Central Bank: Raises monthly installment cap for retirees from 30% to 40% of salary
Press coverage 1 newspapers covered this event: Al-Qabas →
Kuwait Central Bank raises the maximum installment limit for retirees to 40% of their salary.
Translated by Qiyas from القبس — Original source
Ali Al-Khalidi: The Central Bank of Kuwait issued a circular to all local banks, investment companies, and financing firms, mandating an increase in the maximum monthly installment-to-net-salary ratio for retirees from 30% to 40%, thereby unifying the cap at 40% for all customers, whether employees or retirees. The amendment was approved by the bank’s board of directors during its meeting held on the same date, as part of the regulations governing the granting of loans and personal financing for consumer and housing purposes, as well as the issuance of credit cards, with the aim of ensuring equality among different categories and enhancing financial inclusion. The Central Bank emphasized the necessity of conducting a comprehensive credit assessment for retiring customers when granting them a loan or financing, to determine the financial impact and the remaining balance of their net retirement salary throughout the monthly installment repayment period, while ensuring that customers are informed of the assessment results and their financial implications.
