Household credit sees moderate rise as interest rates ease in Q2 2025

Sunday 10 August 2025 - 10:00

The volume of outstanding bank credit in Morocco reached 1,175.5 billion dirhams by the end of June 2025, reflecting an annual growth of 5.8%, according to the latest figures released by Bank Al-Maghrib (BAM).

This increase includes a 4.4% rise in loans granted to non-financial agents and a significant 13.3% jump in credit to financial institutions.

Private non-financial companies saw a 3.5% growth in credit, driven by a 12% increase in equipment loans and a 5.4% rise in real estate development loans. However, treasury facilities declined by 2.3% over the same period.

According to BAM’s Q1 2025 survey on lending conditions, credit standards tightened for treasury and real estate development loans, while remaining unchanged for equipment loans. Banks appeared to ease lending conditions for large enterprises but apply stricter criteria for micro, small and medium-sized businesses (MSMEs).

In terms of demand, banks reported increased interest in all types of corporate credit, particularly from large enterprises, while demand from MSMEs remained flat.

Access to bank financing in Q2 2025 was rated “normal” by 80% of industrial firms and “difficult” by 16%. The cost of credit remained stable for the majority (74%) but rose for 19% of businesses.

Interest rates on newly issued corporate loans fell by 26 basis points, averaging 4.91%. Rates stood at 4.67% for large companies and 5.43% for MSMEs.

Household lending rose by 2.5% year-on-year, mainly supported by a 2.5% increase in housing loans and a 2.8% rise in consumer credit. Islamic financing for housing (notably under the Mourabaha structure) reached 27 billion dirhams, compared to 23.1 billion dirhams in the previous year.

In Q2 2025, interest rates on new household loans decreased to 5.77%, with housing loans averaging 4.68% and consumer loans at 6.88%.