Banks lure customers with free loans

Banks in Kuwait, as part of their strategy to grow market share and expand their customer base, are opening new paths to attract individual customers as an entry point to increase their competitive ability through the loan window.

Banking sources told Al-Rai that competition between banks pushes them “to create various unconventional offers for their customers, including free loans, for example, to cover wedding expenses, by granting them zero interest loans.”

According to this package, the customer will not be obligated to pay any additional money on top of his loan value, provided that his salary is transferred to the bank, and that he commits to continuing to transfer his salary for at least two years.

Sources pointed out that there are banks competing in terms of cars, as they offer financing packages to purchase a car on interest-free installments for periods up to 5 years, specifically for qualified customers, also on the condition of transfer of salary, while other banks have resorted to offering cash gifts to new customers, in addition to other benefits such as obtaining credit cards and cashback on purchases, at rates of up to 10 percent.