GOSI Announces Retiree Financing and Debt Consolidation Agreement

A new financing option for retirees through Taqdeer

The General Organization for Social Insurance (GOSI) has announced a cooperation agreement with Saudi Finance Company to provide personal-financing solutions for retirees who are members of the Taqdeer programme.

The agreement introduces financing options for eligible retirees, including the ability to purchase existing debts and consolidate qualifying obligations. Final approval remains subject to the finance company's eligibility and credit-assessment requirements.

What does the agreement include?

The announced benefits include the following:

Feature	What it means
Sharia-compliant personal finance	A personal-financing option structured in accordance with Islamic finance principles
Additional financing	Retirees may apply even if they have existing finance with another provider, subject to eligibility
Debt purchase	An existing debt may be settled through a new financing arrangement after the required approvals and procedures
Debt consolidation	Eligible obligations can be brought together under one repayment schedule
Early settlement	The option to settle the financing before the scheduled end date, subject to applicable terms and fees
Death benefit	Remaining instalments are waived in the event of death, according to the agreement and contract terms

What is debt purchase?

Debt purchase does not automatically cancel a debt. Instead, a new finance provider settles the existing obligation with the previous provider, and the customer then becomes responsible for the new financing agreement.

For some retirees, this can make repayments easier to manage by combining obligations into one monthly payment. However, the decision should not be based on the instalment amount alone. Compare the total financing cost, the repayment period, fees, and all terms of the new agreement.

Saudi Central Bank rules require the new finance provider to disclose the details and costs of the new financing before purchasing a debt and to obtain the customer's documented consent. The settlement and clearance procedures must also be completed under the applicable regulations.

Key conditions announced for the financing

Condition	Details
Age at final instalment	The retiree must not be older than 65 when the final instalment is due
Repayment method	Direct deduction from the retiree's pension
Maximum deduction	Total deductions must not exceed 25% of the pension
Final eligibility	Subject to Saudi Finance Company's policies and credit procedures

The deduction cap is intended to help preserve a portion of a retiree's monthly income. Still, applicants should review their full budget before taking on a new commitment.

Six questions to ask before applying

What is the total cost of the financing? Ask for the total amount payable across the whole contract, not only the monthly payment.
Will consolidation reduce the real burden? Compare what you would pay under your current commitments with the total cost of the new financing.
How long is the repayment period? A lower monthly instalment can sometimes mean a longer term and a higher total cost.
Are there early-settlement or administrative fees? Request these in writing before making a decision.
Will enough of the pension remain for essential expenses? Account for housing, food, health care, family needs, and unexpected costs first.
Have you read the full contract? Check the repayment schedule, debt-purchase process, waiver terms, and any special conditions.

Who is the financing for?

This agreement is aimed at retirees who are members of Taqdeer. Taqdeer is a national initiative by GOSI that offers services and benefits to retirees and beneficiaries from the public and private sectors through several tracks, including financing.

If you are interested, first verify your Taqdeer membership and use the official application channels. Ask the finance provider for a clear offer showing eligibility, amount, repayment term, and total cost before committing.

Frequently asked questions

Can a retiree apply while they already have existing finance?

Yes. The agreement states that additional personal financing may be available even where the retiree has existing finance with other providers. Approval is still subject to eligibility and the provider's policies.

What is the maximum pension deduction?

According to the announcement, the total deduction cannot exceed 25% of the retirement pension.

What is the age limit at the end of the financing term?

The retiree must not be older than 65 years when the last instalment falls due.

Is debt purchase free?

Do not assume so. Ask the finance provider to disclose all applicable costs and fees before you agree to the new financing.

Where can I check Taqdeer programme details?

Check GOSI and Taqdeer's official channels for membership, partners, and available services.

The bottom line

GOSI's agreement with Saudi Finance Company offers eligible Taqdeer members another route to personal financing, including debt purchase and consolidation. Before applying, compare the total cost, monthly instalment, and the effect of pension deductions on your day-to-day budget.

Important: This article is for general information only and is not financial advice. Eligibility, costs, and final terms depend on the finance provider's assessment and the contract offered to the customer.