The Saudi Credit Bank will soon offer school bus loans to citizens wishing to make a living by transporting schoolchildren. The bank based its decision on a study which revealed a growing demand for the service. The bank's authorities have urged interested citizens to register for the program on the bank's website. To qualify, an applicant must have a general driving license. He should also have to change his occupation to that of a driver. Applicants also have to provide a letter from the traffic department showing they do not own cabs or vans, Al-Madina Arabic newspaper reported recently. The loans range from SR150,000 to SR300,000 to be refunded in eight years. They are exempted from paying installments in the first three years after receiving the bus. The bank's management adopted the plan when it found that the Ministry of Education transport project had difficulty providing services for all students at various stages of general education across the Kingdom. One of the difficulties facing the ministry's project was that students' parents showed little interest in subscribing to the service. Parents would drop off and pick up their own children. The ministry has spent one billion riyal on the project since 2005. Earlier, the bank made it mandatory for the beneficiaries to have a personal guarantor acceptable to the bank and also made it a condition that the guarantor signs an undertaking to repay the loan if the beneficiary failed to do so. The bank's conditions also made obligatory for the beneficiary to insure the car at his expense, including third party coverage. The monthly installment ranges between SR1,368 and SR1,755.
