Regulatory Alerts2022-05-30
Rules and Regulations for Extension of Consumer Loans and Other Installment Loans by Financing Companies
The Central Bank of Kuwait amended regulations for consumer and installment loans to enhance transparency by mandating clear contracts, mandatory two-day reflection periods before signing, and strict caps on loan terms and monthly installments. Financial institutions must now provide detailed cost breakdowns, maintain electronic records, and permit contract re-arrangements for new financing or early debt transfers. Compliance is enforced through quarterly continuous inspections by qualified independent audit firms that verify adherence to pricing rules, documentation standards, and internal control systems.
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