Commitment Consolidation Program

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The program of consolidation of obligations is one of the financing products that the company provides through the banks to its customers in accordance with the controls and instructions set by the Saudi Central Bank, whereby the customer is allowed to obtain new financing for use in rearranging and settling his current credit obligations, then the customer fulfills the monthly financial obligations resulting from this financing. This financing product has several names, such as consolidating financial obligations or consolidating indebtedness

Characteristics of debt consolidation

Consolidate debts, including any obligations, loans, or debts on credit cards, etc., by obtaining new financing to pay off all debts in easy monthly installments.

Debt management, instead of scattering among several funders, you can consolidate your obligations to these entities with one entity and then pay them off.

Reducing the cost of debt, for example, if credit card debt accumulates, and there is a high profit margin applied to the amounts owed, then personal financing to refinance these receivables will reduce this cost.

Improving the credit report, as the monthly installments for refinancing are usually less than the monthly payments for multiple obligations with more than one party, and thus the chance of default or delay in payment is reduced.

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