mof.gov.sa Procedures for Lending Educational & Training Loan Saudi Arabia

Organization : Ministry of Finance
Facility : Procedures for Lending Educational & Training Private Project
Country : Saudi Arabia
Website : https://www.mof.gov.sa/en/Pages/default.aspx
Terms & Conditions : https://www.statusin.org/uploads/41766-Educational.docx

MOF Procedures for Lending Educational & Training Loan

Follow the below Rules and Procedures Related for Lending Educational and Training Private Projects,

Related : Ministry of Finance Rules for Hotel Projects Loan Saudi Arabia : www.statusin.org/41755.html

Lending Scope

** Universities and colleges
** Educational complexes (schools and kindergarten) :
The educational complex is intended to consist of two phases or more in order to accommodate (1000) students or more and for classes, more than thirty classes and include a number of laboratories, a library and a number of multi-purpose halls.
** Specialized training institutes and centers

Requirements For Obtaining a Loan

Natural & legal persons are qualified to borrow when the following conditions are met :
** Obtaining a valid license from the competent authority.
** The project which is to be loaned must meet all the general and specific conditions and specifications specified by the competent authorities.
** Approval of the competent authority, for the project site and availability of public services in the project site.

** If the project is to be built on a land owned by the investor, the land and buildings of the project will be held in pledge or a bank guarantee shall be provided equal to the value of the loan provided that the bank guarantee is valid until the loan is fulfilled and its value is reduced as the installments are paid .

** If the project is to be built on a land not owned by the investor, the mortgage must be on another land which its value shall be equal to its estimated value of the loan or offer a bank guarantee equal to the loan amount.

Required Information & Documents

** To fill out the application forms of the loan.
** A copy of the national identity card of the investor. If he is a legal person the I.D shall be attached as it is extracted from the Commercial Register, authorization from responsible person to borrow on his behalf and a copy of the Articles of Association, provided that the duration of the establishment shall not be less than the loan repayment period and grace period.

** A copy of the documents that prove the solvency of the investor and his ability to complete and operate the project.
** Economic feasibility study for the project in Arabic prepared and approved by a certified office.

** A copy of the title deed of the land on which the project will be built or the lease if the land of the project is leased. The lease period shall not be less than twenty years and shall be accompanied by a map of the site

Loan Amount

The loan is allocated to finance buildings, facilities, furniture and buses of the project provided that the allocation for furniture and fittings do not exceed the following percentages :
** Ratio of (15%) of the total cost of buildings and facilities for educational complexes, schools and institutes and training centers projects.
** Ratio of (20%) for administrative and humanitarian faculties.
** Ratio of (30%) for the projects of applied scientific colleges.
** Ratio of (40% (for health colleges projects.

Loan Implementation Requirements

After signing the contract, the investor is obliged to :
** Submit a copy of the agreement with the project implementation contractor, and an agreement with the design office to oversee the implementation of the project .
** Open in a local bank, an independent account in the name of the project in which he deposits the proceeds of the loan that will be paid to implement the project.

** Assign a certified Saudi accountant to audit the project accounts.
** Submit to the Ministry periodic reports on the progress of the project and what has been accomplished every six months throughout the project implementation period.