1. Credit & Lending Decision– Project
Title of the Report: Real Estate Loans
Professor: MR. Mohammed Joum'aa
------------------------------------
Project done by:
Ahmad Al-uzom
Al'aa Sakkal
Hassan Kahoajie
Date: 22/1/2009
1

2. Most of the economists especially the bankers here in Syria must know that Syria was
having more than 8 private banks and at lest one public bank in addition to the Central bank
of Syria and of course Syria before 1963 when the Al-B'aath party took the authorities and
the leadership here in Syria was having at this time an advanced and developed financial
system including the three types of the business organizations "Sole propetiorship,
Partnership and Corporations" and an advanced financial or securities exchange market.
After 1963 when Al-B'aath party came to the public authority in Syria a new rules and
decree-laws was made by the authorities at this time one of them was the nationalization
which means converting most of the economical sectors from private ownership to the
public ownership and one of the sectors was the banking sectors so from this time 1963 all
the private banks was owned and runner by the public "government" sector and this
scenario still until 2001 when President Bashar Al-Asad elected to be the leader of Syria,
Mr. President published ( Law No. 28/2001, Private Banks Establishment in Syria ) and
(Law No. 35/2005, Islamic Private Banks Establishment in Syria ) which allowed to the
private banks to invest in Syria with $30 million required as a beginning capital for the
establishment and $100 millions required as a beginning capital for the establishment of the
Islamic banks and from 2003 until today we have a mixture of many kind of banks" public,
private and Islamic private banks". Until this date 2009 Syria has 6 public banks, 9 private
commercial banks and 3 Islamic banks.
The 6 public banks are the following:
1- The Real Estate Bank of Syria.
2- Commercial Bank of Syria.
3- The Agricultural Bank of Syria.
4- The Industrial Bank of Syria.
5- The Popular Lending Bank of Syria.
6- The Savings Bank of Syria.
The 9 commercial private banks are the following:
1- Bank Audi-Syria.
2- Byblos Bank.
3- Bank of Syria & Gulf.
4- The International Bank for commerce and financing.
5- Bank of Syria and emigrant.
6- The Arabi Bank.
2

3. 7- Banque Bemo Saudi Fransi.
8- Bank of Gordan-Syria.
9- The France Bank-Syria.
The 3 Islamic private banks are the following:
1- Islamic International Bank Of Syria.
2- Bank Of Cham.
3- The Islamic Barakeh Bank.
The basic job of all the banks is to provide the loans to customers or the borrowers "that
represents the asset for the banks and the original source of the profit for them" with an
interest rate that is higher than the interest rate that the banks are liable and must pay for
theirdepositors,these loans are various among commercial & industrial loans, agricultural
loans, financial institution loans, individual or personal loans, lease financing receivable
loans, term loans, working capital loans and finally real estate loans.
Most of the Banks here in Syria provide different types of real estate loans for
businesses and individuals including:
1- Loans for rebuldings, reparation, restoration and painting the homes.
2- Loans for constructing the homes.
3- Loans for purchasing heaters that works by the solar system and elevators loans.
4- Housing loans or Loans to buy a home.
Home purchasing loans will be the title for this research and the comparison will be
among the public banks, commercial private banks and the Islamic private banks.
*The Public banks:
Real Estate Bank will be the targeted bank for this sector because it's the only public
bank that interested in the real estate loans and it provides Home purchasing loans while the
other public banks don't interested in the real estate loans except the commercial bank that
intend to provide the Home purchasing loan but until now the bank doesn't provide any real
estate loan except Loans for purchasing heaters, elevators and painting loans, maybe in 2009
it plans to provide Home purchasing loans.
Real Estate Bank was Created in 1966; the Real Estate Bank of Syria is a public
establishment, and already counts 20 branches, including 3 in Damascus. With over 2000
Point of Sales over the country, Real Estate Bank has the widest network of branches
covering all governorates, major cities, and plans to further develop its network in the close
future. The Bank aims at extending support to construction activities all over Syria, and to be
a facilitator for touristic, industrial, commercial but also individual projects in Syria. The
Bank also promotes the setting up of cooperative societies and corporations whose objective
is to build property, mainly for housing and working purposes. Real Estate Bank plays a
3

