Article 390 of the Saudi Civil Transactions Law
المادة 390 من نظام المعاملات المدنية · الفصل الرابع: عقد القرض
The article places the costs of the loan and of repaying it on the borrower, unless the parties agree otherwise.
Official text (Arabic)
This article has not been amended since the law was issued.
تكون نفقات القرض والوفاء به على المقترض؛ ما لم يتفق على خلاف ذلك.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 390 explained in plain English
This article specifies who bears the costs of the loan, which cover two kinds:
- The costs of the loan itself.
- The costs of repaying it, meaning what is needed to return the loan to the lender.
The rule: these costs are borne by the borrower. The borrower is the beneficiary of the loan, so he bears the costs connected with it.
The exception: if the parties agree otherwise, for example that the lender bears all or some of the costs, their agreement applies.
The article does not list in detail the kinds of costs meant, and does not set their amounts; they vary according to the nature of the loan and how it is documented and repaid.
This article is connected to Article 389, which obliges the borrower to repay at the place of the loan unless otherwise agreed; if repayment requires certain costs, they fall on the borrower unless otherwise agreed.
It is advisable for the parties, if they want something other than the rule, to state in the loan contract who bears the costs. In case of a dispute, it is advisable to consult a lawyer who specializes in civil cases.
Practical example
Mansour borrowed a sum from his relative, and the documentation of the loan and the transfer of the amount on repayment required costs. They did not agree on who would bear them, so under this article they fall on Mansour as the borrower.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 390 of the Saudi Civil Transactions Law
Who bears the costs of the loan?
The borrower bears them unless otherwise agreed.
Do the costs include the expenses of repaying the loan?
Yes. The article places the costs of the loan and of repaying it on the borrower.
Can the lender bear the costs?
Yes, if the parties agree to that.
More articles on Loan Contract
- Article 382
The article defines a loan as a contract by which the lender transfers ownership of a fungible thing to the borrower, on condition that the borrower returns its equivalent.
القرض عقد يُمَلِّكُ بمقتضاه المقرِضُ شيئًا مثليًّا للمقترض على أن يرد مثله.
- Article 383
The article provides that a loan contract is formed only when the borrower takes possession of the borrowed thing.
لا ينعقد القرض إلا بقبض الشيء المقترض.
- Article 384
The article requires the lender to have full legal capacity, and prevents a guardian or custodian from lending the money of a person under his authority, or borrowing for him, except in accordance with the legal provisions.
1- يجب في القرض أن يكون المقرض كامل الأهلية. 2- ليس للولي أو الوصي إقراض مال من هو في ولايته ولا اقتراضه إلا وفقًا للنصوص النظامية.
- Article 385
The article makes void any condition, made at the time of the contract or when payment is deferred, that includes an increase in the repayment of the loan paid by the borrower to the lender.
يقع باطلًا كل شرط عند العقد أو عند تأجيل الوفاء يتضمن زيادة في رد القرض يؤديها المقترض إلى المقرض.
- Article 386
The lender does not guarantee against a third-party claim to the borrowed money or its defects unless he concealed them or guaranteed it is free of them; the borrower's duty to return an equivalent lapses on a claim, and a defective item is returned at its value as defective.
1- لا يضمن المقرِض استحقاق المال المقترَض ولا خلوه من العيوب، ولكنه مسؤولٌ عما يلحق المقترض من ضرر بسبب الاستحقاق أو العيب إذا تعمد إخفاء أيٍّ منهما أو ضمن خلو
- Article 387
The article sets the time for repaying a loan: if a term or purpose was fixed, repayment is not due before it ends; otherwise it is due when the lender asks, unless the borrower would be harmed.
1- إذا عُيِّن للقرض أجلٌ أو غرضٌ لم يلزم المقترض الوفاء قبل انقضاء الأجل أو المدة المعتادة للانتفاع به في مثل ذلك الغرض. 2- إذا لم يعين للقرض أجلٌ أو غرضٌ لزم ا
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.