Following its move to increase its discount rates on 21st of September, the Central Bank of Kuwait made updates on its maximum agreed interest rates on lending transactions in dinar. The bank specified its interest on consumer and housing loans which was updated to 6 percent in addition to the discount rate of 3 percent, given the 3 percent bank margin, according to a local Arab newspaper.
In addition, the interest was raised to 5.5 percent for the commercial lending transactions and other lending forms with a period not exceeding one year, as the margin is 2.5 percent in addition to the discount rate of 3 percent. Bank officials indicated that the interest on consumer loans is fixed. These are interests granted for a period not exceeding 5 years from the date the loan was obtained. Moreover, the bank reviews every 5 years the interest on housing loans granted for more than 5 years, and not more than or less than 2%.