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Wednesday , August 17 2022

Kuwaitis borrow average daily housing loan of KD 4.6m

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Total installment loans reach KD 14.2 bln as of Nov 2021

KUWAIT CITY, Feb 15: The average daily amount that citizens borrow from commercial banks to repair or buy private houses is KD 4.6 million, reports Al-Anba daily. According to official data issued by the Central Bank of Kuwait, the total value of the housing loans that citizens obtained from commercial banks in Kuwait was about KD 1.5 billion from January 2021 to the end of November 2021.

The total installment loans reached KD 14.2 billion as of the end of November 2021. This is the highest level during the past decade, achieving a jump of 12 percent compared to 12.7 billion at the end of December 2020. Installment loans are long term personal loans used by the customers for non-commercial purposes, particularly the repair or purchase of private houses.

They are repaid in monthly installments over a period not exceeding 15 years. It is worth mentioning that the Kuwait Credit Bank grants citizens a loan of KD 70,000 each to buy, build or renovate their own houses. However, the value of this loan may be insufficient for many citizens to build a new home. They therefore resort to commercial banks to obtain an additional housing loan, which is paid in installments, in order to complete the construction of their houses.

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