Kuwaiti banks open doors to expat loans amid credit slowdown
Key lending conditions -- minimum salary thresholds: 600–3,000+ dinars; maximum monthly installment: 40% of salary; employment with a stable, reputable company; verified, genuine job and salary
After years of restrictive lending to non-Kuwaitis, several major banks have revised their credit policies, targeting high-income and professionally stable expatriates. The move comes as retail credit growth has slowed since 2023.
Banks now offer loans up to 70,000 dinars for customers earning 3,000 dinars or more. Those with salaries starting at 1,500 dinars may borrow up to 50,000 dinars, while customers earning 600 dinars or more can access loans up to 15,000 dinars.
All lending adheres to Central Bank of Kuwait rules, including the cap that monthly installments cannot exceed 40% of salary.
High-limit loans are processed mainly at bank headquarters and branches, while smaller loans are increasingly offered digitally.
Banks continue to apply strict eligibility requirements, focusing on job stability, employer reputation, and genuine salaries, to prevent defaults linked to shell companies.
The policy shift signals intensified competition with medium and smaller banks, which had previously dominated the expatriate lending segment.
Eligible borrowers may also receive financing exceeding the value of end-of-service benefits, depending on employment grade and stability. Categories most likely to benefit include government employees, healthcare workers, engineers, teachers, and business owners, with limits calculated based on salary, benefits, deposits, and overall solvency.
While consumer loans remain capped at 25,000 dinars, housing and renovation loans may reach 70,000 dinars, repayable over up to seven years.
Sources attributed the shift to evolving market conditions and recent liberalization measures, including civil ID validity extension to 10 years for non-Kuwaiti property owners and foreign investor card validity set at 15 years, providing banks with stronger indicators for risk assessment.
Banks are now aligning their expatriate credit strategies with regulatory requirements, competitive pressures, and long-term borrower stability, aiming to balance growth with prudence.
