Stemming from its faith in the importance of customers’ awareness of their rights and responsibilities, as part of its support of the ‘Diraya’ campaign
Kuwait, 12 September 2023: Kuwait International Bank (KIB) announced its continued support of the banking awareness campaign, ‘Let’s Be Aware’ (Diraya), which was initiated by the Central Bank of Kuwait (CBK) in cooperation with Kuwait Banking Association (KBA). Since the launch of Diraya, KIB has contributed to the campaign’s success by raising customers’ awareness of the various personal funding services and products that the Bank offers, as well as the differences between the mandates of each service. The Bank also focused its efforts on educating its audience about the benefits that add unique value to the customers’ banking experience, as well as customers’ rights and duties within this financial partnership that they share with KIB.
Reflecting on the Bank’s renewed support of the campaign, Mohammed Al-Obaid, Deputy Head – Retail Credit at KIB, shed light on the importance of providing customers with all the necessary details about the different Shari’ah-compliant funds offered at KIB. Among the funds that KIB covers in its awareness campaign is Murabaha, the number and value of its installments, its percentage from the net salary, the payment due dates, as well as the repercussions of not committing to them. Furthermore, all customers who exhibit interest in the Murabaha fund must be given two days to thoroughly read the contract’s articles in detail before proceeding to sign.
Al-Obaid stressed that all customers applying for personal funds, whether consumer financing or housing finance, should be informed of the funds’ terms and conditions and who qualifies for them, before filling out the fund application. In adherence to CBK’s instructions, all customers should be informed of all governing responsibilities and duties that pertain to the funds’ laws and policies.
Speaking of the retail consumer finance offered by KIB, Al-Obaid clarified that it includes Murabaha – intended for purchasing consumer goods as well as cars – and Mosawama, noting that applying for such funds requires a minimum monthly income of KD 400. In case a customer qualifies for either fund, they are granted a maximum fund of KD 25,000 and a minimum fund of KD 1,000, with a maximum of five years for paying off the fund. Adding to the funds’ payment facilitation, KIB offers its customers a grace period of up to three months in the case of applying for funds to finance consumer goods, or six months if the funds are intended for financing a car.
In addition to consumer financing, Al-Obaid said that KIB also offers housing finance, which is a long-term retail fund for customers looking to build, renovate, or restore their existing homes, as well as those seeking to buy new housing units. Unlike consumer finance funds, housing finance mandates a minimum monthly salary of KD 500, offering a maximum fund value of KD 70,000 that can be repaid over the maximum span of 15 years – including a 12-month grace period.
Al-Obaid went on to mention other services that KIB offers to guarantee a seamless banking experience for its customers. This includes PayTally – a recently introduced digital platform that KIB dedicates to requesting and following up on Mosawama Islamic funds. PayTally also offers KIB customers a wider range of benefits that they can easily request and acquire from the Bank’s suite of partners who offer services and products. Furthermore, Al-Obaid noted that the digital platform offers a comprehensive pool of options that cover KIB customers’ varied financing needs and aspirations, allowing them to apply for funds and even get initial approval with quick, simple steps.
On the same note, Al-Obaid elaborated that the funds available on PayTally range between KD 300-25,000 and are available for all KIB customers, both nationals and expatriates, without the need for a salary transfer, noting that the repayment periods extend from three to 60 months (five years) at the longest.
He further clarified that KIB offers its customers multiple financing services on PayTally that include consumer financing, medical financing, educational financing, as well as financing for furniture, electronics, computer-related gadgets and accessories, and financing for all sorts of smart devices. In addition, customers can also apply for financing that enables them to buy marine equipment, heavy equipment, and spare parts – not to mention a special fund for buying luxury brands’ latest models.
Al-Obaid concluded by saying that the Bank retains the right to verify that interested customers meet all of the required mandates, as well as inspect their credit status, and inquire about the purpose of the requested personal fund and the extent of their need for it. Additionally, the fund approval process includes gathering data on the fund applicant’s financial responsibilities, an insight that is necessary in order to decide the most suitable value for the fund and the monthly installment so that it doesn’t turn into a burden that’s hard for the customer to commit to.
It serves to note that KIB spares no effort to consistently gather detailed and updated insights into its customers’ banking needs. With such knowledge, the Bank directs all of its efforts and resources toward meeting its customers’ needs in an up-to-date manner that suits their modern lifestyles. This is achieved through the Bank’s unwavering efforts to reinforce and upgrade its banking services so that they’re in line with the latest digital technologies and financing services. In addition, KIB remains committed to publishing educational content all year long in a bid to raise the public’s awareness of financial literacy, including their financial rights and duties – an effort that is bound to bear fruits for customers, financial institutions, and the economy at large.