Fatima Muhammad
Saudi Gazette
JEDDAH – The consumption loans have reached SR337.2 billion by the end of 2015 as opposed to SR322.7 billion in 2014. This 4.5% increase is divided on different types of loans. The loans in the real sector include SR37 billion include fixing, maintaining and furnishing real estate unites. However the loans in the transportation sector add up to SR29.3 billion. The long lasting commodities add up to SR4.9 billion loans.
The loans in the education sector were SR637 millions, while in the health sector were SR312 million and the travel and tourism SR85 million. The majority of the loans are long lasting periods that are above three years which add up to SR142.5 billion while the medium period loans are SR103.2 billion and the short period which are due in less than a year is SR91.5 billion.
The figures issued by SAMA noted that real estate loans witnessed an increase by 18%, personal loans increased by 6.3% while loans that banks provide to companies increased in total by 38.4% making it SR75.7 billion.
The increase in consumption loans is attributed to the increase in real estate prices as well as shortage of personal income to fulfill different needs. It is anticipated that loans cut up to 33% of personal incomes.
