Personal LoansConsumer CreditCredit CardsLending Regulations
This CBK regulation, effective November 11, 2018, outlines the rules for granting personal loans for consumer and housing purposes, and for the issuance of credit cards in Kuwait. It aims to regulate lending practices by banks and financial companies to meet actual customer needs, reduce excessive borrowing, and ensure lenders verify customer creditworthiness and provide financial advice. The instructions supersede previous guidelines on consumer and installment loans and credit cards.
Key requirements
- Establishes maximum limits for personal loans and monthly installment ratios.
- Details rules for loan application, minimum contract requirements, and controls for adjusting loan tenure and rescheduling in case of default.
- Specifies regulations for interest pricing and collection methods for personal loans.
- Sets maximum limits, repayment periods, and interest rates for credit cards issued by conventional banks.
- Mandates lenders to verify customer needs, credit position, and provide financial advice regarding obligations and risks.
Applies to: Conventional Banks, Investment Companies, and Financing Companies in Kuwait