Organization : Ministry of Finance
Facility : Rules for Health Projects Loan
Country : Saudi Arabia
Website : https://www.mof.gov.sa/en/Pages/default.aspx
Terms & Conditions : https://www.statusin.org/uploads/41776-HealthLoans.docx
MOF Health Projects Loan Rules
Follow the below Procedures to Obtain a Loan,
Related : MOF Procedures for Lending Educational & Training Loan Saudi Arabia : www.statusin.org/41766.html
Lending Scope
The following health projects are funded :
1. Hospitals.
2. General Medical Complexes
3. One Day Surgery Centers
4. Specialized Medical Complexes
Lending Regulations
Saudi natural and legal persons are eligible to borrow with availability of the following conditions :
1. Obtaining a valid license from the Ministry of Health.
2. The project that is be loaned shall have all the general and specific conditions and specifications specified by the competent authorities and the availability of public services at the site.
3. If the project is to be built on a land owned by the investor, the land and buildings of the project shall be held in pledge or to provide a bank guarantee equal to the value of the loan provided that the bank guarantee shall be valid until the loan is fulfilled and its value is reduced as the installments are repaid.
4. If the project is to be built on a land not owned by the investor, the mortgage shall be for another land and shall exceed the estimated value of the loan or to provide a valid bank guarantee equal to the value of the loan until the loan is fulfilled and its value is reduced as installments are repaid.
Required Information & Documents
The following Information and documents shall be submitted to the Ministry :
1. To fill out the application forms of the loan.
2. A copy of the national identity card of the investor (investors). If he is a legal person it should be attached as it is extracted from the commercial register, authorization from responsible person to borrow on his behalf and a copy of the establishment contract provided that the duration of the establishment is not less than the repayment period of the loan and the grace period.
3. Documents proving the solvency of the investor and his ability to complete and operate the project.
4. Feasibility study of the project in Arabic prepared and approved by a licensed office.
Loan Amount
The loan is allocated to finance buildings, installations, equipment, medical equipment and furniture, the allocation of equipment shall not exceed(50%) of the loan, and the maximum limit of the loan including buildings, equipment and medical supplies and furniture shall equal to (50%) of the estimated cost approved by this Ministry for the whole project and should not exceed the following limits
a – SR 200 million to Hospital project.
b – SR 80 million to finance a general medical complex project.
c – SR 80 million to finance the one day surgery center.
d – SR 50 million to finance a specialized medical complex project.
Disbursement of the Loan
(A) The amount allocated for the buildings shall be disbursed in ten installments at the rate of 10% for each payment. These payments shall be disbursed based on a review report (on site visit) by a committee formed by this Ministry after the investor submits the report of the consultant supervising the project.
The Ministry shall have the right to suspend payment of the loan if it is proved that the investor has breached the obligations of the contract.
(B) the allocated amount for facilities, equipment and furniture shall be disbursed as follows :
** (25%) of the value of the allocated amount after the submission of documents and supporting documents for supplying them ( contract, bill, cash receipts from the supplier or the source, the statement of import, documentary credit ) to be sealed by the investor as well as the institution or the company and must have been completed (60%) or more of the construction and architectural works of the project buildings.