For expats and foreigners in Kuwait, it’s important to have a guide to banking that can help them manage their money while staying in the country. This includes information about banking services such as personal loans.
In this article, we will discuss how expats can apply for a personal loan in Kuwait. We will talk about loan features, eligibility criteria, requirements, and other details. We will also go over several personal loans that are offered by major banks in the country.
Contents
Personal Loans for Expats and Foreigners in Kuwait
Generally speaking, a loan is an amount of money provided by banks, lending companies, or private lenders to borrowers. Usually, interest is applied, and both parties agree that the loan should be paid within a specific period of time. This applies to all types of loans, including personal loans.
What is a Personal Loan?
As the name says a “personal loan” is a loan that may be used for any personal purpose by the borrower. It may be used for emergencies, hospitalization, education, or special occasions, as well as for the purchase of equipment, appliances, and other items.
The personal loan is sometimes referred to as a “consumer loan.” It usually involves a small amount of money, to be paid over a short period of time, depending on the situation.
Eligibility
Who can apply for a personal loan? In Kuwait, citizens as well as expats may apply for a personal loan, as long as they meet the following general criteria:
- Has an account with the lender bank;
- Has a minimum salary of KWD 300; and
- Is not more than 70 years old by the time of loan maturity.
That being said, the criteria may also vary among banks, and also between Kuwaitis and non-Kuwaitis (expats). For instance, at the Commercial Bank of Kuwait, borrowers’ ages should be between 21-69 years old for Kuwaitis, and 21-59 years old for expats.
As for the bank’s minimum monthly salary requirement, it’s KWD 250 for Kuwaitis, and KWD 400 for expats. Nonetheless, expats with a monthly salary of KWD 250 may also apply, provided that the loan is equivalent to their end-of-service benefits.
The Bank of Bahrain and Kuwait has a similar requirement for expats. Personal loans may be availed by those have a monthly salary of KWD 300 (with end-of-service benefits), and those who have a monthly salary of KWD 400 (without end-of-service benefits).
Requirements
In Kuwait, the typical required documents when applying for a personal loan are as follows:
- Copy of civil ID;
- Salary certificate;
- Salary transfer continuation certificate;
- Copy of passport (for expats); and
- Kuwait Military ID (for MOI, MOD, and National Guards).
Banks Offering Personal Loans in Kuwait
And now, let us take a look at several banks that offer personal loans or consumer loans in Kuwait:
1. Al Ahli Bank of Kuwait
Al Ahli Bank of Kuwait offers the Consumer Loan to those who would like to purchase a new vehicle, equipment, or other items. Borrowers can expect to receive loans that are up to 15 times their monthly salary, with a limit of KWD 15,000. The maximum repayment term is 5 years, and salary transfer is not required.
The loan is available for both Kuwaitis and expat residents. The minimum salary requirement is KWD 300. Loans come with fixed interest rates and fixed installments.
For more details about Al Ahli Bank of Kuwait’s Consumer Loan, please visit the bank’s official website.
2. Bank of Bahrain and Kuwait
The Bank of Bahrain and Kuwait also offers a Consumer Loan for those who are planning to buy durable household items and other products. Borrowers can loan up to 15 times their monthly salary, with a limit of KWD 15,000.
To apply, the borrower’s minimum salary requirement must be KWD 250. Salary transfer is not required, and the repayment period may be up to 5 years. For more information about the Consumer Loan, check out the official website of the Bank of Bahrain and Kuwait.
3. Burgan Bank
Burgan Bank offers the Consumer Loan, which may used for medical expenses, educational expenses, unexpected bills, or other personal needs. Loan amounts range between KWD 1,000 and KWD 15,000, with flexible repayment periods ranging from 12 to 60 months.
To apply for this loan, a salary certificate and salary transfer is generally required. To know more about Burgan Bank’s Consumer Loan, go ahead and see the bank’s official website.
4. Commercial Bank of Kuwait
As mentioned earlier, the Commercial Bank of Kuwait offers a personal loan. Borrowers may receive up to 25 times their monthly salary, with loan amounts ranging from KWD 1,000 to KWD 25,000. The repayment period is usually between 12 to 60 months.
To apply for this loan, applicants should have a minimum salary of KWD per month. Salary transfer is required. In addition, borrowers have the option to insure their loans, as well as to settle their loans early without any additional fees.
To learn more about the Commercial Bank of Kuwait’s Personal Loan, visit the bank’s official website.
5. Doha Bank
Doha Bank offers a Personal Loan to Kuwaitis and expats alike. It can be used for building a home, paying for children’s education, starting a business, and other expenses. They can borrow up to KWD 70,000, and the repayment period can be up to 180 months.
To apply for this loan, the minimum salary requirement is KWD 240. Salary transfer is not required. For more details about this loan, check out the official website of Doha Bank.
6. Gulf Bank
Those who have a monthly salary of at least KWD 300 can apply for Gulf Bank’s Consumer Loan. This may be used to purchase household furniture, electronics, and other consumer goods. Salary transfer is not necessary, and the repayment period ranges from 1 to 5 years. For more information about the Consumer Loan, go ahead and see the official website of Gulf Bank.
Summary
Whether you are planning to buy a car, purchase a new home, or pay for your child’s education, a personal loan is certainly a big help. Fortunately, there are many banks in Kuwait where you can apply for personal or consumer loans.
We hope that the above guide has been helpful. Do not hesitate to visit the bank’s official websites to know more about their loans, as well as other products and services.
Meanwhile, in order to develop good habits, it’s important to get rid of the bad ones first. Here’s an article about bad money habits that every OFW should try to “unlearn!”