Activate Your Installments Postponement
As per the new Government decision, you can now choose to postpone your installments for 6 months through the following channels:
Please note that Boubyan Bank will never contact you by phone call or message to request your confidential banking data to complete the installments postponement procedure. Please make sure you do not disclose your personal banking details to anyone.
Frequently asked questions regarding the loan deferral:
- When shall the loan deferral come into effect?
- The deferral shall come into effect within a month effective April 18th 2021 until May 18th 2021.
- How will the deferral apply, and will the installment be deducted before or after the salary transfer?
- If a customer submits a request for deferring the collection of installments before the transfer of his salary, the installments will be deferred from April and until September.
- If a customer submits a request for deferring the collection of installments after the transfer of the salary placing hold on the installment amount, the hold on the installment will be cancelled, and the installments will be deferred from April and until September.
- If a customer submits a request for deferring the collection of installments after the transfer of his salary and payment of the installment upon its maturity date, the installments will be deferred from May until October.
- Does the deferral decision apply to new Murabaha transactions?
- It shall apply only to approved murabaha transactions for which the delivery note was issued on or before April 18th 2021.
- Will non-Kuwaiti GCC nationals, illegal residents, expat residents and children of Kuwaiti women benefit from the deferral decision?
- The deferral decision applies to all Kuwaiti citizens only.
- Does the deferral decision cover consumer finance transactions only?
- The deferral covers consumer murabaha transactions including Qardh Hassan (KD 25,000 at maximum) and housing murabaha (KD 70,000 at maximum) for all existing customers.
- Does the decision apply to government loans?
- The decision applies to the installments of clients of the Fund of Remedying the Situation of Defaulting Citizens, the Family Fund, the Public Institution for Social Security, Credit Bank, and the Public Authority for Housing Welfare. These entities shall issue the resolutions and conditions concerning the application of the provisions of this Law.
- Does the decision apply to the standing orders between banks?
- How will you deal with a customer who already paid the installments of April, May, etc., ahead of the issuance of the decision?
- If the customer requests to benefit from the deferral decision, the bank will reverse the paid installments and refund the amount to the customer’s account, then postpone the installments for six months.
- Will the term of payment exceed 15 years in case of deferral?
- For some customers, the 6-month installment deferral will extend the maximum tenure of the loan, thereby making it 66 months for consumer loans and 186 months for housing loans. Moreover, the same will be reflected for transactions concluded to rearrange contractual terms for retirees and defaulting customers, leading to the amendment of the loan tenure and monthly installment.
- Will you defer the installments for defaulting customers with delinquencies?
- The upcoming installments shall be deferred only. As for delinquent installments, banks shall collect and request payment of the same. The deferral decision shall not apply for those defaulting on the installments of the Family Fund and the Debt Relief Fund.
- Does the deferral decision apply to customers against whom legal action was taken?
- It does not apply to delinquent customers against whom legal action was taken since, in this very case, the full loan amount already became due and payable.
- If an employed/retired customer requests to rearrange the contractual terms to have access to a new financing, will the deferral period be included within the 30%?
- It shall not be considered as a part of the deferral period. The 30% is calculated as a part of the paid installments as per the tenure and number of paid installments upon their maturity dates.
- Will the deferral apply only for financing transactions extended against salary transfer?
- This decision applies to financing transactions extended against cash block or a deposit as long as it is classified as consumer or housing finance.
- If the customer pays the installments through the App, will this period be considered among the existing months or will it start as of October?
- It will be calculated as of October.
- Can the number of months of the deferral period be amended or reduced? Can the deferral be rejected totally?
- Deferral of installments is for a 6-month period only.