4. major role in long term financing of Syria, offering credit lines up to 15 years. The Bank also
grants loans to individuals, particularly those with a low to middle income, for the
construction of homes, commercial, scientific and professional offices. The Bank has been
pioneer in introducing ATM and use of Visa and MasterCard into Syria and counts more than
70 ATMs machines all over the country. The bank insures its clients of a high level of
banking services by adopting the latest computerized accounting equipment, including the
world-acknowledged Phoenix banking system. In 2007, The Real Estate Bank of Syria will
extend its services to become a Universal Bank covering a large range of financial services
including Commercial Banking, Investment Banking, Corporate Finance, and Retail Banking,
and accepting deposits, encouraging saving and giving guarantees. The bank is committed to
open up to foreign investors and will start to deal with foreign currencies.
Data about the bank:
Company Data:
Real Estate Bank of Syria
Dr. Mulham Dibo
General Manager
Yousef al Azmeh sqr PO Box 2337, Damascus
Syria
dido-e@clubimate.com
www.reales1tatebank-sy.com
Tel. +963 11 -2456777
Fax. +963 11 -2237938
4

5. Consumer Loan INDIVIDUAL HOUSING LOAN
Guidelines To buy a finished apartment or house
Targeted
Customers
Only for the mature Syrian citizens who has the Syrian Nationality and the Syrian
Palestinian citizens from any religion.
Loans period and
Interest Rate
-Loans for 15 years required 9.5% interest rate.
-Loans for 10 years required 9% interest rate.
-Loans for 5 years required 8.5% interest rate.
Amount Of Loans
and period
-The minimum period of loan is 5 years and the maximum loan period is 15 years.
- The maximum credit line for this type of loan by S.P is 1200000.
- The maximum credit line for this type of loan as a percentage is 75% of the
house value that is valued by a real estate expert seller.
-The minimum amount that the customer must pay to get the loan is 25% or
300000 S.P of the required loan.
Required reserve
and Repayment
arrangement
Each borrower much has or leave a deposit at the real estate bank without an
interest or the borrower can pay 5% of the loan value to the bank that the bank
can cut it from the loan that the borrower will get it's.
Time of the deposit: The amount of the loan:
-Three months. -200%.
-Six Months. -300%.
-Nine months. -400%.
-Twelve months. -500%.
-Example: to get a loan amount by S.P 600000, borrower must make a deposit of
300000 S.P without interest or by paid 30000 S.P to the bank from his loan.
-The Repayments will be equally distributed by each month and will contain the
interest payments+the principal amount.
-The required net salary or net income each month must recover twice and a half
of the required monthly payment or in simple English the salary or the net income
at least 40% of its must the required loan monthly payment.
-Example of a loan for 15 years with 9.5 interest rate that has a 180 payments
and a loan amount is 1200000 S.P must has the following:
-Minimum required Salary is 31326.74 S.P.
-Monthly payment is 12530.7 S.P.
-Number of Payments is 180 payments.
-Total of payments is 2255525.31 S.P.
-Sum of interest Payments are 1055525.31 S.P.
1- Each bank before he gives the loan approval to the customers, the banks
should take some steps to secure the loan and these procedures it taken
by the credit analysis department:-
2- The Customer should fill the contract report that is issued by the bank
and this report has general information about the borrower like:*
Customer Name. * Address. * Telephone. * military Service Religion.
*Nationality, Age, Gender, Kind of the required real estate loan, The
customer condition with bank if he is a new client or he is an old client for
the bank. His credit history with the bank, the bank employees who is
responsible for this loan, signature of both sides the client and the
employee.
3-analyzing the customer entity and his intention to repay the required
payments & the required documents and conditions from the targeted
customer are the following :
1- photocopy for his ID and Passport.
2- The customer should finish his military service and he must make a
photocopy of his military service book.
3- Make a photocopy of the customer family book if he is married.
4- Make a photocopy of the customer civil record and a document of his
living place with the signet of Al-Moukhtar.
5- The customer's "electricity invoices, water invoices, Phone and Mobile
invoices" for the last year.
6- Paper from the court that he or she ever goes to the prison.
7- Report and a document of his current and the previous bank liabilities"
loans if he had taken a loan before or now.
4-The bank makes a visit site for the house or the apartment and check it's
situation by:
5

