Kuwait Court of Cassation principle number 3202

Loans granted by banks. A commercial act by nature. The reason for this. It is a banking transaction, whether or not the borrower is a merchant and whether expended on commercial or civil activities. The implication of this. Interest is payable for delay in repayment. - Banking transactions. Are deemed commercial acts regardless of the capacity or intention of the person undertaking them and whatever the purpose for which the loan was allocated.