Banking Basics

MICR (Magnetic Ink Character Recognition), is a character recognition technology which helps in faster processing of checks. Every bank branch is given a unique MICR code and this helps to speed up the check clearing process.

Yes, for checks to be processed in the State of Kuwait, an MICR code is required. The MICR code contains data required to process the check.

As per the Central Bank of Kuwait’s instructions to all local banks, only checks meeting the standard size requirements will be accepted for processing. Checks should either be 20.3 cm x 7.6 cm or 22.8 cm x 8.9 cm.

Checkbooks issued by NBK comply with all security features as stipulated by CBK and these include:

• Type of paper used which does not allow for checks to be photocopied

• Special type of ink

• Watermark as part of the checks

UV logo

Please contact the individual who has provided you with this check and request that they provide you with a new standard check. Soon, it will not be possible to process this check at any local bank.

No, it is not. Direct sunlight damages the UV security features which would make it impossible for such checks to be processed by NBK.

• Do not write or sign over the MICR code at the bottom of the check.

• Generally keep checks in a good condition - it should not be folded or stapled to the paper. Make sure that your checks are not damaged in any way (ie: torn, folded, or crumpled).

• The check should not be exposed to direct sunlight nor kept in a hot place e.g. in a car in direct sunlight as this can damage the UV logo.

• Ensure the availability of sufficient funds in the account before issuing checks (checks returned due to insufficient funds may lead to criminal prosecutions and/ or closure of your account by NBK).

The maximum interest rate for new loans is 7.00% per year, calculated on the annual reduced balance.

This rate is subject to change depending upon changes to declared interest rates of CBK.

The interest rate on loans will remain fixed for 5 years, after which it may be changed as per CBK declared interest rates, provided that the change does not exceed 2% (either by increase or decrease) over the applicable interest rate at borrowing.

Application fees, partial payment fees or full prepayment fees are not charged.

Monthly loan installments are always fixed but may be increased or reduced at the end of every 5 years to reflect any change in the interest rate. For example, if the loan tenure is 15 years, the installment may be changed twice: the first change can occur at the end of the 5th year and the second change at the end of the 10th year.

Yes, NBK gives you the option of insuring your loan by sharing half the insurance cost with you. In the event of death, the outstanding balance of the loan is settled by the insurance company. Insurance premium is charged monthly. NBK ensures that irrespective of insurance rates, the customer’s total payout will not exceed 2% of the loan amount over the loan term.

Customers must submit evidence which proves that the Housing Loan was indeed used for the purpose it was granted, including invoices and/or contracts along with the real estate details (house purchase, construction or renovation). Customers have up to 6 months from loan grant date to submit the documents confirming the use of their Housing Loan for house purchase; and up to 1 year for house renovation or construction.

Noting that the customer is not required to submit any documents/invoices for Consumer Loan.

Please ensure to use the loan for the purpose it was granted for as the bank will follow-up the customer's use of the Housing Loan in the purpose for which it is granted. Kindly submit all the documents (invoices/contracts) confirming the use of your Housing Loan at any NBK Branch or to any NBK sales representative.

The Central Bank of Kuwait has given instructions to all banks that they must give all loan applicants a minimum loan reflection period of two working days.

The purpose of the loan reflection period is to give sufficient time to customers to evaluate all options, read the terms and conditions and then makes a decision.

Only loans required for medical expenses are exempted and can be granted without regard to such a period.

A debit card is a form of payment where the customer can purchase an item using money that is deposited in his bank account without the need to withdraw it in cash.

All customers that currently hold an active account with the bank qualify for a debit card. In the case of a new customer, they will receive a debit card instantly when opening the account at the branch.

The NBK Visa Debit Cards give direct access to your account and can be used at millions of locations worldwide at ATMs, point of sales and local websites.

A credit card is a form of payment where you can make purchases using borrowed money from the bank. This amount can be paid at a later date.

There are two ways to pay for the credit card: in monthly installments or one full payment. Paying in monthly installments will have extra charges associated that are called “flexible payment fees.” Paying the full amount is free and no extra charge is required.

The main difference is that using your debit card will directly reduce your account balance. Paying with your credit card doesn’t and you have more payback flexibility.

You can use your credit card internationally or locally using ATM machines to withdraw cash, at points of sales that accept credit card payment, or online if a merchant accepts credit card payments.

Absolutely! All NBK Credit Cards have chip for extra security which complies with EMV standards. In addition, NBK Visa and MasterCard credit cards support NBK Secure Shopping. This is an added layer of security when using your credit cards online.

Generally, your relationship officer should discuss the fees for your specific card with you. You should be aware of the yearly fee of the credit card, the monthly flexible payments fee, the overdraw fees, cash advance fees and late payment fees.

More information in the “Fees & Charges” section for your credit card.

Yes, you can monitor your credit card usage either by requesting a credit card eStatement, a printed statement copy in branch, calling the NBK Call Center, or by accessing your account via NBK Online or Mobile Banking.

A prepaid card is a form of payment where you can make a purchase using money that has been loaded from your bank account.

Prepaid cards can be loaded from your bank accounts only.  You can arrange this in branch or via NBK Online or Mobile Banking.

The money has to be deposited into a bank account before it can be transferred to a prepaid card.

The main benefit to using a prepaid card is to provide the customer with the convenience of budgeting their spending. Prepaid cards are also more widely accepted for making Internet purchases.

You can use your prepaid card internationally or locally at points of sales, or online if the merchant accepts online payments.

Yes you can monitor your prepaid card usage either by requesting a prepaid card statement through the branch, calling the NBK Call Center, or by accessing your account on NBK Online or Mobile Banking.

You can request a prepaid card through any of the bank branches, calling the NBK Call Center, or through the NBK Online Banking page if you are an existing customer.

A gift card is a prepaid card loaded with a set amount of funds.

When giving as a gift, provide the recipient with all materials you received with the card upon purchase, including terms and conditions for use. If you are giving the card to a young person who has little card-use experience, you may wish to review the materials together.

The gift card is a "non-reloadable prepaid" card, meaning the initial value is set by the person who purchased the card. Additional funds cannot be added later. As with a credit card, when you are ready to pay, simply hand the card to the cashier and sign the purchase receipt. Each time you make a purchase, that amount is automatically deducted from the card balance. It is best to personally keep track of your balance, as most merchants will not be able to tell you.

Report a lost or stolen card immediately, by calling the call center or visiting the branch. You will need to provide the lost or stolen gift card number for it to be cancelled and a replacement issued. Be sure to write down your card number and keep it in safe place in the event that your card is ever lost or stolen. To ensure authorized use of your gift card, be sure to sign the back before using.

Look for the initial balance in the documents that come with your card at the time you receive it. These card materials provide important information, including the terms and conditions for using your card, so please read them carefully before using the card.  It is important to know the remaining balance before making a purchase, as making a purchase for an amount greater than your balance could result in a denied transaction.  When making a purchase, be sure to record the amount and make note of your new balance.

Keep your card in case you have to return any purchases made with the card. If you do try to return items that you’ve purchased with your gift card, the store’s policy may require you to present the card used to make the purchase. You should destroy the card once you are sure there is no further need for it.

If your card has expired, you have no returns to make and there is no remaining balance on the card, you may destroy the card.

Unlike store-issued gift cards, your gift card is intended for use anywhere Visa cards are accepted.

You can issue a gift card for your beloved ones at any of the branches or through NBK Online Banking.