Press Releases
“Diraya” Campaign Leverages Awareness on the Types of Personal Loans
In line with the efforts of the Central Bank of Kuwait (CBK) to enhance financial awareness across all segments of society, the CBK-managed, “Be Aware” (Diraya in Arabic) Campaign continues, in collaboration with Kuwait Banking Association (KBA) and with the participation of all Kuwaiti banks, to leverage public awareness of the banking sector’s role, and how customers can use banks’ diverse services most advantageously.
In a statement, the CBK highlighted that “Diraya” Campaign sheds the light on the personal consumer and housing loans and financing extended to retail clients by conventional and Islamic financial institutions, respectively. The consumer loans accommodate the household needs, e.g. auto, healthcare, study, etc. up to 25 times the customer’s net monthly salary and up to a maximum amount of KD 25,000, to be repaid over a maximum period of 5 years. The other type, i.e. housing loan, is intended to finance construction or renovation up to KD 70,000, to be repaid over a maximum period of 15 years.
The statement further explained that all types of loans and financing facilities are financial obligations and, thus, must be used for their designated purposes. For example, spending the housing loan for consumer needs or investment, may adversely affect the customer’s financial position.
The CBK added that its instructions regarding loans and household financing laid down specific controls to protect customers’ rights and reduce their financial burdens and over borrowing. Such controls include fixing the monthly instalment to net income ratio at 40% for employees and 30% for retirees. Within the same context, the CBK instructions issued to banks and financing companies stipulated that lenders should review the customers’ monthly obligations and advise them accordingly on their needs and obligations. They are also to explain the consequences of being overburdened in case of any change to the financial condition, resulting from a change of employment or retirement status.
The content provided by the campaign is published through several channels, most notably on the CBK and Kuwaiti banks social media accounts. More information on the “Diraya” banking awareness campaign and its objectives, as well as campaign content, is available through its official website: www.dirayakw.com
