Kuwait: Expired expat visa doesn’t mean waiver of loans
While many expats have started leaving Kuwait due to expired visas, some banks have begun the process of prosecuting those with unpaid loans. A source told, “The loans taken out by expats are not waived if their residencies expire and some banks have begun to prosecute defaulting clients abroad and their sponsors at home, with the help of debt collection companies.”
There are banks that will approve the prosecution even if the loan is as low as 50 Kuwaiti dinars, while others will determine the fee depending on the weight of financing, the source added.
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In addition, the banks will start by freezing receivables and leave room for settlements, if needed, the source pointed out. By next month, there will be an accurate indication of the total loans defaulted by expats.
The source clarified that the “weight of money expat borrowed does not constitute a massive amount, in terms of value, as the loan ceiling for majority of expats is specific, often directed to consumer spending, which have specified conditions based on salaries.”
Majority of those that have defaulted on their loans are individuals working in the capacity as teaching, engineering and medical staff. Out of the 4.4 million people living in Kuwait, three million are expats.