Credit Card Promissory Note Template for Saudi Arabia

A Credit Card Promissory Note is a legally binding document that creates an unconditional promise to pay outstanding credit card debt in Saudi Arabia. This document serves as additional security for banks and financial institutions, ensuring they have enforceable payment obligations from cardholders while complying with SAMA regulations and Islamic banking principles.

When do you need this document?

You'll need a Credit Card Promissory Note when applying for a new credit card in Saudi Arabia, as banks typically require this as part of their security documentation. Financial institutions also use this document when increasing credit limits, restructuring existing credit card debt, or when cardholders have exceeded their credit limits. Corporate entities often need these notes when applying for business credit cards or when adding supplementary cardholders to existing accounts. Additionally, banks may request updated promissory notes during annual credit reviews or when implementing new SAMA compliance requirements.

Key legal considerations

The document must include an unconditional promise to pay that complies with Islamic finance principles, avoiding any interest-based language that would violate Shariah law. Essential clauses include precise identification of all parties, clear payment obligations, and compliance with SAMA's credit card operational guidelines. The note should specify the credit limit, repayment terms, and enforcement mechanisms while ensuring consumer protection rights are maintained. Guarantor provisions, if applicable, must be clearly defined with their obligations and liability limits. The document must also include proper witness requirements and notarization procedures as mandated by Saudi commercial law.

Legal requirements in Saudi Arabia

Under the Islamic Banking Control Law, all credit card promissory notes must comply with Shariah principles and avoid interest-based arrangements. SAMA's Rules on Credit Card Operations require specific documentation standards, including proper party identification using Saudi national ID numbers or Iqama numbers for residents. The Saudi Commercial Papers Regulation mandates that promissory notes include unconditional payment promises, specific amounts or calculation methods, and proper execution procedures. Banking Consumer Protection Principles require clear disclosure of cardholder rights and obligations, dispute resolution mechanisms, and fair debt collection practices. The document must be executed before authorized witnesses or notarized according to Commercial Court Law requirements, ensuring enforceability in Saudi courts.