Kuwait City: Banks resume lending to expats in Kuwait. Banks have liberalized lending conditions for foreigners working in the private sector. Banking sources said the loan would be fined up to 20 times salary. Repayment period extended to 8 years.
Banks in Kuwait have been very generous in providing personal loans to foreign borrowers at low interest rates. But in the last three years, due to Covid, the country’s banks have not granted loans to foreigners working in the private sector. The minimum salary for obtaining a loan was reduced from the previous 500 dinars to 300 dinars and the working period was reduced to 4 months instead of one year, local newspaper Al Rai reported.
The salary of the loan applicants and the past transactions of the applicant will be considered in sanctioning the loan. Foreigners will be granted a maximum loan of 70,000 dinars. The repayment term of the loan has also been increased to 8 years. With the liberalization of loan conditions, thousands of foreigners can apply for loans. Earlier loans were granted to foreigners subject to stringent conditions by the Central Bank. Meanwhile, previous conditions such as that the loan applicant’s employer must be listed on the Kuwait Stock Exchange will continue, officials said.
