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Loan Payment - Holiday Period

Will I be charged interest during the payment holiday period?

No – The deferred period is interest free for loans.

Will my monthly installments change as a result of the payment holiday period?

No – They will remain the same.

When does the payment holiday period start and finish?

The payment holiday will commence from the April due installment and end with the September due installment so the deferral will be for a maximum of 6 monthly repayments. For customers whose deferral starts in May the holiday will end in October.

How do I apply for the payment holiday?

If you wish to take the payment holiday, please contact: our call center 1899899 or through our online page.

Can I take a payment holiday for a shorter period?

No – the deferment may only apply for 6 months.

Can I take the payment holiday on a new loan?

No – This is only applicable for loans disbursed on or prior April 18, 2021.

Will this extend my loan term?

Yes, your loan maturity will be extended by 6 months.

Does this payment holiday cover repayments in arrears?

No – these are still due. It only covers the repayments from April/May up until September/October inclusive.

Will I be charged any late payment fees?

Not on the payment holidays for those from April – September. If there were repayments that are overdue currently then these will attract the normal bank charges.

What products are covered for payment holidays?

Consumer Loans
Installment Loans
Govt Fund Loans

Excluded are Loans against FDs, Staff zero interest loans

Who is eligible for the payment holiday?

Kuwaitis with no legal action.

What about loans in other Banks where I send a standing order payment to them?

The standing order from ABK will continue to the Bank where you hold your loan unless ABK receives a request from your Bank to defer the Standing Order.

13. What about loans at ABK where I have a standing order from another Bank?

The standing order payment from your Bank to ABK may continue if they have not deferred the standing order. We will defer your installments once the request is received.

14. For MOE customers – Will you block a number of repayments for my summer salary as I will be paid 4 months salaries?

No as your monthly installment is deferred until October.

15. Will the payment holiday affect my gift loan?

Yes – the deferred installments will extend the loan term by 6 months.

16. Are loans against collateral included in the payment holiday period and will the loan maturity be extended for 6 months?

No – These are excluded. It is only consumer and installment loans.

17. How will the interest changes every 5 years for installment loans be affected?

The interest rate changes every 5 years will not be affected. It will continue on the anniversary from the loan disbursement, with the addition of 6 months.

18. What will happen to Ci-Net reporting during the payment deferral period?

Will be handled with no direct effect towards your profile.

19. If I am already past due, will I still be required to pay the interest and late fees?

Yes

20. Will my loan installment deducted in March be reversed?

No because the payment holiday starts from April.

21. Is there a specific period for receiving requests for a postponement?

Yes, the customer must apply for a postponement within one month from the date of the law. The law was established on April 18th, 2021 so the one month period ends on May 18th, 2021.

22. How will the loan deferment affect my loan if I wish to reschedule?

Loans may only be rescheduled once 30% of loan tenure has been reached. The loan deferment will push this by 6 months. Example: If original 30% was to be reached in July it will now be pushed to January.