How To Apply For Personal Loan In Kuwait. All You Need To Know About The Process

Personal loans are generally taken for various reasons. Some of the reasons are the requirement of funds to buy a computer, surgical procedures, or buying consumer goods. There can be many other reasons too.

Consumer loans are usually payable over a period of time, depending on what you can afford for each monthly instalment. The repayment of the principal amount, that is, the amount of the loan has to be repaid along with interest thereon. The first thing to decide is the amount you need for whatever it is you want to use it for. Once the amount is decided, then examine your finances to see how much you can afford to pay every month. Be a little conservative in this approach since failed instalments will damage your credit rating.

For a personal loan in Kuwait, you must understand that different banks offer different interest rates Check out the rates being offered by various banks. A lower interest rate translates into savings. Every financial institution has charges that they levy on such things. Check out who charges the least for giving the loan. These charges are administrative charges.

The next step is to go and talk to the lender. Discuss the amount of loan you want and the terms of repayment. This process nowadays can be done online. Remember that the lender will look at your credit rating and your income to figure out if you are to repay the loan. A show of assets held in your name, investments etc., can give credence to your loan application. If the discussion for the loan is face to face with the loan officer, then it is better to carry the relevant documents with you, showing your net worth.

If for some reason, the loan officer is not convinced about your ability to repay the loan, then you have two options. The first is to go to some other lender; the second is to get a co-signer. Now a co-signer takes on equal liability for the loan along with you. Therefore only someone who knows you well will shoulder such a responsibility. Normally the loan officer may suggest a co-signer.

Keep in mind that the bank or any lender may sue to collect the due amount from you. If they win the case, then you may lose some of your assets. Therefore make sure that you have a clear ability to repay the loan. If necessary, take a longer-term repayment loan. That way, there won’t be any default. If you are getting a co-signer, be aware that the bank or any lender can try and recover the outstanding amount for the co-signer. Therefore, be sure of the repayment aspect of the loan; otherwise, the co-signer, whoever he or she may be, is in trouble.

A personal loan in Kuwait allows you may borrow up to 25 times your net monthly salary, but with a maximum limit of KD 25,000, subject to the instalments being less than 40% of your net monthly income. The loan period can be from 12 to 60 months, at your option. The minimum loan can be KD 1000. Some banks give you the facility to ensure the loan. You may also get the option of closing the loan earlier than the term agreed upon, without paying any penalties or interest for the remaining period.

For a personal loan in Kuwait, you will need the following documents -

● A copy of your Civil ID

● A Kuwait Military ID is required for MOI, MOD and National Guards.

● Your salary certificate

● A salary transfer continuation certificate.

These are generally the documents required. Some banks offer low-interest rates and are calculated on a reducing balance basis. This means that if you keep paying, the interest goes down. This makes for a lower overall repayment.

However, there is an age factor that every lender has. The age of the borrower must not exceed 70 years at the maturity of the loan. While this is generally applicable, a bank may have terms and conditions where age is a factor.

Once you have the necessary documents, it is easy enough to go to a bank or any lender and get the loan. Keeping in mind that the quantum of the loan meets the general requirement mentioned above. Importantly, the lender must be convinced that you are able to repay the loan therefore use the calculator provided by lenders to check what the repayment amount or EMI is per month. If it is a stretch to repay, consider increasing the repayment period until the EMI amount watches the amount that you can comfortably pay. This will ensure that you do not default on the loan. If, for whatever reason, your salary amount or asset valuation is not enough to get the loan, consider getting a cosigner. But remember that the co-signer is as liable for the loan as you are. Once the loan amount and the repayment schedule is organised, it is time to meet the lender and take the loan. It is always better to have a good repayment background when you go to a lender. It makes things easy for them to give you the loan. A little bit of study before going to the lender is the way to go.