Kuwaiti banks will assess loan amount based on net salary

  • 22/05/2024

Kuwaiti banks will assess the loan amount based on the net salary, excluding any irregular allowances, particularly those not received by the employee during time off as they are tied to actual working hours. In the banking sector, the loan value given to the employee will diminish over time by the same sum as the net income, even if the total income remains constant. Existing borrowers will not experience any changes in their dealings with the banks. Their monthly deductions will continue as scheduled without any rise, while the net salary criteria are anticipated to be implemented for new borrowers. The General Insurance Corporation has reiterated its call for all banks to offer special banking services for retirees, such as loans and deposit incentives.

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