Consumer loan interest rates fell again in the second half of 2025

2026-02-02 22:47:34, Ekonomi CNA

Average interest rates on consumer loans declined further in the second half of 2025.

According to data from the Bank of Albania, the average effective interest rate for loans up to 200 thousand lekë decreased to 54.8%, from 62.2% in the previous half of the year and 70.9% in the second half of 2024.

For bank advances (overdrafts) up to 200 thousand lek, the average effective interest rate fell to 13.71%, from 13.72% in the first half of 2024 and 13.9% in the second half of 2024.

For credit cards with a limit of up to 200 thousand lek, the average interest rate fell to 20.01, from 20.29% in the first half of 2025 and 20.47% in the second half of 2024.

For installment loans worth 200 thousand to 600 thousand lek, the average effective interest rate increases slightly to 26.57%, from 26.41% in the first half of the year, but down compared to the level of 27.42% in the second half of 2025.

For loans with amounts from 600 thousand to 2 million lek, the average interest rate fell to 11.03%, from 11.2% in the previous six months and 12.15% in the same period a year ago.

The above interest rates are calculated on all consumer loans granted by banks and non-bank financial institutions, based on the factual data reflected in the Credit Registry.

The average effective interest rate includes the nominal interest rate of the loan, but also all other costs charged to the client, including commissions or other fees.

The decline in the average effective interest rate on consumer loans is generally consistent with a downward trend in interest rates in the financial market. This decline was determined by the more stimulative monetary policy of the Bank of Albania, the good liquidity situation in the market, but also by high competition in the consumer credit market.

The application of a maximum effective interest rate by the Bank of Albania also appears to have served as a factor that has shifted average loan interest rates downwards in recent years. Since the beginning of 2022, when the application of the interest rate ceiling began, this indicator has been moving continuously downwards.

Low interest rates are supporting a very rapid growth in consumer credit. According to statistics from the Bank of Albania, the consumer credit portfolio (including overdrafts) at the end of November 2025 reached 106.3 billion lekë, an increase of almost 22% compared to a year earlier./Monitor.al