties' with the terms of the contract


Monthly repayment amount:

These payments are recognized in the contract, and the lessee is obliged to pay them on the due dates. The contract shall also include a schedule of repayment installments, in which the value of the asset's rent and the value of the right of ownership shall be shown separately, provided that the premium for any period shall not be less than the principal's rent for that period in the contract.



Residual Value:

The last payment is usually 0 % to 35% of the car price which you decide to pay at the end of the lease. It makes the monthly rentals that you pay less, but you have to be ready to make a large payment at the end of the lease.


Corporate finance products

-Types of financing:

Type of financing Product APR Administrative fees
Ijara / Murabaha Less than 12 months old 6.5% - 8.5% 1%
Ijara / Murabaha More than 12 months 7.5% - 9.5% 1%

- Example of vehicle financing:

* Murabaha

  1. The financing period is 12 months

  2. Clarification Example

    Finance type Asset Type Finance Amount Maturity in years Profit margin APR Monthly Repayment Amount
    Murabaha Car 51,696 S.R 12 6.5% 12.45% 4,589 S.R
    Murabaha Car 51,696 S.R 12 7.5% 14.44% 4,632 S.R
    Murabaha Car 51,696 S.R 12 8.5% 16.46% 4,675 S.R
  3. The financing period is more than 12 months

  4. Clarification Example

    Finance type Asset Type Finance Amount Maturity in years Profit margin APR Monthly Repayment Amount
    Murabaha Car 51,696 S.R 36 7.5% 14.58% 1,760 S.R
    Murabaha Car 51,696 S.R 36 8.5% 14.58% 1,803 S.R
    Murabaha Car 51,696 S.R 36 9.5% 14.58% 1,846 S.R

    * Ijara

    1. The financing period is 12 months

    2. Clarification Example

      Finance type Asset Type Finance Amount Maturity in years Profit margin APR Monthly Repayment Amount
      Ijara Car 51,696 S.R 12 6.5% 20.17% 4,780 S.R
      Ijara Car 51,696 S.R 12 7.5% 22.24% 4,823 S.R
      Ijara Car 51,696 S.R 12 8.5% 24.33% 4,866 S.R
    3. The financing period is more than 12 months

    4. Clarification Example

      Finance type Asset Type Finance Amount Maturity in years Profit margin APR Monthly Repayment Amount
      Ijara Car 51,696 S.R 36 7.5% 21.77% 1,951 S.R
      Ijara Car 51,696 S.R 36 8.5% 23.69% 1,994 S.R
      Ijara Car 51,696 S.R 36 9.5% 25.63% 2,037 S.R

      *APR may differ depending on the amount and the maturity period different from above and subject to credit scoring of each customer.

Car Finance in Saudi Arabia

Car Finance in Saudi Arabia