The Saudi Central Bank (SAMA) has increased the maximum outstanding financing limit for individual customers using Buy Now, Pay Later (BNPL) services from SAR 5,000 to SAR 10,000.
The new limit was announced in a circular issued to banks, financing companies and BNPL providers operating in the Kingdom.
Under SAMA’s regulations, the increase applies to the total outstanding BNPL financing available to each individual customer.
The central bank also confirmed that BNPL financing can be repaid over a maximum of 12 installments. Repayments must be made through electronic channels, while cash collection is not permitted.
SAMA noted that it retains the authority to increase or reduce the financing limit in the future if considered appropriate.
The regulations also require BNPL companies to keep their total outstanding financing within the approved limits based on their capital and reserves, unless they obtain prior approval from SAMA. In addition, companies may not obtain financing facilities from unlicensed lenders without the central bank’s approval.
Source: Okaz (citing a Saudi Central Bank circular)