Best Business Loans In Saudi Arabia

The Self-Employment Loan Is The Strongest Commercial Loan In Saudi Arabia 2023

The self-employment loan is the best interest-free personal loan for the unemployed and those with limited income from self-employed and specialized activities so that the salary does not exceed 20,000 riyals in Saudi Arabia.

Get a self-employment loan with a maturity of up to 40 months from the Social Development Bank to finance your business to achieve Fixed income or additional income.Here is everything you need to know about self-employment loans in Saudi Arabia, loan terms, payment method, guarantee conditions, and more.

All You Need To Know About A Self-Employment Loan

The self-employment loan is a real opportunity to generate income by obtaining cash financing to open a project or a limited business for the unemployed or for those with limited income who are practicing the main specialized activities identified by the Social Development Bank and according to a set of terms and conditions that must be met to obtain the loan.Here is a comprehensive guide in which we provide everything you need to know about the best self-employment loan for 2023 in Saudi Arabia, including the conditions of the Social Development Bank (formerly the Credit Bank), categories of beneficiaries of the loan, how to obtain a self-employment loan, payment method, and more.

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Yallacompare is the ideal destination for comparing business and commercial loans from top banks and licensed finance companies in Saudi Arabia, in order to achieve your business aspirations by obtaining cash financing for starting a small or medium-sized business, or filling current gaps. In addition, self-employed individuals who are unemployed or have limited income can also benefit from the available self-employed loans.

Pros

• Compare the strongest commercial loan offers from top banks in Saudi Arabia!
• Get the optimal commercial loan for you with the lowest interest rate!
• Discover the best commercial loans to obtain cash financing without collateral.
• Achieve your business ambitions by obtaining an exclusive loan and establish your freelance business to earn income!
• Commercial or personal loans for all purposes and goals, with competitive interest rates and favorable terms!

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The Best Commercial Loan In Saudi Arabia For The Year 2023

The best commercial loan in Saudi Arabia is a financing product with very competitive terms that are provided by financing agencies approved by banks and financial institutions for all emerging projects, whether small or medium.

Business loans are a common financing solution used by startup companies to secure liquidity to complete stuck procedures in all departments, including filling logistical gaps, securing operating expenses or paying workers’ wages, and more.

Hurry up to get the best commercial loan on easy terms and at very competitive interest rates from the best banks and finance companies in Saudi Arabia!

YallaCompare – Yalla Compare

Yallacompare is an ideal place to compare offers of business and trade loans from the most well-known banks and finance companies accredited in Saudi Arabia in order to achieve your commercial ambitions to obtain cash financing and establish a small or medium business or fill current gaps, in addition to the self-employment loan available to professionals. This loan is also available for the unemployed or people with limited income.

Here are some benefits of using YallaCompare:

• Compare the strongest commercial loan offers for the most famous banks in Saudi Arabia!
• Get the perfect business loan for you at the lowest interest rate!
• Discover the best commercial loans to obtain cash financing without collateral!
• Realize your business ambitions by obtaining an exclusive loan and establish your self-employment business to generate income!
• Commercial or consumer loans for all purposes and objectives, with competitive interest rates and soft terms!

What Is A Self-Employment Loan?

The self-employment loan is an interest-free cash financing product with a maximum value of 120,000 riyals, provided by the Social Development Bank to individuals only who are unemployed Saudi citizens or those with limited income (not exceeding 20 thousand riyals) in order to help them establish or practice a commercial activity (specialized activities) and achieve a stable income and financial independence.

Advantages Of The Self-Employment Loan

The advantages of self-employment loans are:

• The Social Development Bank is the sole lender.
  The Social Development Bank (formerly Credit Bank) is the only financial institution that can provide self-employment loans.
• The self-employment loan is a personal loan with concessional terms.
  A self-employment loan is like a personal loan, but it is subject to the regulations and provisions of the Social Development Bank, not the Central Bank of Saudi Arabia.
• Interest-free cash financing program.
  The self-employment loan is an interest-free personal financing program and you pay back its original value within a maximum of 40 months, in addition to an administrative fee that does not exceed 7,500 riyals.
• Loan for self-employed professionals only.
  The self-employment loan is intended to finance only self-employed professions identified by the Social Development Bank, which include: specialized services activities, participatory transportation, real estate activities, handicrafts, services and maintenance, rural development activities, e-commerce and more.
• The self-employment loan is available to both men and women.
  Any Saudi male or female citizen can apply for a self-employment loan.

