JEDDAH – The Real Estate Development Fund (REDF) and National Commercial Bank (NCB) signed a memorandum of understanding (MoU) to start the trial implementation of the “Real Estate Additional Loan Program” of the Saudi banks and the real estate financing and development institutions to provide those who got loan approval from REDF with additional loans, making it the first bank to complete the procedures of the first “additional loan”. The REDF-NCB MoU to start the trial implementation of the program in all NCB branches in big main cities was signed in the presence of Mohammed Al-Abdani, REDF General Manager, and Zahid Hummusani, NCB Executive Vice President, Head, Consumer Finance Sector. NCB has already implemented the “Real Estate Additional Loan” product by completing the first transaction of Hani Al Muqham to be the first Saudi citizen who gets an additional loan at an amount of SR1.3 million, in addition to REDF's loan to make real his dream of possessing a house of life. Zahid Hummusani handed the check over to the customer during the agreement signing ceremony. Al Abdani said “it is a joint financing program between the REDF and the banks or financing institutions. The amount of REDF's loan will be added to the additional loan amount from the financing institution, so that the Saudi citizen can purchase a property with a price higher than the REDF's loan or purchase a piece of land then can benefit from REDF's loan to build a house on it. In addition, those who possess a piece of land and wants to start building before getting the REDF's approval, or those who want to buy a structured house with the intention of early settlement upon getting the REDF's approval, can also benefit from this additional loan.” He added “REDF will not have any restraints on the amount that the citizen will take from the bank, confirming that these contracts subject to the Real Estate and Financing Regulations, and this will be by mutual agreement with the banks. We agreed with the Ministry of Justice to facilitate the consolidated mortgage procedures and the land. This will be under the name of the financial institution, not the borrower. This way, the citizen will benefit from this, and at the same time we facilitate his loan from the financial institution or and REDF.” Al Abdani said the launching of the “Additional Financing Program” will largely contribute in solving the problem of housing and acquisition of lands. It will also help increase the supply, as when the citizens purchase the units, this will reduce the property prices after sometime. This can be one of the good financing alternatives.” Hummusani said: “The Additional Loan Program will contribute in solving the problem of housing in the Kingdom, as the citizens who got the approval for loan but cannot put to use due to their financial status will benefit from the program. It will enable them to purchase houses or lands through financing loans, and then they can build the house through REDF's loan.” — SG