6. *The private Commercial Banks:
*Banque Bemo Saudi Fransi:
*Brief Summary about the Bank:
BBSF is the trading name for Banque
Bemo Saudi Fransi, a bank recognized for its
highest international standards with Syrian
roots. It is a Syrian private joint stock company and it was registered in the Commercial
Register of Damascus under Law article 13901 to become the first operational private bank to
be established in Syria in over 40 years.
*Board of the Directors:
Board of Directors
Name Position
Mr. Abdulrahman Jawa Chairman
Mr. Riad Obegi Vice Chairman & CEO
Dr. Abdulrahman Attar Member
Mr. Bertrand Viriot Member
Mr. Hazem Aswad Member
Mr. Henry Obegi Member
Mr. Jean Marion Member
Mr. Naji Rabbath Member
Mr. Yordan Obegi Member
Senior Deputy General Manager: Mr. Nabil Hchaime
Deputy General Manager Mr. Chabane Francis
/Head of Retail Division: Mr. Nasir Tamimi
Deputy General Manager: Mr. Pierre Ducos
External Auditors: ERNST & YOUNG
6

7. Consumer Loan INDIVIDUAL HOUSING LOAN
Guidelines To buy a finished apartment or house
Targeted Customers
Only for the mature Syrian citizens who has the Syrian Nationality from any
religion.
Customer Age
-Minimum required age is 25 years.
-Maximum age for the customer at the end of the loan payments should not
be up of 55 years.
Loans period and Interest
Rate
Loans interest rate are fixed for all the periods and it doesn't change "10%"
-Loans from 1 to 5 years required 8.75% interest rate
-The loan period will be from 1 to 20 years.
-Loans from 5 to 10 years required 10% interest rate.
-Loans from 10 to 15 years required 9.25% interest rate
Amount Of Loans and
period
- The maximum credit line for this type of loan by S.P is 2500000.
- The maximum credit line for this type of loan as a percentage is 60%of the
house value that is valued by a real estate expert seller.
-The minimum amount that the customer must pay to get the loan is 40% or
1000000 S.P of the required loan.
-The interest rate will be changed according to the Central bank interest
rate.
Required reserve and
Repayment arrangements
-The interest rate will be a decreasing interest rate and it counted according
to the balance.
-The Repayments will be equally distributed by each month and will contain
the interest payments + the principal amount.
-The required net salary or net income each month must equal four times of
the required monthly payment or in simple English the salary or the net
income at least 25% of its amount will be used to pay the required loan
monthly payment.
-Example of a loan for 10 years with 9% interest rate that has a 120
payments and a loan amount is 250000 S.P must has the following:
-Minimum required Salary is 1300000 S.P.
-Monthly payment is 32850 S.P.
-Number of Payments is 180 payments.
-Total of payments is 3942000 S.P.
-Sum of interest Payments are 1442000S.P.
1-Each bank before he gives the loan approval to the customers, the banks
should take some steps to secure the loan and these procedures it taken by
the credit analysis department:-
2-The Customer should fill the contract report that is issued by the bank and
this report has general information about the borrower like:* Customer
Name. * Address. * Telephone. * military Service Religion. *Nationality, Age,
Gender, Kind of the required real estate loan, The customer condition with
bank if he is a new client or he is an old client for the bank. His credit history
with the bank, the bank employees who is responsible for this loan,
signature of both sides the client and the employee.
3-analyzing the customer entity and his intention to repay the required
payments & the required documents and conditions from the targeted
customer are the following :
1- photocopy for his ID and Passport.
2- The customer should finish his military service and he must
make a photocopy of his military service book.
3- Make a photocopy of the customer family book if he is married.
4- Make a photocopy of the customer civil record and a document
of his living place with the signet of Al-Moukhtar.
5- The customer's "electricity invoices, water invoices, Phone and
Mobile invoices" for the last 2 years.
6- Paper from the court that he or she ever goes to the prison.
7- Report and a document of his current and the previous bank
liabilities" loans if he had taken a loan before or now.
4-The bank makes a visit site for the house or the apartment and check it's
situation by:
7

