Money and business

Terms of a self-employment loan for the unemployed and how to get a loan

person writing on white paper

What is a self-employment loan for the unemployed

Regarding the economic definition it is defined as a financial product what this term means is that a bank provides banking services in terms of transactions and loans.

In this context, this financing product is aimed at Citizens who are unable to work.
In addition, the field of self-employment helps many people to casually increase their monthly income.

Many people rely on it as a form of additional income.

The development bank offers self-employment credit conditions for the unemployed, employees and other sectors. It provides them with sufficient finance through which they can conduct business for free on their personal account.

What are the terms of a self-employment loan for the unemployed

In order for an unemployed person to receive a self-employment loan for the unemployed, the applicant must meet the conditions required to obtain the loan, namely:

The applicant must have a self-employment document through the Ministry of human resources and social development, as well as other licenses for vehicle activity.
The applicant must be a Saudi national.
The monthly income of the funding applicant should not exceed 4 thousand Saudi riyals.
The financial and credit situation of the applicant or the guarantor should allow the applicant to obtain financial financing.
The applicant is obliged to provide guarantees approved by the Social Development Bank.
The applicant should not have a previous or other debt with the Social Development Bank.
In the case of vehicle insurance if the self-employment loan is financed in the direction of vehicles.
Also the presence of a sponsor who works at a government job and signs as a guarantor of the loan recipient.
A business document is required to obtain a business loan.

Self-employment loan for women

The Social Development Bank allocated the self-employment loan to unemployed women. After the emergence of a segment of economic support for women who do not have economic resources to cope with the burdens of life.

The idea of a self-employment loan came to a woman to help her manage her own project Thus, achieving more points for the Saudi society in its new renaissance, where working women who have a source of livelihood benefit from it and benefit society.

The Social Development Bank has launched a self-employment loan service without collateral with the aim of helping the unemployed. And those who want and hope to establish a project to increase income due to increased financial burdens, and in order to improve their standard of living.

Beneficiaries of the Social Development Bank loan

The Social Development Bank has determined who can get a self-employment loan for the unemployed, which are as follows:

Persons who do not have a fixed monthly salary and are not serviced by the financial system.
Employees who receive salaries of 20,000 or less for specialized service routes and shared transport.
Also unemployed people without a salary.
Read also: what is freelancing (all you need to enter this field 2023)

Objectives of financing self-employment

The self-employment loan came to achieve some goals, including:

It stimulates self-employment and contributes to the sustainability of professionals.
It works to realize the opportunity to improve the category of financial inclusion of individuals.
It works to raise the quality of life of the Saudi citizen and provide him with a decent life.
It provides a basic or additional income to citizens.
Limit informal credit.
It works to reach or reduce the unemployment rate in the Saudi society

Leave a Comment