Kuwaiti banks are tightening credit policies for non-Kuwaiti residents by slashing personal loan caps and tying borrowing limits directly to end-of-service indemnities. In a bid to mitigate risk, some financial institutions have entirely halted lending to expatriates employed in sectors highly vulnerable to layoffs or the government’s “Kuwaitization” workforce policies, especially within the private sector.
Informed sources reveal that several banks now mandate that total loan amounts cannot exceed an employee’s accrued end-of-service benefits, with some lenders enforcing even stricter limits. This conservative shift has caused banks to narrow their focus to high-earning individuals at stable, major corporations. Consequently, the minimum salary required to qualify for a loan has been raised to over KD 500 at some institutions, a significant jump from previous thresholds that accepted salaries as low as KD 250 or KD 300.
Exceptions to these stringent new rules are being made for high-net-worth individuals with exceptional credit scores, as well as expatriates working in specialized fields. Professionals in healthcare, engineering, education, and the oil sector continue to find favor with lenders, as these critical roles are shielded from Kuwaitization initiatives for the foreseeable future.
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