All You Need to Know About Loans in Kuwait24.10.2022
Our needs and desires evolve with our life stages. However, they may not be in sync with our financial resources all the time. In such a scenario, loans lend us an extra pocket. It’s a traditional and secure way to get money from financial institutions to meet your various needs. And, to various needs types, there are various types of loans. You would have heard friends, family and colleagues discuss applying for a house loan, car loan, or similar. Or you could be in the process of applying for loans yourself. Also, many countries have options for expats to apply for loans. If you are an expat looking to apply for loans in Kuwait, you’re at the right place to learn all about Kuwait bank loans.
While loans are always meant to be financially helpful to bail out of situations, figuring out the correct prerequisites and the process of loans in Kuwait can be overwhelming. Lenders require comprehensive documentation and often have strict requirements for different borrowers for different types of loans. To make it easier to understand and make informed decisions, let’s start with understanding what a bank loan is:
What is a bank loan?
In general, a loan is an amount of money given by one party (the lender) to another (the borrower) for a certain time period in exchange for repayment of that amount with applicable interest. By extension, when the lender is a bank, it’s a bank loan.
The conditions for the time period, repayment and interests can vary widely - and are agreed to by each party before the transaction. A loan is usually secured by collateral such as movable or immovable properties, cash deposits, or sometimes with a credit card.
Types of loans in Kuwait
Banks in Kuwait offer a wide variety of loans for personal and business requirements:
- Personal Loan: If you are an individual (whether Kuwaiti national or expatriate), in need of money for the purchase of goods, vehicles, or houses, or you are in need of finance for some personal exigency, then the purpose you borrow for is categorized under Personal Loan.
- Consumer Loan: A consumer Loan is meant for those looking to borrow a small amount for a short period usually to buy consumer goods (furniture, electronics, etc.) or meet medical expenses.
- Housing Loan: Perhaps the most common loan type in Kuwait (and the world over), a home loan can be used for the purchase, construction or renovation of your house.
- Auto Loan: Fell for a car but falling short on its financing? Take an Auto Loan to buy new or pre-used cars for up to a certain amount. You can use the car while still paying the premium on it.
- Loan Against Cash Collateral: Have a Current Account at NBK? You can take loans up to 100% of the cash savings with flexible payments for personal usage.
- International mortgage: Planning to retire or invest in real estate abroad? Several offers international mortgage across UAE, Lebanon, Egypt, Jordan, London and France. The loan can be availed up to the certain value of the real estate.
- Loan Services: It’s helpful and exciting to take out a new loan. However, you may need more out of it. Many banks enable you the options of extending your Loan Tenure, insure it, or adjust repayments through:
- Loan Buyout
- Loan Refinancing
- Loan Insurance
- Loan Servicing
Now that you understand all the types of loans in Kuwait at your disposal, perhaps you already have locked in on the one that you are looking for. However, depending on your nationality you may have questions about whether these loans are available for you or not. Let’s look into it.
Can expats get a loan in Kuwait?
As per a World Population Review survey, “Expatriates account for about 70% of Kuwait's population including 1.1 million Arab expatriates and 1.4 million Asian expatriates.” So, no doubt that a significant number of people looking for loans in Kuwait are expats. But, can expats apply for any type of loan in Kuwait?
In the case of NBK, any person, whether a Kuwaiti national or an expatriate, who has an account with the bank can apply for all types of loans for personal and business needs.
Eligibility criteria for different types of loans in Kuwait
With this fact clear that expats can take loans in Kuwait, do note that the requirements and documentation for a loan applied by Kuwaitis and expats can vary depending on not just their nationalities but personal details as well.
Some major loan types in Kuwait and their typical requirements are:
|Loan type||Who can apply||Application requirements|
When applying for a loan, in addition to the documents required, lenders will typically use an extensive credit report to assess the probability of the loan being repaid. The credit report is usually gathered by a credit bureau and is used to evaluate the levels of risk associated with an individual applicant. So make sure to check out the credit score requirement for the loan that you’re seeking; and if it’s not met, take the necessary steps to improve them.
Hope this guide helps you choose and apply for any type of loan in Kuwait that meets your needs. You can explore NBK Loans for its fast, secure and affordable range of loans for all Kuwaiti nationals and expatriates.