Loan limits in Kuwait: employees vs retirees

The Central Bank of Kuwait (CBK) sets how much you may borrow, for how long and how much of your salary all your instalments may take. CBK's instructions make no distinction between Kuwaitis and expatriates — what changes the limits is whether you are an employee or a retiree.

A consumer (personal) loan may be at most 25× your net monthly salary and never more than KWD 25,000, repaid over at most 5 years. A housing loan may be at most KWD 70,000 over at most 15 years; both together at most KWD 95,000. All monthly instalments together may take at most 40% of net salary for an employee and 30% of the net pension for a retiree.

Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.

The limits at a glance

The KWD 25,000 and KWD 70,000 limits are on the amount you borrow, not on principal plus interest. CBK's instructions make no distinction between Kuwaitis and expatriates. CBK's Islamic instructions set the same amount, term and salary limits; they contain no profit-rate cap clause.

What counts in the salary limit

• Every instalment: loans and personal finance from all lenders, credit cards, operating leases and instalment purchases from shops.
• Several lenders: allowed, but the amount limits and the salary limit apply to all of them together.
• Loan insurance: optional, at most 2% of the finance amount — and if you take it, it counts in the limit too.

What "net salary" means

The monthly salary on your official salary certificate — or the social-security certificate for a pension — including the employment-support allowance, minus the deductions shown on it and the rent allowance under the housing welfare scheme. Other income, such as rent you receive, does not count.

Worked example: net salary KWD 1,200

An employee with a net monthly salary of KWD 1,200, no other instalments, borrowing over 5 years at the 6.50% cap:

• Salary limit: 40% = KWD 480.000 a month, which carries a loan of KWD 24,532.
• 25× salary: KWD 30,000.
• Amount cap: KWD 25,000.

The smallest of the three is the limit: KWD 24,532, at KWD 480.000 a month — set by the salary limit. A retiree with the same net pension may put only 30% (KWD 360.000) toward instalments, which carries about KWD 18,399.

Your own numbers: how much can I borrow? · personal loan calculator · car loan calculator.

Retirement, a fall in income, rescheduling

• On retirement a consumer loan may be stretched by 2 years (5 + 2 = 7) and a housing loan by 5 years (15 + 5 = 20), so the instalment fits the lower 30% limit.
• If your income falls and your instalments go over the limit, the lender may stretch the term past the normal maximum; the instalment then stays at least at the normal limit and at most 50% of the new net salary.
• New loan or new lender: after at least 30% of the instalments are paid on time you may take a new loan of the same type or move to another lender, at the rate in force on the new contract.
• Rescheduling after a default (only on proven inability to pay): a consumer loan may get at most 1 more year (6 years in total), a housing loan at most 3 more (18 in total).

Credit cards

• Card limit: at most 10× net monthly salary and never above KWD 10,000.
• Card debts must be repaid within 12 months; card instalments count in the salary limit. More: credit card: the minimum payment trap.

CBK's limits come from its instructions of 11 November 2018 on personal (consumer and housing) loans and credit cards, as amended in 2023 and 2025 — your lender's offer is what counts.