Alinma Bank has announced the launch of its real estate Ijara financing solution with subsequent ownership service, which will make it possible for the bank’s partners to own real estate in an easy, affordable way.
This service is provided free of the administrative fees or charges frequently assessed by other financing institutions upon the conclusion of the contract. Additionally, no co-signing guarantor is required in order for partners to avail themselves of the service. Financing is available in amounts up to SAR 5,000,000, and the repayment period may extend up to 25 years.
The service utilizes the Ijara method of Shariah-compliant financing. Under this method, upon the partner’s request, the bank will purchase real estate (house, apartment, structure or land) and then lease it to the partner for a specific term during which the partner will pay the bank affordable installments. At the conclusion of the Ijara term, the ownership of the real estate will transfer to the partner as per the contract concluded between the two parties.
Speaking about the launch of the service, Mr. Fahad Al-Semari, General Manager of the Retail Banking Group at Alinma Bank, said, "The Bank seeks, through the launch of this service, to provide integrated banking solutions that keep pace with our partners’ needs and meet the growing demand from various segments of society to secure adequate housing for themselves and their families.” He added that the services were “distinguished by their efficiency, transparency and Shariah-compliance, all of which ensure peace of mind for our partners.”
Mr. Al-Semari explained that the bank understands partners’ desires for financing solutions that address their basic needs, the most important of which is securing adequate housing for their families. He added that the service would benefit partners wishing to own property not only for housing purposes, but also for investment purposes, such as the purchase of duplexes or small buildings.
At present, real estate is one of the key growth sectors in the Kingdom and is being driven by increased urbanization and high population growth rates.
Alinma Bank has recently launched a marketing campaign for its official launch to the public under the slogan "Tafa’al," which reflects the nature of the bank’s relationship with its partners as well as the nature of growth, development and achievement in the Kingdom. Alinma Bank provides a wide variety of banking services that meet its partners’ needs.