30 August 2021
Al Ahli Bank of Kuwait (ABK) continues its efforts in raising awareness on loan encashment and the associated risks in line with Central Bank of Kuwait (CBK) and Kuwait Banking Association’s (KBA) nation-wide awareness campaign, ‘Let’s Be Aware’.
Loan encashment involves taking funds from intermediaries at exorbitant interest rates to pay back an existing debt, so that new bank loans can be secured. While obtaining funding to pay back the original lender in order to borrow anew, customers could potentially present false documents or information.
“The CBK has carefully regulated personal lending and financing activities in Kuwait so that customers can benefit without running the risk of defaulting or of overburdening themselves financially,” said Mahmoud Ahmed Assad, Head of Retail Lending. “Nevertheless, customers must be careful not to overextend themselves, as this can lead to default and place them in legal jeopardy. Furthermore, creditors extending loans or financing have a responsibility to carefully counsel customers and assess their current monthly obligations and liabilities. They also have the responsibility to clearly explain the risk involved in increasing their financial indebtedness, especially in the event of changes in their financial circumstances. ”
The ‘Let’s Be Aware’ campaign brings together regulators and financial service providers in Kuwait, spearheading a joint effort to raise consumer awareness of banking products and services as well as other crucial topics such as effective bank card usage, guidance on borrowing, complaints and escalation methods, fraud management, cybersecurity protocols, and more.
Since the onset of the COVID-19 pandemic, the Central Bank of Kuwait, with the support of the Kuwait Banking Association, has helped mitigate the economic impact on the nation. The latest initiative adds to the Central Bank’s track record of ensuring financial and economic stability in Kuwait.
For more information, please follow the campaign’s Instagram and Twitter accounts at
@dirayakw and visit the campaign’s official website at www.dirayakw.com.