Banks Relax Loan Restrictions for Expats
KUWAIT CITY, KUWAIT: In a move to boost credit growth, major Kuwaiti banks are easing restrictions on lending to expats, marking a shift in policy after nearly four years of stricter limitations.
Stay updated on Kuwait’s latest news and job openings by following our WhatsApp channel! https://whatsapp.com/channel/0029VaCkXo25q08jnKrRwo27
The change comes amid a slowdown in individual financing since 2023. Local banking sources told Al-Rai that banks are now internally discussing lifting restrictions on loans for residents, previously imposed during the COVID-19 pandemic.
However, there are still conditions. Banks are being more selective, with stricter criteria including a minimum ten-year end-of-service bonus and employment with a reputable, financially stable company.
Under the new guidelines:
- Eligibility: Non-Kuwaiti government employees earning at least 250 dinars monthly and private sector workers earning at least 500 dinars are eligible. Additional benefits like higher end-of-service bonuses are required.
- Professions: Eligible professions include traditional roles like doctors and engineers, along with newer categories like journalists and technicians.
- Loan Caps: Loans are capped at 25,000 dinars, with installment limits determined by individual financial health.
Stay updated on Kuwait’s latest news and job openings by following our WhatsApp channel! https://whatsapp.com/channel/0029VaCkXo25q08jnKrRwo27
This shift signals increased competition among banks as they vie for expat customers, previously a niche served mainly by smaller banks. It reflects a broader strategy to attract creditworthy borrowers in a challenging economic climate.
While banks remain cautious due to risk management concerns, the easing of restrictions highlights a need to balance prudence with growth. They are still wary of financing certain government jobs targeted for Kuwaiti citizens.
The evolving lending landscape for expats reflects Kuwaiti banks’ strategic response to navigate regulations, competition, and the need for sustainable growth.
Stay updated on Kuwait’s latest news and job openings by following our WhatsApp channel! https://whatsapp.com/channel/0029VaCkXo25q08jnKrRwo27
Comments (0)