Major Kuwait Banks to Lift ‘Loan Ban’ on Expats
- Publish date: Monday، 27 May 2024
- Related articles
- Kuwait Announces Major Visa Rule Change for All Expats
- Kuwait Banks Set Stricter Rules for Expat Loan Approval
- No Biometric Data? Kuwait Banks to Freeze Your Account
Leading banks in Kuwait are ending a four-year ban on lending to non-Kuwaiti individuals, aiming to stimulate credit growth amid a decline in individual financing since 2023.
Loan Eligibility and Criteria
Non-Kuwaiti employees in government sectors earning a minimum salary of 250 dinars and private sector employees with a minimum of 500 dinars are now eligible for loans, subject to specific conditions including enhanced end-of-service bonuses.
Read More: How to Open a Bank Account in Kuwait
Expanded Job Eligibility
Professions such as judges, doctors, healthcare workers, engineers, teachers, cooperative society employees, construction supervisors, journalists, administrators, and technicians are now eligible for loans, provided they meet specified criteria.
Loan Amounts and Conditions
Eligible customers may access loans exceeding the end-of-service bonus value, with a loan cap set at 25,000 dinars by the Central Bank of Kuwait. Installment limits are determined by solvency, salary, end-of-service bonus, and deposits.
Competitive Landscape
Major banks entering the lending market formerly dominated by medium and small banks signifies a significant development, expected to attract more non-Kuwaiti customers amidst increased competition.
Read More: The Best Neighborhoods for Expats in Kuwait
Strategic Adaptation
The revision in lending policy responds to a slowdown in credit portfolios at both individual and corporate levels, prompting banks to ease restrictions while maintaining caution.
Challenges and Considerations
Challenges include limited credit availability for Kuwaiti borrowers due to Central Bank regulations and discrepancies in targeted credit growth rates versus new Kuwaiti recruits. Banks remain cautious, especially regarding government jobs vulnerable to Kuwaitization.