FAQs
Is there any management fee? The management fee is 1% of the financing amount with cap of  5,000.
How the profit margin is calculated?Here is an example of how the profit margin is calculated:
| Self-build Financing | | | Real Estate value | 500,000 | | Finance amount | 90% of real estate value | | Type of profit margin (Fixed or Variable) | Fixed Rate | | APR | 6.70 % | Management fees
| Management fees is 1% of the Financing Amount with Cap. of 5,000 | | Finance duration | 25 years | Type of installments
| Funding principal and profit
| Finance Amount
| 450,000.00
| | Monthly installment | 3,093.75
| | Early settlement | The value of the remaining asset with an additional 3 months earnings
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Are there any administrative fees?Yes, the administrative fees are 1% of the financing amount, not exceeding 5,000
How is the financing amount calculated in the Self-Construction product?The customer is granted financing based on the credit limit, not exceeding 90% of the expected property value after completion (construction cost + land value).
Construction cost = (Average construction cost per square meter × building area)
How is the profit margin calculated?Through the declining balance mechanism, the annual profit is distributed based on the financing amount into monthly installments, calculated on the remaining principal balance. Can a finance be obtained if the customer is a fixed duration residency holder?YesIs there a specific nationality to which grants are limited?There is no specific nationality to which grants are limited
Does the financing include commercial properties?The financing is limited to residential or mixed-use (residential-commercial) properties, depending on the product type
How the prodect or serviesc for for Residents ? • Customer visits one of Al Bilad Bank's sales channels (branches, direct sales, tele sales)• The customer applies to purchase the property• The order is applied through the system• The application will be analyzed based on the said terms and conditions.• If the application is approved, the necessary documents will be signed by the client.
Example 1 – Self-Construction Financing
Land area: 300 m²Land value: 200,000 Building area: 350 m²Average construction cost per m²: 2,000
Construction cost: 700,000 Property value after completion: 900,000 Financing-to-value ratio: 90%Financing amount: 810,000 Profit margin rate: FixedAnnual Percentage Rate (APR): 6.63%Financing term: 30 yearsInstallment type: Principal and profitMonthly installment: 5,044.5 Early settlement: Remaining principal amount + 3 additional months' profit
Disbursement mechanism:Installment | Installment Amount
| Percentage of Financing Value | 1 | 202,500 | 25% | 2 | 162,000 | 20% | 3 | 162,000 | 20% | 4 | 243,000 | 30% | 5 | 40,500 | 5%
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Example 2 – Self-Construction Financing
Land area: 250 m²Land value: 300,000 Building area: 300 m²Average construction cost per m²: 2,500 Construction cost: 625,000 Property value after completion: 925,000Financing-to-value ratio: 90%Financing amount: 832,500Profit margin rate: FixedAnnual Percentage Rate (APR): 6.63%Financing term: 30 yearsInstallment type: Principal and profitMonthly installment: 5,184.6
Early settlement: Remaining principal amount + 3 additional months' profit
Disbursement mechanism:Installment | Installment Amount
| Percentage of Financing Value | 1 | 208,125 | 25% | 2 | 166,500 | 20% | 3 | 166,500 | 20% | 4 | 249,750 | 30% | 5 | 41,625 | 5% |
Example 3 – Self-Construction Financing
Land area: 450 m²Land value: 500,000 Building area: 400 m²Average construction cost per m²: 2,400 Construction cost: 960,000 Property value after completion: 1,460,000 Financing-to-value ratio: 90%Financing amount: 1,314,000 Profit margin rate: FixedAnnual Percentage Rate (APR): 6.60%Financing term: 30 yearsInstallment type: Principal and profitMonthly installment: 8,183.3
Early settlement: Remaining principal amount + 3 additional months' profitDisbursement mechanism:
Installment | Installment Amount
| Percentage of Financing Value | 1 | 328,500 | 25% | 2 | 262,800 | 20% | 3 | 262,800
| 20% | 4 | 394,200 | 30% | 5 | 65,700 | 5%
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*Terms and conditions applyThe annual percentage rate varies based on the amount and maturity period and Subjected to the customer's credit history
Example for Residents
Example 1: Finance amount 1 million 
1,000,000
| Asset Price | 300,000
| Downpayment (30% of the asset price) | | Fixed | Profit rate type | | 6.25% | APR | | 25 Years | Tenor | | Principle and Profit | Installment type | 700,000
| Finance amount | 5,040.00
| Monthly installment
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Example 2: Finance amount 800,000
800,000
| Asset Price | 240,000
| Downpayment (30% of the asset price) | | Fixed | Profit rate type | | 6.25% | APR | | 25 Years | Tenor | | Principle and Profit | Installment type | 560,000
| Finance amount | 4,032.00
| Monthly installment
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Example 3: Finance amount 2 million2,000,000 | Asset Price | 600,000
| Downpayment (30% of the asset price) | Fixed | Profit rate type | 6.25% | APR | 25 Years | Tenor | Principle and Profit | Installment type | 1,400,000
| Finance amount | 10,080.00
| Monthly installment
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Risk DisclaimerYou must review and be aware of the materials used in constructing the house and obtain their warranties, if any.
It is important for the customer to make payments on time, as the credit record will be negatively affected in case of delay or default in payment
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