What this Saudi personal loan calculator does
In Saudi Arabia, a personal loan is usually called personal finance. Most banks offer it in a Sharia-compliant form, so the cost is called profit rather than interest. The idea is the same for you as a borrower. You get a lump sum now and pay it back in fixed monthly instalments, usually taken straight from your salary.
Many bank adverts in the Kingdom show a flat profit rate, while the law requires them to also tell you the APR, the annual percentage rate. These two numbers can be very different. This calculator takes whichever one you have and shows the other, so you can compare offers fairly.
If you enter your salary, the tool also checks the SAMA salary deduction cap. This rule decides how big an instalment, and so how big a loan, a bank may give you.
Who can get personal finance in Saudi Arabia?
Banks and licensed finance companies lend to Saudi nationals and to expats. The usual requirements are:
- A national ID for Saudis, or a valid iqama for expats.
- A salary paid into an account at the lending bank. Most personal finance in the Kingdom is tied to a salary transfer.
- A job with an employer the bank accepts, often with a minimum time in service.
- A credit report from SIMAH, the Saudi Credit Bureau, that meets the bank's policy.
- For retirees, a pension paid through the bank.
Each bank sets its own minimum salary and may treat Saudis, expats, government staff and private sector workers differently. Expats often face lower limits or need a longer iqama validity. Always check the bank's eligibility list.
Your gross salary for loan purposes normally includes basic pay and fixed allowances such as housing and transport. To see your take-home pay after social insurance, use our Saudi GOSI Calculator.
SAMA rules for personal loans
The Saudi Central Bank (SAMA) supervises banks and finance companies. Three sets of rules matter most for personal finance: the Responsible Lending Principles for Individual Customers, the Regulations for Consumer Financing, and the Implementing Regulations of the Finance Companies Control Law. SAMA also issues rules on disclosing financing prices. Here is what they say in plain words.
Salary deduction cap: 33.33% or 25%
Monthly repayments that are linked to salary deduction must not be more than 33.33% of your gross salary if you are employed. For retirees the limit is 25% of the pension. This applies at every income level. For example, on a gross salary of SAR 12,000, the most that can be deducted each month for these obligations is SAR 4,000.
Maximum tenure: 60 months
The finance term must not be more than five years, or 60 months, from the date the money is paid out. Real estate finance and credit cards are outside this limit. The calculator therefore stops at 60 months.
Total debt limits by income
The Responsible Lending Principles also set overall limits based on your total monthly income:
- Up to SAR 15,000: non-mortgage obligations up to 45% of income; all obligations including a home loan up to 55%. People with state housing support may go up to 65%.
- Above SAR 15,000 and below SAR 25,000: non-mortgage obligations up to 45%; all obligations up to 65%.
- SAR 25,000 or more: no fixed overall percentage beyond the 33.33% or 25% deduction cap. The lender must still check that you can afford the loan.
SAMA can review and change these ratios from time to time, so check the current figures with your bank.
No fixed maximum amount
Unlike the UAE, Saudi rules do not set a loan ceiling as a multiple of salary. Your maximum depends on the instalment you are allowed, the profit rate and the term. A longer term and a lower rate let you borrow more within the same instalment.
Fee cap
Article 9 of the Regulations for Consumer Financing says all fees, costs and administrative charges must not be more than 1% of the financing amount or SAR 5,000, whichever is lower. The calculator applies this cap automatically. VAT may apply to the fee, so check your offer.
APR disclosure
SAMA's rules on disclosing financing and savings prices require lenders to show the APR, the finance amount, the term and the monthly payment for consumer finance. Banks must publish examples or a calculator, explain the factors that affect the price, and tell you in writing that your own offer may differ. The APR is defined as the rate that makes the present value of your payments equal to the money you actually receive.
Flat profit rate vs APR
A flat rate charges profit on the full original amount for every year of the term, even as you repay it. Total profit is simply amount × flat rate × years.
The APR measures the cost on the reducing balance, the way a normal amortising loan works, and it also includes fees. It is the only fair way to compare two offers.
A flat rate is roughly half of its matching reducing rate. A 3.5% flat rate over five years equals about 6.54% on a reducing basis. Add a 1% fee and the APR goes up to about 6.96%. Use the rate type menu in the calculator to switch between the two.
How to calculate a personal loan instalment in Saudi Arabia
If you have a flat rate
Instalment = (Amount + Total profit) ÷ Months
If you have an APR or reducing rate
Instalment = Amount × r ÷ (1 − (1 + r)^−Months)
Total profit = Instalment × Months − Amount
Fee and total payable
Total payable = Instalment × Months + Admin fee
Salary cap check
= Pension × 25% (retiree)
OK if Instalment + Other salary-linked payments ≤ Maximum deduction
The calculator also shows an approximate APR. It finds the yearly reducing rate at which your instalments repay the amount you actually receive after the fee. Bank figures may differ a little because of day counts and the exact date of the first payment.
Worked examples
All the figures below match the calculator. Type the same inputs to check them.
