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4.1. What are the types of loans?
  • There are two types of loans that can be obtained against monthly salary or continuous income:

    A consumer loan is meant to be a medium term personal loan extended to a customer for the purpose of financing the purchase of his personal needs of consumer and durable goods, or to cover educational or medical treatment expenses. The loan amount is up to fifteen times the net monthly salary of the customer (after deductions) or the monthly income, and a maximum of KD 15,000 and is repayable in monthly installments during a period not exceeding 5 years.

    An Installment loan is meant to be a long-term personal loan to finance needs that require a slightly larger budget like repairing or purchasing of a private residence. The loan maximum amount is KD 70,000 and is repayable in monthly installments during a period not exceeding 15 years.
4.2. Who are the eligible people for loans?
  • Any person who meets the bank’s credit terms can apply for a loan in accordance with the applicable rules and regulations of the Bank.
4.3. How much is the minimum salary required?
  • The minimum salary required for obtaining a loan is KD 250 considering that all the bank's credit terms are met.
4.4. How is the loans’ interest is calculated and determined?
  • The maximum interest rate on consumer and installment loans is determined by Central Bank of Kuwait and calculated on the decreasing balance of the loan.
4.5. How is the loan amount received?
  • The loan amount is deposited directly into the account.
4.6. Can I repay the entire outstanding loan balance early, or pay more than one installment?
  • Yes, the entire outstanding loan balance can be repaid without paying any additional fees. But repaying part of the loan is subjected to certain terms and conditions which requires the bank’s approval.
4.7. Can get joint loan be obtained?
  • No, joint loan is not granted as per the instructions of Central bank of Kuwait.
4.8. Is insurance compulsory for loans?
  • Insurance for installment and consumer loans is optional and not compulsory.
4.9. Can a loan be granted without a monthly salary or continues income?
  • Yes, loan can be obtained against a fixed deposit but under terms and conditions other than consumer and installment loans.
4.10. What is the loan reflection period?
  • Reflection Period is the grace period provided to the consumer and installment loans customers of two business days at least (review period is excluded for loans given for medical treatment purposes). Customers should be provided with a copy – unsigned and not final – of the loan contract when they apply for a loan request. Customers must provide a written acknowledgment of receipt of a copy of the loan contract for review purposes, without there being any commitment on part of the customer during the reflection period, and the contract will be signed after the period ends in the event that both parties agree.
4.11. Is it mandatory to submit the documents and invoices that support the utilization of the loan in the purpose for which it was granted?
  • Yes, the customer shall undertake to provide all documents required by the Bank within the grace period, including invoices and documents supporting the use of the loan in the purpose for which it is granted. In the event that the customer did not comply with the same, he will not be granted any new facilities.