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KUWAIT CITY, Sept 13: Apparently, the news published on Aug 28 about granting interest-free loans amounting to KD40,000 to Kuwaitis sparked competition between banks; as some of them are now offering interest-free loans amounting to KD70,000 payable in four years, reports Al-Rai daily. The banking competition to reach individual customers in this field has expanded as seven banks are currently offering interest-free loans to citizens; the lowest loan amount is KD25,000 in addition to cash gifts and exclusive benefits for customers. In terms of banking, the target group for obtaining good loans is those with high salaries.
In terms of accounting, whoever borrows KD70,000 must be receiving a minimum salary of KD3,645 to be able to pay the monthly installment of KD1,458 as per the directive of the Central Bank of Kuwait (CBK); which set a higher ceiling for the monthly deduction – 40 percent of the salary for employees and 30 percent of the pension for retirees.