Kuwait, 27 June 2023: In line with its ceaseless efforts in supporting safe banking and as part of its key role in the “Diraya” campaign, Kuwait Finance House (KFH) continues promoting financial literacy and highlighting the benefits of banking services and products such as personal finance.

Through the campaign, KFH seeks to raise awareness on the importance of understanding the two types of financing; consumer and housing financing which are meant to cater to customers’ needs according to set parameters.

The Bank explained that consumer finance, which is a medium-term finance of maximum KD 25,000 is granted for financing goods and services like purchasing cars, furniture, or for getting educational or medical services over a period not exceeding five years.

Whereas housing Finance is a long-term personal finance of a maximum KD 70,000 granted over a period not exceeding fifteen years for purchasing, building or renovating private housing.

KFH added that in order to benefit from the finance services without being exposed to default risks, or lawful financial obligations, the Central Bank of Kuwait (CBK) has enacted a set of controls for banks to comply with when granting finance, whether to their employees or customers.

The applied CBK controls require banks to offer financial advice, provide full information about the financing contract, and clarify the details of the financing process, e.g., rate of return, number and details of installments, in addition to other information prior to signing the contract. Further, banks must allow a period of two days for the customer to review and read the contract’s terms and conditions carefully for better understanding of his/her rights and obligations.

Diraya is a campaign launched by CBK in cooperation with Kuwait Banking Association (KBA) and local banks. The campaign aims to disseminate awareness on financial and banking services security in addition to financial inclusion, which comes at an important time, during which the focus on digital banking services is growing.

It is worth noting that KFH has always been active in promoting and supporting the Diraya campaign objectives through its media channels and transaction channels ever since the campaign’s launch in 2021.