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 giving personal loans to foreign borrowers at low interest rates. But in the last three years because of Covid, the country’s banks have not given 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, reported local newspaper Al Rai.
The salary of the loan applicants and previous transactions of the applicant will be considered while sanctioning the loan. A maximum loan of 70,000 dinars is given 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 the strict conditions of the Central Bank. Meanwhile, earlier conditions such as the fact that the loan applicant’s employer must be listed on the Kuwait Stock Exchange will continue, officials said.