Maximum Installment Cap for Pensioners Raised to 40 Percent of Salary
Press coverage 1 newspapers covered this event: Al-Qabas →
Central Bank of Kuwait Board of Directors raises the maximum monthly installment ratio for pensioners from 30 to 40 percent of net salary
Translated by Qiyas from الراي — Original source
The Board of Directors of the Central Bank of Kuwait has amended the regulations, rules, and principles governing the granting of consumer and housing loans, personal financing transactions, and the issuance of credit cards, allowing the maximum monthly installment-to-net-salary ratio for retirees to be raised from 30% to 40%. This change aims to ensure equality among different categories and enhance financial inclusion.
The Central Bank has instructed all local banks, investment companies, and financing companies to amend all relevant provisions concerning the maximum monthly installment ratio contained in the following sections, chapters, and clauses, by replacing the previously stipulated rate of 30% for retired customers with 40%, and unifying the maximum monthly installment ratio to 40% of net salary for all customers, whether employees or retirees, as follows:
Part One / Chapter Two / First / Clause 2 of Item (13/b), regarding the fulfillment of insurance salary requirements.
The Central Bank has requested banks, investment companies, and financing companies to prepare a comprehensive credit assessment for retired customers at the time of granting financing. This assessment must include a statement of the financial impact of the loan/financing and the remaining net pension salary throughout the monthly installment repayment period, ensuring that the customer is fully aware of the results of such assessment and its financial implications.
