Major Kuwait Banks to Lift ‘Loan Ban’ on Expats

Publish date: Monday، 27 May 2024

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.

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.

Major Kuwait Banks to Lift ‘Loan Ban’ on Expats

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.

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.

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Major Kuwait Banks to Lift ‘Loan Ban’ on Expats

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