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ABK raises awareness on the process of securing loans from banks in Kuwait

28 July 2022

ABK raises awareness on the process of securing loans from banks in Kuwait

Al Ahli Bank of Kuwait (ABK) continues its support for the nationwide awareness campaign – ‘Let’s Be Aware’, launched by the Central Bank of Kuwait (CBK) and Kuwait Banking Association (KBA). The campaign aims to raise awareness about customers’ rights and responsibilities with regards to banking products and services.

The ‘Let’s Be Aware’ campaign is geared towards educating consumers about the best use of banking products and services. Enhancing customers’ knowledge of the precautions they must take to preserve their funds is a key priority. The campaign also helps users avoid any misuse of banking products and services, breaching their responsibilities, and utilizing banking facilities to manage their savings. ‘Diraya’ also provides tips on cyber safety and security, familiarizing people with special needs with their rights and services, in addition to clarifying the process for raising complaints about banking services and products.

The campaign spotlights banks and their role in providing banking services and highlights clear and specific policies related to the borrowing process; types of bank cards and tips for using them; products and services related to investing and saving; and personal finance. The campaign also aims to increase financial inclusion awareness to stimulate monetary and economic stability.

The Central Bank of Kuwait has established a clear set of rules and policies to support both consumers and financial institutions while borrowing and financing. Banks are required to clearly disclose details about loans with consumers such as the value and number of instalments, payment dates, the ratio of the instalment to the net salary, and the consequences of non-payment. Moreover, banks are obliged to also clarify to customers their duties in case of retirement, career shifts, or change in the interest rate applied.

According to the Central Bank’s policies, consumers are entitled to a period of at least two days to review the contract before signing. Once the contract is signed, consumers can request a draft of the contract that will include details like; the type of loan, the repayment period, the amount of the instalment, and the return of the loan. Banking institutions are required to advise and counsel customers in the process and ahead of the completion of them securing a loan.

Mr. Fawzy Al Thunayan, General Manager of Board Affairs at ABK said, “ABK is committed to the ‘Diraya’ campaign and continuously supports all the initiatives carried out by the Central Bank of Kuwait. At ABK, we believe that it is our duty to raise awareness about the process of borrowing and financing to ensure consumer harmony and enhance financial and economic stability in Kuwait. Our consolidated policies, services, and campaigns are fully aligned with the objectives of this campaign. We believe it is necessary for us to play an active role in raising banking awareness with our customers and also with society at large.”

The Central Bank of Kuwait requests all financial institutions to provide financial advice to customers before and during the period of financing.

‘Diraya’ campaign addresses several topics in banking including the borrowing processes, bank cards, cryptocurrency transactions, digital security, services for customers with special needs, and the process of raising official complaints. The campaign also educates the public about the pitfalls of excessive consumption and the importance of saving.