Self Employment Loan Terms

The terms of a freelance loan are:

• The self-employment loan is available to Saudi nationals only.
  Self-employment financing is available to Saudi nationals only, men and women.
• The borrower’s generation ranges from 18-65 Hijri years.
  The age of the borrower must be at least 18 years old (at loan maturity) and not more than 65 years old (at maturity date).
• The maturity period does not exceed 40 months.
  The maximum repayment period does not exceed 40 months, so that the repayment of the self-employment loan begins 30 days after the date of transfer of the amount to the customer.
• The unemployed and those with limited income (up to 20,000 riyals).
  The self-employment finance applicant must be unemployed or have limited income, whose salary does not exceed 20,000 riyals.
• The financing maximum does not exceed 120,000 riyals.
  The maximum loan does not exceed 120,000 riyals, while it does not exceed 32,000 riyals for those under 20 years of age.

The applicant’s monthly financial obligations should not exceed 45% of his salary if they are a person with limited income or after achieving income from the project.

• Provide a guarantee to the bank against the loan.
  The applicant must provide sufficient guarantee to the bank in order to obtain approval.
• Existence of a debtor sponsor whose age does not exceed 55 years.
  The financing applicant must state that there is a guarantor, whose age does not exceed 55 years, who works in the government sector, and does not sponsor two other persons.
• Submitting a document/license to practice self-employment.
  The funding applicant must submit a document or license proving that he is practicing self-employment activity.
• Good credit history and no indebtedness to the Social Development Bank.
  The funding applicant must not be in debt to the Social Development Bank, and pass the credit evaluation check.
• Submit all required documents and certificates. 

These include, but are not limited to:

• National identity card.
• Self-employment document or certificate.
• Customer’s national address.

How To Get A Self-Employment Loan

To obtain a self-employment loan, you must visit the Social Development Bank website and then submit the application online.

Make sure that you meet the conditions of the self-employment loan and that you submit all necessary documents and certificates, including obtaining the self-employment document.

What Is The Difference Between A Self-Employment Loan And A Personal Loan?

The self-employment loan is a loan with very easy terms, and unlike personal loans in Saudi Arabia, it is a loan without interest at all. It contributes to the advancement of self-employed people in Saudi Arabia and helps them secure income.

There are many differences between a self-employment loan and a personal loan in Saudi Arabia, some of which are:

• Social Development Bank opposite the Central Bank of Saudi Arabia.
  Self-employment loan is subject to the terms and conditions of the Social Development Bank, while personal loans are subject to the rules and regulations of the Central Bank of Saudi Arabia.
• Interest rate.
  A self-employment loan is a loan without interest at all, meaning that you repay the loan at its original value, while an interest rate is charged on all personal loans.
• Category of beneficiaries.
  The self-employment loan is available to the unemployed or to those with limited income only whose salary does not exceed 20,000 riyals, while the personal loan is available to all citizens and residents in accordance with their financial and credit record, provided that they are in the job.
• Maturity period.
  The maturity period in self-employment loans does not exceed 40 months, compared to 60 months in personal loans.
• Financing value.
  The maximum amount of financing for a self-employment loan is up to 120,000 riyals, while the amount of financing for personal loans is up to 1.5 million riyals and more.
• Warranty and guarantee.
  The applicant for self-employment financing must provide a guarantee to the bank and declare the presence of a guarantor or debtor, while usually no guarantees or bets are required in personal loans, and cash is guaranteed.
• The maximum deduction from the salary.
  The total amount deducted from the customer’s salary should not exceed 45% in a self-employment loan (in the event that he is a low-income person), while in personal loans the percentage is reduced to 33% of the net salary.

Best Interest-Free Personal Loan – Self-Employment Loan

The self-employment loan is the best interest-free personal loan in Saudi Arabia that is available to all unemployed or low-income citizens who are self-employed and earn a salary not exceeding 20,000 riyals.

A personal loan at 0% interest aims to help everyone who has not obtained a job opportunity in the labor market or wants to achieve additional income, provided that his profession is included in the free activities approved by the Social Development Bank.

The Best Freelance Loan 2023 In Saudi Arabia – Frequently Asked Questions