Riyadh, The Saudi Central Bank (SAMA) announces the issuance of the “Rules Governing Calculation of Annual Percentage Rate (APR).” The rules aim to improve disclosure practices for consumers and standardize the mechanism for calculating the Annual Percentage Rate (APR) for financing products to individuals.
The rules include various provisions related to the methodologies for APR calculation for consumer finance products, the determinants for the cost of financing and APR calculators. Additionally, the rules require periodic review and update of the annual percentage rate calculator offered by financing institutions.
These rules shall be effective (90) days after the date of their publication on SAMA’s official Website.
The draft rules were published earlier for public consultation where relevant suggestions and observations were considered in the final version. To view the rules, visit SAMA’s website.
Source: Saudi Press Agency