8. *Syrian Gulf Bank:
* Brief summary about the bank:
Syria Gulf Bank was licensed to operate as
a private commercial bank by the Council of
Ministers on 13th April 2006 through decree no
32. SGB is presently under establishment and
should be operative beginning 2007.
-The founders of this bank are divided in to two
groups:
-Syrian founders (25%) are Abdul-Wahab Sawan (5%),Kareem Mahran Khawanda
(5%), Saadalla Ibrahim Massouh (5%), Muhammad Salim Abdulkader Kailani (5%),
Abdul-Ghani Abdul-Rahman Al Attar (3%) and Costi Farid Chehlaoui
(2%).
- Foreign founders (49%) are United Gulf Bank (UGB), Bahrain (24%), Al Fotouh
Investment Co, Kuwait (11%), Global Investment House, Kuwait (7%) and First
National Bank, Lebanon (7%).
-The Board of Directors:
TitleName
ChairmanMasaud Mahmoud Jawhar Hayat
Vice ChairmanOmar Mahmoud Al Qouqa
Board memberYounis Mohamad Brouche
Board memberImad Rizk Allah Al Fata
Board memberAbdulWahab Zahid Sawan
Board memberKarim Mehran Khawanda
Board memberAbdul Ghani Abdul Rahman Attar
Board memberIssam Khair Allah Anbouba
Board memberMoh’d Ayman Arabi Kassab Bashi
General ManagerIssam Nashawati
8

9. 9

10. Consumer Loan INDIVIDUAL HOUSING LOAN
Guidelines To buy a finished apartment or house
Targeted Customers
Only for the mature Syrian citizens who has the Syrian Nationality and the Syrian
Palestinian citizens from any religion.
-In Some Situations the bank accepts some foreign customers who are living here in
Syria and the Syrian government accepts them as residents like Arabs and the
embassy employees.
Customer Age
-Minimum required age is21 years.
-Maximum age for the customer at the end of the loan payments should not be up of
60 years.
Customers Who Can Benefit
from the Loan
-Public sector employees if their foundation wants to transfer their salaries to the
bank.
-Private corporations, Insurance companies, Universities, Industrial companies'
employees if their organizations wanted to transform their salaries to the bank
account.
-The perfect class of the employees in general likes " Doctors, Accountants,
Engineers...." or businesses owners.
Loans period and Interest Rate
- Loans interest rate are fixed for all the periods and it doesn't change "10%"
-Loans for 5 years required 10% interest rate.
-Loans for 10 years required 10% interest rate.
-Loans for 15 years required 10%interst rate.
-In addition to the interest rate there is a 1% is just paid at once time at the
beginning of the loan as a commission.
Amount Of Loans and period
- The maximum credit line for this type of loan by S.P is 10 million.
-The minimum credit type for this type of loan by S.P is 500000.
- The maximum credit line for this type of loan as a percentage is 70%of the house
value that is valued by a real estate expert seller.
-The minimum amount that the customer must pay to get the loan is 30% of the
required loan.
-The interest rate will be changed according to the Central bank interest rate.
Required reserve and
Repayment arrangements
-The interest rate will be a decreasing interest rate and it counted according to the
balance.
-The Repayments will be equally distributed by each month and will contain the
interest payments + the principal amount.
-The required net salary or net income each month must equal three times of the
required monthly payment or in simple English the salary or the net income at least
30% of its amount will be used to pay the required loan monthly payment.
1-Each bank before he gives the loan approval to the customers, the banks should
take some steps to secure the loan and these procedures it taken by the credit
analysis department:-
2-The Customer should fill the contract report that is issued by the bank and this
report has general information about the borrower like:* Customer Name. *
Address. * Telephone. * military Service Religion. *Nationality, Age, Gender, Kind
of the required real estate loan, The customer condition with bank if he is a new
client or he is an old client for the bank. His credit history with the bank, the bank
employees who is responsible for this loan , signature of both sides the client and
the employee.
3-analyzing the customer entity and his intention to repay the required
payments & the required documents and conditions from the targeted customer are
the following :
1- photocopy for his ID and Passport.
2- The customer should finish his military service and he must
make a photocopy of his military service book.
3- Make a photocopy of the customer family book if he is
married.
4- Make a photocopy of the customer civil record and a
document of his living place with the signet of Al-Moukhtar.
5- The customer's " electricity invoices, water invoices, Phone
and Mobile invoices" for the last 2 years.
6- Paper from the court that he or she ever goes to the prison.
7- Report and a document of his current and the previous bank
10

