Applying for a loan in Kuwait is not difficult, provided you can produce the required documents and meet the bank's criteria. Loans are available for Kuwaiti nationals and also for residents, who can be expatriates.

There are different kind of loans, and the personal loan is the most common and the one with minimum documentary requirements. Depending on what sort of loan one wants, it's best to check the websites of banks offering such loans. The details of each type of loan are mentioned as the documents that would be required. Check to see whether you are eligible. Check the websites of other banks to see who offers the best deal. Generally, the basic documentary requirement is the same for every bank.

There is always a minimum amount and a maximum amount in case of personal and consumer loans. Business loans are another matter and involve omples documentation. The minimum amount n many cases is 1000 KWD. Therefore if the required loan amount is less than that, then there might be an issue.

However, the basic documents required are as follows -

1. Copy of civil ID
2. Military ID is required for MOI, MOD, and National Guard personnel.
3. Salary Certificate or Business Income proof.
4. Salary transfer continuation certificate.
5. Passport copy in case of expatriates.

It is necessary to transfer the salary account to the bank giving the loan. And this system continues until the loan is rapid, at which point the salary account may be transferred to another bank if so desired. Generally, the loan amount is dependent on the quantum of salary or the profits of the business. It is based on a bank calculation to show how much a loan an applicant can get.

There is, of course, the age factor involved. The applicant must be older than 21 years and not older than 65 years at the expiry of the loan repayment period.

However, the easiest way to get a loan in Kuwait is to use the bank where you have your account. The benefit of doing this is it simplifies the entire process. If you already maintain an account in a certain ban, then the bank knows your credit history and is in a position to give you a loan quickly. No salary account transfers are required. Salary account transfers may need employers permission. The other issue is that moving the salary account to another bank may not be convenient for the employer. Normally the salary accounts are in the same bank where the employer has his account, and the transfer of salaries is handled internally. But if the bank has your savings account or your salary account, then the whole process becomes simple.

A bank will look favourably at a loan application with a good credit history. Obviously, the financials of the loan applicant are important. The salary certificate shows your monthly income, and the bank can see what is the maximum loan that you can easily repay. The documents required are still the same, but it is possible that the bank may use the civil ID that it already possessed when the original account was opened.

It is necessary to check what the interest rate is going to be and the rep[ayment system, and the terms of repayment. Check to see what are the charges for default in one or more monthly payments. This is important because there can be unforeseen events that might prevent EMI payment.

For larger loans, the bank asks for a guarantor or some kind of indemnity. There are separate documents for such things. However, basic loans, personal or commercial, may be obtained by using the documents mentioned above.

There are a few things to keep in mind when applying for a loan in Kuwait. The most important is the capacity for repayment. While the bank will use a standard calculation based on your salary or business income, the applicant must be sure that the EMI can be met. This means that the gross expenses per month must be low enough to leave enough money to pay off the loan. If the EMI seems a little high for the tenure you want, try and get a longer-term for repayment. While this may add more interest to the loan amount, it is safer. A lower monthly instalment or EMI is better than a default. Take the repayment schedule, which is comfortable.

Therefore getting a loan in Kuwait is easy enough, provided the applicant meets the bank's requirements for the quantum of loan requested and the applicant can provide the required documents. There should be no problems if these areas can be covered adequately. Remember that banks work with paper. So the documents you submit must meet the bank's regulations.