Central Bank Raises Monthly Installment for Retiree Loans to 40% of Net Salary, Up from 30%

Kuwait officials: The Central Bank of Kuwait issued a circular to all local banks, investment companies, and financing companies, raising the maximum monthly installment limit for retirees’ loans to 40% of net salary, up from 30%. The circular stated that the Central Bank of Kuwait’s Board of Directors, in its meeting held on November 11, 2026, decided to amend the regulations by increasing the maximum monthly installment-to-net-salary ratio for retirees from 30% to 40%, aiming to ensure equality among different categories and enhance financial inclusion. The Central Bank emphasized the necessity for banks, investment companies, and financing companies to conduct a comprehensive credit assessment for retiring customers at the time of granting loans, including an analysis of the financial impact of the loan/financing and the remaining portion of the retiree’s net pension income throughout the installment repayment period, ensuring that the customer is fully aware of the study’s results and their financial implications.