11. *Byblos Bank " Syria":
*Brief Summary about the bank:
Founded in 2005, Byblos Bank Syria S.A. is the sixth
private bank to set up operations in Syria following
legislation to reform and modernize the banking sector. Byblos Bank Syria S.A. is owned and
managed 41.5% by Byblos Bank S.A.L. (Lebanon). A 51% stake was acquired by Syrian
investor and The OPEC (Organization of Petroleum Exporting Companies) Fund for
International Development has joined in the capital with 7.5%.
*Board of Directors and work team:
Name Position
Mr. Semaan F. Bassil Chairman
Mr. Alain C. Tohmé Vice Chairman
Dr. François S. Bassil Director
Mr. Mohammad Al Mortada Mohammad Al Dandashi Director
Mr. Samir A. Hassan Director
Mr. Nader M. Kalai Director
Mr. Andre Abou Hamad Director
Mr. OPEC Fund for International Development Director
Mr. El Mou’taz W. Al Sawwaf Director
Mr. Nadim F. Ghantous CEO
Mr. Walid Abdel Nour Deputy General Manager
Mr. Pierre Abi Aad Senior Relationship Manager
Mr. Antoine Abboud Advisor to the Chairman
11

12. Guidelines To buy a finished apartment or house
Product Brand Name "Bytie W ana Herah Fieh" ,"I am a free and it' my house"
Bank Logo "Boukra Ahla", "Tomorrow is better".
Apartment Location Damascus, Aleppo, Homs.
Targeted Customers
Only for the mature Syrian citizens who has the Syrian Nationality from any
religion and in some situations the Syrian emigrants.
Customer Age
-Minimum required age is 25 years.
-Maximum age for the customer at the end of the loan payments should not be up
of 55 years.
Loans period and Interest Rate
Loans interest rate are fixed for all the periods and it doesn't change "12%"
-Loans for 15 years required 12% interest rate.
-Loans for 10 years required 12%nterst rate.
-Loans for 15 years required 12% interest rate. – There
was an offer "Loans for 30 years required 11.5% interest rate".
Amount Of Loans and period
- The maximum credit line for this type of loan by S.P is 20 millions.
- The maximum credit line for this type of loan as a percentage is 50%of the house
value that is valued by a real estate expert seller.
-The minimum credit line for this type of loan by S.P is 1 million.
-The minimum amount that the customer must pay to get the loan is 50% of the
required loan.
-The interest rate will be changed according to the Central bank interest rate.
-The customer can put of deposit of a sum of money to benefit from a bank offer
that the customer can just pay 30% of the required loan as a first payment but this
deposit will stay in the bank until the sum will be 30% of the required loan.
Required reserve and
Repayment arrangements
-The interest rate will be a decreasing interest rate and it counted according to the
balance.
-The Repayments will be equally distributed by each month and will contain the
interest payments + the principal amount.
-The required net salary or net income each month must equal three times of the
required monthly payment or in simple English the salary or the net income at least
30%of its amount will be used to pay the required loan monthly payment.
-The bank will prefer un married people by required a little percentage of the
borrower income that it's part will be paid to cover the monthly payments for single
persons the percent is 30% of income, for married people percentage will be 33%
of income.
1-Each bank before he gives the loan approval to the customers, the banks should
take some steps to secure the loan and these procedures it taken by the credit
analysis department:-
2-The Customer should fill the contract report that is issued by the bank and this
report has general information about the borrower like:* Customer Name. *
Address. * Telephone. * military Service Religion. *Nationality, Age, Gender,
Kind of the required real estate loan, The customer condition with bank if he is a
new client or he is an old client for the bank. His credit history with the bank, the
bank employees who is responsible for this loan , signature of both sides the client
and the employee.
3-analyzing the customer entity and his intention to repay the required
payments & the required documents and conditions from the targeted customer are
the following :
1- photocopy for his ID and Passport.
2- The customer should finish his military service and he must
make a photocopy of his military service book.
3- Make a photocopy of the customer family book if he is
married.
4- Make a photocopy of the customer civil record and a
document of his living place with the signet of Al-Moukhtar.
5- The customer's " electricity invoices, water invoices, Phone
and Mobile invoices" for the last 3 months.
6- Paper from the court that he or she ever goes to the prison.
7- Report and a document of his current and the previous bank
liabilities" loans if he had taken a loan before or now.
12

13. 13