Interest rates on loans to individuals in Albania dropped to 11.19 pct

According to Bank of Albania, the dropping tendency is related to ongoing measures to ease monetary policy as well as increase of competition on the lending market.

“The interest rate charged on loans to individuals have been reduced more than those on lending to business. Mid-term interest rate which is related to consumption loans has dropped to 11.19 percent in July-August compared to 12.18 percent in the second quarter,” according to the monetary policy report on the third quarter released by BoA.

This segment has been also impacted by seasonal factors. The long-term interests have also dropped by 0.74 percentage points going down to 7.82 percent, also favoring the mortgage loans to individuals and investment loans to businesses.