Personal Finance

Personal finance is provided by banks to individuals to meet their personal needs. This financing is divided into two types:

Consumer Finance

Medium-term personal finance of maximum KD 25,000 over a period not exceeding five years, for financing goods and services such as buying cars, furniture, or educational or health services.

Housing Finance

Long-term personal finance maximum KD 70,000 over a period not exceeding fifteen years for purchase, building or renovation of private housing.

In order to regulate the provision of personal loans in a way that enables the customer to benefit from such facilities without being exposed to default risk, and to avoid burdening the client with financial obligations, the Central Bank of Kuwait has enacted a set of controls that banks must adhere to when providing finance, whether for employees or retirees, taking into account the financial conditions of each of these two categories. Such controls require banks to offer financial advice, provide all the information about the financing contract, and clarify the details of the financing process, e.g. rate of return/interest to the finance amount, number of installments, details of each installment and insurance installment in case the customer requested an insurance, in addition to the other information before signing the contract with the customer. In addition, the bank should give the client a period of two days to review the contract and read the terms and conditions carefully, so that the client should be aware of his/her rights and obligations under the contract before signing it.

These terms and controls can be accessed through the following links:

• The rules and principles for granting banks, investment companies, and traditional financing companies, personal loans for consumer and housing purposes and issuing credit cards