Talaat Hafeth, Director of Bank Media and Awareness, said banks will begin implementing a competitive interest on loans as of September 16, according to The Peninsula Times. Hafeth added that the first step is to add transparency for loan applicants but its application may still differ from bank to bank.
He indicated that the equity banking ratio calculates the average annual commission on installments and the interest rate is not calculated on the loan in total which makes it easier for applicants and make it easier for them to compare between the different banks in the Kingdom.
“No additional costs will be imposed except in two cases, if investment return, which is operational in banks, and in some cases the bank bears some of the costs, but updated regulations defined three maximum fees with their returns. The second case if there were extra costs and fees that can be proven and documented by banks, these rules will serve the client more strongly if he pays up early,” Hafeth.