During your loan period, your loan might have to undergo one or more of the following transactions:
Partial or Full Loan Payment
You can always choose to pay back all or a portion of your loan early, anytime at any NBK Branch in Kuwait without paying extra fees or charges for early settlement. If you partially pay your loan, your remaining principal balance will be decreased, as well as your remaining loan term. You will not be charged any future interest on your loan.
5 Years Interest Rate Review
If your loan tenor is more than 5 years, as per Central Bank of Kuwait regulations, NBK will review your loan interest every 5 years. The maximum increase or decrease in interest rate will not exceed 2% of the applicable interest rate. Depending upon the Central Bank of Kuwait rate after 5 years, your installment amount will increase or decrease.
Please note that the interest rate change will not impact your loan maturity, your loan term will remain the same.
Example, if the current interest rate is 5.75%, and your loan was granted at 8.75%, the interest rate will be decreased at the end of 5 years to become 6.75% as the maximum change in interest rate will not exceed 2% based on Central Bank of Kuwait regulations. In this case, as the interest rate has decreased, therefore your installment amount will decrease as well. In the future, depending upon the Central Bank of Kuwait rate, your installment amount will increase or decrease.
Past Due Penalty
In case you miss paying one of your monthly installments, you will be charged with 0.125% of the overdue amount per month or KD 5 minimum.