APR Disclosure

APR Disclosure - 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
    Car 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
    Car 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
    Finance type Product APR Administrativefees
    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
      • Clarification Example - financing period is 12 months
        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
      • Clarification Example - financing period is more 12 months
        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
      • Clarification Example - financing period is 12 months
        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
      • Clarification Example - financing period is more 12 months
        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