Kuwait City: Banks resume lending to expatriates in Kuwait. Banks have liberalized loan terms for foreigners working in the private sector. Banking sources said the loan will be sanctioned up to 20 times the salary. Repayment period extended to 8 years.
Banks in Kuwait were very generous in granting 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 has been reduced from the previous 500 dinars to 300 dinars and the work period has been reduced to 4 months instead of a 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. A maximum loan of 70,000 dinars will be granted to foreigners. The loan repayment period has also been increased to 8 years. With the liberalization of loan conditions, thousands of foreigners can apply for loans. Earlier loans were given to foreigners subject to strict conditions of the Central Bank. Meanwhile, the earlier conditions such as the fact that the loan applicant’s employer must be listed on the Kuwait Stock Exchange will continue, officials said.