Consumer Credit Contract Template for Saudi Arabia

The Consumer Credit Contract serves as the primary legal instrument for documenting consumer financing arrangements in Saudi Arabia. It is essential for financial institutions offering personal financing, auto financing, home financing, or other consumer credit products. The document must comply with the Finance Companies Control Law, SAMA regulations, and Sharia principles, making it distinct from conventional lending agreements used in non-Islamic jurisdictions. The contract includes mandatory disclosures, profit rate calculations, payment terms, and consumer rights as required by Saudi regulations. It is designed to protect both the financial institution's interests and consumer rights while maintaining transparency and Sharia compliance throughout the financing relationship.

1. Parties: Identification of the finance provider and the consumer borrower with full legal names and details

2. Background: Context of the agreement and statement of Sharia compliance

3. Definitions: Definitions of key terms used throughout the agreement

4. Facility Details: Description of the credit facility, amount, purpose, and term

5. Conditions Precedent: Conditions that must be satisfied before the credit facility becomes available

6. Disbursement: Terms and process for disbursement of the credit facility

7. Payment Terms: Repayment schedule, method of payment, and calculation of profit rate (avoiding interest)

8. Fees and Charges: Breakdown of all applicable fees, charges, and profit rates in compliance with Sharia

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Borrower Covenants: Ongoing obligations of the borrower during the term of the facility

11. Events of Default: Circumstances constituting default and consequences

12. Termination Rights: Circumstances under which either party may terminate the agreement

13. General Provisions: Standard legal provisions including notices, amendments, and governing law