Retirees facing nationality change could see credit limits restructured, say banks
Kuwaitâs banking sector is reviewing policies for retirees who have lost their Kuwaiti citizenship. These changes could affect credit limits, loan repayments, and pension benefits for those no longer holding nationality. Banks are now assessing how to adjust financial terms for this group of clients.
Traditionally, Kuwaiti clients could borrow up to KD 95,000 in personal financing, while non-Kuwaitis faced stricter limits. If a retiree loses citizenship before retirement, they generally become ineligible for pension benefits. Banks argue that nationality is a key condition in financing agreements, justifying adjustments to credit terms.
The difference between old and new credit limits would be deducted from Social Security benefits. This reduction would count as 'early repayment', cutting interest while keeping installments aligned with the remaining debt. The end-of-service bonus often secures loans, and banks may continue deductions until the client proves equivalent income in their current job.
Local banks are also exploring how to manage credit limits for borrowing clients in this situation. Meanwhile, the Public Institution for Social Security (PIFSS) is working on a system to distribute retirement entitlements for affected retirees. As of December 20, 2025, no public details exist on specific banks reviewing these policies or their impact on pensions.
The adjustments mean lower credit limits for former Kuwaiti citizens, with deductions applied to their Social Security payments. Banks will continue monitoring income to ensure loan repayments remain secure. The PIFSSâs new mechanism aims to clarify how retirement benefits will be distributed to this group.