Example 1: A flat rate offer over five years
Faisal, a government employee, earns SAR 10,000 gross. His bank offers SAR 100,000 at 3.5% flat over 60 months, with a 1% admin fee. He has no other finance.
- Total profit: 100,000 × 3.5% × 5 = SAR 17,500.00
- Monthly instalment: 117,500 ÷ 60 = SAR 1,958.33
- Admin fee: SAR 1,000.00
- Total payable: SAR 118,500.00
- Reducing equivalent: about 6.54%; APR including the fee: about 6.96%
- Salary cap: 33.33% of 10,000 = SAR 3,333.33. His instalment is 19.58% of salary, so it fits.
Example 2: An APR offer that breaks the cap
Rahul is an engineer in Riyadh on SAR 10,000 a month. He asks for SAR 200,000 at 6.8% APR over 60 months with a 1% fee.
- Monthly instalment: SAR 3,941.39
- Total profit: SAR 36,483.69
- Admin fee: SAR 2,000.00
- Total payable: SAR 238,483.69
- Deduction: 39.41% of salary, which is above the 33.33% limit.
At 6.8% over 60 months, an instalment of SAR 3,333.33 supports about SAR 169,100. That is roughly the most Rahul could borrow from this offer.
Example 3: A retiree
Abu Khalid receives a pension of SAR 8,000. He wants the same SAR 100,000 at 3.5% flat over 60 months as in Example 1.
- Monthly instalment: SAR 1,958.33
- Retiree cap: 25% of 8,000 = SAR 2,000.00
- Instalment as share of pension: 24.48%, just inside the cap.
Example 4: The fee cap in action
Nora borrows SAR 600,000. Her bank's standard fee is 1%, which would be SAR 6,000. The SAR 5,000 cap is lower, so the most she can be charged is SAR 5,000. The calculator applies the cap for you.
Example 5: Paying off early
Faisal from Example 1 wants to settle after 24 instalments. Using the 6.54% reducing equivalent, his balance is about SAR 63,860.71. The lender may charge up to the profit for the next three months, worked out on the reducing balance, which is about SAR 1,017.23. He avoids roughly 36 months of remaining profit. The bank's settlement letter gives the exact figure.
Reference tables
Key SAMA limits
| Rule | Limit |
|---|---|
| Salary deduction, employees | 33.33% of gross salary |
| Deduction, retirees | 25% of pension |
| Maximum tenure | 60 months (5 years) |
| Fees and admin charges | 1% of amount or SAR 5,000, whichever is lower |
| Early repayment cost | Up to 3 months of profit on the reducing balance |
| Non-mortgage obligations (income below SAR 25,000) | 45% of total income |
Maximum instalment by salary
| Gross salary | Employee cap (33.33%) | Retiree cap (25%) |
|---|---|---|
| SAR 6,000 | SAR 2,000.00 | SAR 1,500.00 |
| SAR 8,000 | SAR 2,666.67 | SAR 2,000.00 |
| SAR 10,000 | SAR 3,333.33 | SAR 2,500.00 |
| SAR 15,000 | SAR 5,000.00 | SAR 3,750.00 |
| SAR 20,000 | SAR 6,666.67 | SAR 5,000.00 |
Tawarruq and murabaha: how Islamic personal finance works
Almost all bank personal finance in Saudi Arabia is structured to follow Sharia rules. The most common method is tawarruq. It works in four steps:
- The bank buys a commodity, such as metal, from a supplier.
- The bank sells the commodity to you at cost plus an agreed profit, payable in monthly instalments.
- You authorise the bank, or a broker, to sell the commodity in the market for cash.
- The cash goes into your account, and you repay the deferred price in instalments.
The selling price, and so the total profit, is fixed when you sign. It does not rise later if you pay on time. Murabaha is the same cost-plus sale, often used when you want a real item such as a car or goods rather than cash. In both cases, you know the full price at the start.
For the calculator, an Islamic offer works just like a conventional one. Enter the profit rate the bank quotes and choose flat or APR to match the offer.
Early repayment rules
You can pay off the remaining balance at any time. The rules are clear that the lender cannot charge you the profit for the remaining term. It may only ask for:
- A reinvestment cost, capped at the profit for the three months after you repay, worked out on the reducing balance.
- Amounts the lender paid to third parties under the contract that you have not already paid and that cannot be refunded, for the remaining term only.
Many banks describe this as paying the profit of the next three instalments. A January 2026 Argaam report on SAMA's rules for finance companies confirmed the same principle. Always ask for a written settlement quote that shows each part.
Settling early often happens when you leave a job. Your end of service award may cover the balance. Estimate it with our Saudi End of Service Calculator and check your vacation salary as well.
Special cases
Refinancing or top-up
Banks often let you take a new, larger loan that pays off the old one. The new loan must still fit the 33.33% cap and the 60-month limit. A new admin fee may apply, within the same 1% or SAR 5,000 cap.
Changing jobs
Because most personal finance is tied to salary transfer, tell your bank before you change employer. If your salary stops arriving, the bank may treat it as a default.
