Banks in Kuwait have started the policy of burning interest rates on personal loans, specifically consumer loans, with the possibility of expanding it to include a part of the installment.
Al-Rai learned from relevant sources that “a number of banks, including traditional and others operating in accordance with Islamic law, have started marketing their loans of between 25 and 40 thousand dinars to new customers, without interest in addition what it called incentive discounts.
Banking sources pointed out that “one of the most important conditions for obtaining the goodwill loan is that the applicant must he a Kuwaiti employee and the salary is transferred to the lending bank, and able to pay the loan installment, meaning he/she has not other financial commitments or he/she must be able to withstand the liability.
Those liable for these loans new Kuwaiti employees must have (during the past two years), not postponed payment of their loans due to the Covid-19 repercussions to help the bank build a solid long-term credit relationship with them.
The sources stated “in the past, there were one or two banks that granted good loans out of social responsibility and for various reasons, but this move remained on a small scale, with a low credit ceiling,” noting that the banks “are now adopting a collective measure that enhances their tendency to raise the credit limit.”