Consumer loans in Saudi Arabia increased in 2018 for the tenth consecutive year, as they had declined in 2008, and then continued the annual rises until the end of last year.
Personal consumer loans in the Kingdom recorded at the end of last year, the highest levels, to reach about 339 billion riyals, about 2.6%, at a value of 8.5 billion riyals, compared to 330.5 billion riyals at the end of 2017.
The rise in consumer loans during 2018 came mainly during the third quarter, during which it increased by 12.1 billion riyals from the previous quarter, as it is the highest in two and a half years, before applying the principles of responsible financing to individuals.
Consumer loans include eight main divisions: loans for restoration, furnishing and improvement of real estate, for the purchase of cars and personal transport, purchase of furniture and durable goods, education, health care, credit card loans, in addition to other consumer loans.
By the end of 2018, loans for the purpose of restoring, furnishing and improving real estate accounted for about 8.3% of the total consumer loans in Saudi Arabia, amounting to 28.1 billion riyals, according to Al-Eqtisadiah newspaper.
The loans for cars and personal transport represented 5%, with a value of approximately 16.8 billion riyals. Loans for the purchase of furniture and durable goods represented about 3.7% of consumer loans, at a value of 12.5 billion riyals.
Education loans made about 1% of consumer loans, amounting to 3.5 billion riyals. Also, health-care loans accounted for 0.2% of consumer loans, at a value of 703 million riyals.
The loans for tourism and travel accounted for 0.02% at a value of 484 million riyals. Credit card loans represented about 4.5% of consumer loans, amounting to approximately 15.3 billion riyals.
While the lion’s share was to cover other consumer loans with a 77.2% stake, at a value of 261.6 billion riyals. SAMA began implementing the principles of responsible financing for individuals on August 12th.
According to Sama, these principles aim to encourage responsible financing that meets the actual needs of customers, especially those related to access to housing and assets rather than consumer purposes, and to enhance financial inclusion by providing appropriate financing for all groups of society and taking into account the percentage of tolerance within the scope of the customer Hold it.