Expats leaving the Kingdom
Before a final exit visa, settle or agree a plan for all finance. An unpaid balance can be recorded with SIMAH and may lead to legal action.
Your SIMAH credit report
SIMAH, the Saudi Credit Bureau, keeps a record of your loans, cards and payment history. Every bank checks it before approving personal finance, and it also shows the instalments you already pay, which count toward the 33.33% cap. You can request your own report and score from SIMAH online. Late or missed payments stay on the record for some time, so paying on time is the best way to keep future borrowing open. If you see an account you do not recognise, raise it with the lender and SIMAH before you apply.
Finance companies
Licensed finance companies follow SAMA's Finance Companies Control Law and its regulations. Their rates are often higher than banks', but the APR disclosure and early repayment rules still apply.
Common mistakes
- Comparing a flat rate with an APR. Convert first. A flat rate always looks lower.
- Forgetting the admin fee. It raises the APR, especially on shorter terms.
- Assuming the 33.33% is just for this loan. Other salary-linked payments count too.
- Taking the longest term without need. Five years almost always costs more in total profit.
- Not asking for a written early settlement quote. The cap is three months of profit, not the whole remaining profit.
- Missing payments. Late payments are reported to SIMAH and can hurt future borrowing.
Practical tips
- Get offers from at least three banks and compare the APR, not the flat rate.
- Check your SIMAH report before you apply so you can fix errors.
- Leave room under the 33.33% cap in case of a pay cut or new expense.
- Read the contract and key facts form for fees, takaful cover and the early repayment method.
- If you also pay family or dependant fees, budget for them. See our Saudi Expat Levy Calculator.
Where to get official help
First complain to your bank through its official channels and keep the reference number. If the bank does not solve the problem, you can file a complaint with SAMA through its consumer protection channel, SAMA Cares. SAMA's website also publishes the full rules. For your credit record, contact SIMAH.
Frequently asked questions
How much of my salary can go to a personal loan in Saudi Arabia?
Under SAMA's Responsible Lending Principles, monthly repayments taken from your salary cannot be more than 33.33% of your gross salary if you are employed, or 25% of your pension if you are retired.
What is the maximum tenure for a personal loan in Saudi Arabia?
Five years, or 60 months, from the date the money is paid out. Real estate finance and credit cards follow different rules.
Is there a maximum loan amount in Saudi Arabia?
SAMA does not set a fixed riyal ceiling for consumer finance. Instead, it limits the monthly instalment through the salary deduction cap and the 60-month term. Together these decide the largest amount you can get.
What is the difference between a flat profit rate and APR?
A flat rate charges profit on the full amount for the whole term. The APR is the true yearly cost on the reducing balance, including fees. A 3.5% flat rate over five years is about 6.54% on a reducing basis, and higher once fees are added.
How much can a bank charge in fees on a Saudi personal loan?
Article 9 of SAMA's Regulations for Consumer Financing caps all fees, costs and administrative charges at 1% of the financing amount or SAR 5,000, whichever is lower.
Can I repay my Saudi personal loan early?
Yes. You can settle the remaining balance at any time. The lender may not charge profit for the rest of the term. It can only ask for a reinvestment cost of no more than the profit for the next three months, worked out on the reducing balance, plus some non-refundable third-party costs.
Are personal loans in Saudi Arabia Islamic?
Most are offered as Sharia-compliant personal finance, usually through tawarruq. The bank buys a commodity, sells it to you on deferred payment at a profit, and then sells it on your behalf for cash that is paid into your account.
Can expats get a personal loan in Saudi Arabia?
Yes, many banks lend to expats with a valid iqama, a job with an approved employer and a salary transfer. Banks set their own minimum salary and may offer smaller amounts or shorter terms to non-Saudis.
What other debt limits apply besides 33.33%?
If your monthly income is up to SAR 25,000, your non-mortgage obligations should not go above 45% of total monthly income. Total obligations including a home loan are capped at 55% for income up to SAR 15,000 and 65% for income between SAR 15,000 and SAR 25,000.
Does the 33.33% cap include my other loans?
Yes. The cap covers all repayments linked to salary deduction, not just the new loan. If you already pay SAR 1,000 a month on another finance and earn SAR 9,000, only SAR 2,000 is left for a new instalment.
Disclaimer
This calculator and article are general guidance only and are not financial or Sharia advice. Profit rates, fees and eligibility differ between banks and customers. Your contract and the bank's disclosure decide the real figures. Confirm any rule with your bank or SAMA before you sign.
Sources and references
SAMA Responsible Lending Principles for Individual Customers (Articles 15–19); SAMA Regulations for Consumer Financing (Article 9 on fees and Article 14 on maximum term and deduction limits); Implementing Regulations of the Finance Companies Control Law (early repayment); SAMA rules on Disclosure of Interest Rates on Financing and Saving Products (2020). Official pages: SAMA Rulebook – Quantitative Principles of Responsible Lending, SAMA Rulebook – Maximum credit limit and term, SAMA Rulebook – Fees (Article 9) and SAMA Rulebook – Early repayment.