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Loan Declaration Form for Saudi Arabia

Loan Declaration Form Template for Saudi Arabia

A comprehensive declaration document used in Saudi Arabia for loan applications and processing, designed to comply with both SAMA regulations and Islamic Sharia principles. This form serves as an official statement of the borrower's financial position, loan purpose, and ability to repay, while incorporating necessary declarations regarding Sharia compliance and source of funds. The document includes mandatory disclosures required by Saudi Arabian banking regulations and accommodates both personal and business loan scenarios, with specific provisions for various types of financing structures permitted under Islamic banking principles.

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What is a Loan Declaration Form?

The Loan Declaration Form is a crucial document in Saudi Arabia's Islamic banking system, designed to facilitate compliant lending practices while protecting both lenders and borrowers. This document is required when individuals or businesses seek financing from Saudi financial institutions, serving as a formal declaration of the borrower's financial status, intentions, and ability to repay. It must adhere to strict Sharia principles that prohibit conventional interest-based lending, instead incorporating Islamic financing structures. The form is typically used at the pre-approval stage of a financing application and includes comprehensive declarations about the borrower's existing financial obligations, source of repayment funds, and the intended use of the financing. It plays a vital role in the credit assessment process and forms part of the official loan documentation required by Saudi Arabian Monetary Authority (SAMA) regulations.

What sections should be included in a Loan Declaration Form?

1. Declaration Header: Date, reference number, and type of loan declaration

2. Declarant Information: Full details of the person/entity making the declaration including name, ID/CR number, contact information, and address

3. Loan Details: Specific information about the loan including amount, purpose, and terms of financing in compliance with Sharia principles

4. Source of Funds Declaration: Declaration regarding the source of funds for loan repayment and confirmation of legitimate income sources

5. Financial Obligations: Statement of existing financial obligations and confirmation of ability to repay

6. Sharia Compliance Declaration: Declaration that the loan purpose and structure comply with Islamic principles

7. Truth and Accuracy Statement: Declaration that all information provided is true, accurate, and complete

8. Acknowledgment of Terms: Confirmation of understanding all terms and conditions of the loan

9. Signature Block: Space for signature, date, and official stamps if required

What sections are optional to include in a Loan Declaration Form?

1. Guarantor Information: Required when the loan includes a guarantor - includes guarantor's personal details and declarations

2. Business Details: Required for business loans - includes company information, commercial registration details, and business financial declarations

3. Collateral Declaration: Required when the loan is secured - details of assets provided as security

4. Foreign Income Declaration: Required when repayment includes foreign source income - details of international income sources

5. Power of Attorney: Required when declaration is made by an authorized representative - includes representative's details and authority confirmation

What schedules should be included in a Loan Declaration Form?

1. Schedule A - Supporting Documents: List of all required supporting documents attached to the declaration

2. Schedule B - Income Verification: Details of income sources and verification documents

3. Schedule C - Asset Statement: List of declared assets and their current market values when relevant

4. Appendix 1 - Terms and Conditions: Standard terms and conditions applicable to the loan

5. Appendix 2 - Fee Schedule: Breakdown of all applicable fees and charges in compliance with Sharia principles

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Saudi Arabia

Document Type

Declaration Form

Cost

Free to use

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