When life throws unexpected events our way, we can be suddenly plunged into an urgent need to start shopping for personal loans in Kuwait.
Yet, the reality is that few of us are ever well prepared for when the need for personal 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 right personal loan with the best rates and terms is a search specific to each individual, which makes matters more complex. Common personal loans can include cases as varied as:
Though your need for urgent fundings or cash is obvious, you may have no clue how to access the best personal loans in Kuwait. Inevitably, the current financial system presents these challenges:
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.
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So, let’s start your road to getting fast funding.
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?
Here, we have outlined the 6 most common personal loans in Kuwait that you can apply for.
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 quickly resolve unforeseen expenditures that may arise.
Here, a bank or another lending organization lends you money to purchase furniture or other household appliances.
Furniture financing is particularly useful for you if you are an expat just settling down in Kuwait.
Student loans are money you 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.
These days, education has become synonymous with a personal investment in the future (increased earnings capacity) that is worth the price.
Banks in Kuwait can provide you with student loans that will help you (or your children) achieve these educational goals.
Health is wealth, so it’s no wonder healthcare costs are on the rise.
However, 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.
Mortgage financing helps you borrow the money you need to purchase 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.
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.
[Want to learn how to get the best car loans? Read this article on how to get good interest rates on car loans.]
Before we consider how you can access these types of personal loans, we’ll need to look at the different loan structures and what they mean for you.
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.
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 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 consolidate 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.
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.
Now let’s look at some of the conditions and requirements for accessing personal loans in Kuwait.
Most banks in Kuwait group education, healthcare, and furniture financing together under consumer loans.
It is important to do your research when it comes time to seeking out which bank deal will offer the consumer loan that is right for you.
Below, we have gathered some requirements, but is advisable for you to continue with your own research:
Below are some of the essential requirements for housing loans or mortgage financing:
Banks may or may not have specific requirements before approving a loan. Some of the requirements include:
Credit cards come in different shapes and forms. Each bank has many credit card offers with different requirements. Here are some requirements for some selected credit cards from some selected banks:
After that long (and necessary) journey through individual bank conditions and requirements, we are ready to consider how you should go about shopping for these personal loans.
One way to access personal loans in Kuwait is to come up with a list of the best banks. Once you have this list, you can visit one by one. You should also become familiar with the best banks in Kuwait.
However, visiting each of these banks in person is time consuming and can lead to frustrating mountains of paperwork for a loan that you likely need urgently.
Luckily, there is now a better way.
FinFirst is a loan matching application that quickly connects you with the best personal loans in Kuwait.
After signing up to our platform, you’ll be instantly connected to details of the best personal loans on a single page. From there, we make it easy to send a single application to all loan providers,and then select the best deal that matches your financial situation.
Instead of going through the websites of each bank or visiting each bank in person, FinFirst allows you to access the best loan offers from one central platform.
With FinFirst, getting access to the best personal loan is now stress-free and straightforward. Visit FinFirst now to get the best personal loan deals in Kuwait.
[Are you an expat or Kuwaiti who needs finance to get a new house, car, furniture, education, etc.? Are you an expat or Kuwaiti who needs funds to meet emergencies, pay medical bills, or purchase consumer items on the go? Sign up to FinFirst’s super app and start connecting with top banks within minutes.]