New SAMA Rules for Credit Cards and Loans in Saudi Arabia – What Consumers Need to Know



Saudi Arabia's financial landscape is evolving once again with new regulations rolled out by the Saudi Central Bank (SAMA). These updated rules, effective May 28, 2025, aim to bring more transparency, fairness, and consumer protection to credit card usage and personal financing across the Kingdom. Here's what you need to know if you're using a credit card or thinking of applying for a personal loan in Saudi Arabia.

🔹 Why These Changes Matter

Over the years, many consumers in the Kingdom have found themselves facing hidden fees, unclear terms, and limited options when it comes to financial services. The latest regulations aim to:

  • Improve transparency in terms and conditions

  • Introduce clearer billing and payment rules

  • Offer better choices in interest rates and service fees

  • Protect borrowers from unfair lending practices

🔹 Key Highlights of the New SAMA Rules

✅ 1. Transparent Credit Card Contracts

All credit card providers are now required to display full terms and conditions before a customer signs up. This includes:

  • Interest rates (annual and monthly)

  • Hidden fees, if any

  • Payment due dates

  • Credit limit and penalties for late payments

Consumers can now make better-informed decisions when choosing a credit card.

✅ 2. Flexible Interest Rate Options

Instead of being locked into a fixed interest rate, banks and financial institutions must now offer more than one interest rate option. This encourages competition and allows users to select a plan that fits their budget and repayment ability.

✅ 3. Free Grace Period for Credit Cards

The grace period on purchases has been standardized across all providers. If a user pays their full balance within this period, they won’t be charged any interest — a move that supports responsible card use.

✅ 4. Clear Breakdown of Fees

Whether it’s a cash advance fee, late fee, or annual membership charge, all costs must now be clearly mentioned in a breakdown before the card is issued. This prevents surprises on the billing statement.

✅ 5. Improved Loan Terms and Transparency

For personal finance products like consumer loans:

  • Lenders must offer detailed amortization schedules showing how payments are split between principal and interest.

  • Borrowers must be informed how much of their salary will go toward repayment and for how long.

✅ 6. No More Surprise Withdrawals

In the past, some borrowers reported automatic salary deductions without prior notice. Under the new rules, advance notification and consent are mandatory before any such transaction occurs.

✅ 7. Salary-to-Debt Ratio Enforcement

Banks must now verify that a borrower’s debt does not exceed 33% of their monthly salary for regular loans, and up to 45% for home financing. This ensures that borrowers don’t take on more than they can afford.

✅ 8. Stricter Rules for Early Settlement

If a borrower wants to repay a loan earlier than scheduled, banks:

  • Must calculate the early settlement amount transparently

  • Cannot add hidden charges beyond a reasonable cap

This protects consumers who wish to close their debts sooner.

✅ 9. Easier Complaints Process

All financial institutions are now obligated to respond to customer complaints within a fixed timeframe, and SAMA will be monitoring them more closely.

🏦 How Will This Affect You?

These rules will empower consumers across Saudi Arabia with more control over their financial decisions. Whether you're a newcomer managing your first salary or a long-time resident looking to consolidate loans, these changes offer better protection and more clarity.

🛡️ Smart Tips for Using Credit Cards in Saudi Arabia

  • Always read the full contract before signing.

  • Pay your bill in full within the grace period to avoid interest.

  • Track your spending with mobile banking apps.

  • If you feel your bank is violating the rules, you can report them through SAMA’s consumer portal.

🔗 Helpful Internal Blog Links:

📌 Conclusion

These new SAMA rules mark a significant step toward a more transparent, consumer-friendly financial system in Saudi Arabia. Whether you're dealing with credit cards, personal loans, or salary deductions, you now have more rights and better tools to manage your money wisely. 

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