Shopping for Personal Loans in Kuwait: The Ultimate Guide

November 12, 2020

Are you looking for an urgent cash loan in Kuwait?

 
When life throws unexpected events our way, we can be plunged into an urgent need for cash loan in Kuwait. The reality is that few of us are ever well prepared  when the need for personal quick loans may arise. Furthermore, getting access to the best personal loans in Kuwait can be as daunting as it is urgent.
How to find the best personal loans with best rates and terms is a complex matter.
Common personal loans can be: purchasing furniture for a new home, funding an education degree or paying for a medical emergency.
Though your need for urgent fundings or cash is obvious, you may have no clue how to access the best personal loans in Kuwait.
The current financial system presents these challenges:
  • Finding the right type of personal loan isn’t obvious
  • Accessing personal loan information isn’t transparent. The whole system is confusing, slow and frustrating.
That’s why we’ve put together this instructive guide to teach you all you need to know about accessing the best personal loans in Kuwait.
Are you looking for an urgent cash loan in Kuwait?
FinFirst offers a super app that allows users to submit many personal loan applications within less than 10 minutes.

So, let’s start your road to getting fast funding.
First, you need to learn 6 common types of personal loans. Perhaps you are new to Kuwait’s financial system and you have been wondering what types of personal loans you can access here. Can I get a mortgage? Can I get a car loan? Can I get a school loan? How is Kuwait’s loan industry different from my home country? 


The 6 most common personal loans in Kuwait that you can apply for

1- Personal Line of Credit

A personal line of credit provides you with a maximum amount of finance (borrowing limit) that you can access at any time. You can borrow up to that limit, repay it, and borrow it again. This type of loan is an excellent way to ensure access to a backup emergency fund. With a personal line of credit, you can resolve unforeseen expenditures that may arise.
 

2- Furniture Financing

Here, a bank or another lending organization lends you money to buy furniture or other household appliances. Furniture financing is particularly useful for you if you are an expat settling down in Kuwait.
 

3- Student Financing  or Student Loans

Student loans are money borrow from a bank or another financial organization to finance your educational expenses, including school fees, accommodation, textbooks, etc.
Higher education can help you improve your skills, get a better job, or secure promotion in your current job. But quality education doesn’t come cheap.
Banks in Kuwait can provide you with student loans that will help you (or your children) achieve these educational goals.
So in order to find best banks to consolidate student loans and get the best rates download our super fast app.
 

4- Healthcare Financing 

So, it’s no wonder healthcare costs are on the rise. But trips to the emergency room are never planned. This makes healthcare emergencies a top reason for the need to seek out personal loans. In times of medical emergencies, healthcare financing can be a lifesaver, which is why it’s important to understand these types of loans even if no current medical problem exists.
 

5- Mortgage Financing or Housing Loan Mortgage

Mortgage financing helps you borrow the money you need to buy a home. Acquiring a great mortgage is important because owning your house rather than renting has some clear financial advantages. For example, you can design and redesign the home as you like, investing into an asset that contributes to your net worth instead of your landlords. In Kuwait, you’ll find that banks provide many different types of mortgage financing with varying periods of repayment and interest rates.
 

6- Auto Loan Financing 

The purchase of cars is increasing in Kuwait, and a higher percentage of those purchases are conducted through auto financing or car loan. Many banks in Kuwait provide auto financing or car loan deals for locals as well as expats. The bank will charge interest on car loans, and the principal and interest are repayable over an agreed period. The interest rate will depend on the loan term (how long it will take to repay), downpayment (whether you pay down a portion of the cost of the car in cash), income and debt (the ratio of your debt to income), and the age of the vehicle.
How to get the best car loans? Check this out this article for help.

 

Before we consider how you can access these types of personal loan in Kuwait, we’ll need to look at the different loan structures and what they mean for you

  • Secured Personal Loans: A secured personal loan is a loan that is backed by collateral. The bank gives a loan offer based on the value of an asset that you submit to them. The collateral can be a car, a house, a savings/investment account, among other assets. Secured personal loans have lower interest rates compared to unsecured personal loans since the bank is taking a lesser risk, given that they can sell your asset in the case of a loan default. Also, since secured loans have collateral, there are less conditions and requirements. Ask any financial advisor, and they’ll tell you that getting a secured loan is always the best option if you have the ability to do so.
  • Unsecured Personal Loans: A personal loan is unsecured if there is no collateral backing it up. In such cases, the bank cannot sell the customer’s assets to offset part or all of the default. Since banks take a higher risk with unsecured loans, the interest rate is higher. Also, banks will have more conditions and requirements before qualifying a customer for an unsecured loan.
  • Auto financing, student financing, healthcare financing, mortgage financing and personal lines of credit can be secured or unsecured. It depends on what the bank offers and what you want.
  • Debt Consolidation Loans: Debt consolidation is the process of paying off many debts by replacing it with a new, single debt. For example, if you have outstanding balances on many credit cards, you can merge those debts into one single credit card (or other credit facilities). You will become indebted to a single lender who pays off your multiple debts.
  • Cosigned Personal Loans: A cosigned personal loan is a loan where more than one person guarantees repayment. If you apply for a loan but can’t meet some of the conditions, you can use someone who meets those conditions as a guarantor. In essence, your cosigner is someone who has the assets or credit to match your loan conditions. The guarantor agrees to become indebted to the bank if you fail to pay off your loan. The consigner is generally someone with good credit or valuable assets. Cosigned loans are available for secured and unsecured personal loans. Research bank prerequisites in Kuwait.

Now let’s look at some of the conditions and requirements for accessing best personal loans in Kuwait. Student, Healthcare, and Furniture Financing

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After signing up to our platform, you’ll be able to get access to best personal loans in Kuwait.
Instead of going through the websites of each bank or visiting each bank in person, FinFirst allows you to access the best loan from one central platform stress free. 
Are you are tired of waiting in long bank queues and filling out mountains of paperwork to get a loan, Start a better loan application experience today!
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