The number of Kuwaiti employees who borrow from banks and financing companies is approximately 213 thousand, out of 233 thousand consumer borrowers, explaining that the value of financing for this segment amounts to about 1.7 billion dinars, without calculating interest, while their total financing constitutes about 92 percent of the value of the consumer loan portfolio.
Informed sources told Al-Rai daily that about 92 percent of consumer loans granted to Kuwaitis go to employees, while the percentage of other loans in the portfolio goes to retirees.
The same sources pointed out that approximately 87.3 percent of Kuwaiti employees who have consumer loans work in the government sector.
It is noteworthy that the number of Kuwaitis who borrow consumer loans is 232,815, while the number of Kuwaitis who borrow housing loans is 392,510; exceeding the maximum limits set in the instructions for the amount of the loan, consumer and housing financing, as well as deduction rates from the monthly salary.
As for the retirees, the sources indicated that the number of consumer borrowers from this segment is approximately 21 thousand, while the value of their existing facilities reaches the limits of 125 million dinars, at a rate of about 7.5 percent of the total value of the consumer loan portfolio.
The consumer financing is a medium-term personal loan of a period not exceeding 5 years, provided to the customer for the purpose of financing personal consumption needs. The amount of the consumer loan granted to a single customer does not exceed 25 times the net monthly salary of the customer, with a maximum of 25 thousand dinars, and it is paid in equal monthly installments. .
On a related level, the sources revealed that Kuwaiti employees also acquire the majority of housing loans in number and value, as their numbers reach about 356 thousand, constituting about 92 percent of the total clients of the portfolio, indicating that the value of housing loans registered with Kuwaiti employees is approximately 12.2 billion dinars without calculating the interest, out of about 13 billion dinars, knowing that about 84 percent of this segment are employees in the public sector.
The sources noted that about 38,000 Kuwaiti retirees have housing loans, constituting about 9 percent of the total portfolio financing, with facilities worth about KD 950 million.
It is noteworthy that housing finance is a long-term personal loan that does not exceed 15 years, provided to the customer for the purpose of buying, building or renovating private housing, and the amount of the housing loan granted to one customer does not exceed 70 thousand dinars, and it is paid in equal monthly installments.
The name of this type of loan has been modified from the housing installment loan, where the customer can combine the consumer and housing loans, and therefore the maximum loan granted is 95 thousand dinars, so that the percentage of monthly installments to the customer’s net salary does not exceed 40 percent for employees, and 30 percent for retirees.
By calculating all the numbers of Kuwaiti borrowers, the data shows that there are about 470,000 Kuwaiti employees who have housing and consumer loans, worth approximately 13.7 billion dinars, out of the total portfolio financing provided to citizens by all creditors, according to the Central Bank of Kuwait data for the first quarter of 2023.
The number of retirees obtaining consumer and housing loans is about 53 thousand, with a financing value of 1.1 billion dinars, which constitutes about 10 percent of the total portfolio.
The sources pointed out that there are about 355,545 thousand Kuwaiti borrowers — retired and employees — whose housing and consumer loans expired in the past three years, distributed by 190,886 thousand consumer loans, and 203,789 thousand housing loans.
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