Business borrowing gets cheaper in Morocco while consumer credit accelerates

Moroccan companies secured cheaper bank financing in the first quarter of 2026 while borrowing costs for households edged higher, Bank Al-Maghrib data showed, as credit to the non-financial sector expanded by 8.1% in April.

The average lending rate fell by 16 basis points from the previous quarter to 4.66%, according to the central bank’s monetary policy report issued after its second board meeting of the year.

Rates charged to non-financial companies declined to 4.54%, supported by lower costs for equipment loans used to finance investment and cash facilities covering businesses’ short-term liquidity needs.

The easing coincided with a 6.4% annual increase in lending to private companies in April, making corporate borrowing one of the main drivers of the wider expansion in bank credit.

Households faced a different trend. The average rate on loans to individuals rose by five basis points to 5.74% in the first quarter, although household credit continued to grow by 3.6%.

Consumer lending accelerated to an annual rate of 4.8% in April from 3.9% in the first quarter. The average consumer loan rate declined marginally to 6.86% from 6.89% in the previous quarter.

Housing loans also gained momentum, growing by 2.6% in April compared with 2.4% during the first quarter. Mortgage rates were broadly unchanged at 4.66%, against 4.67% in the final three months of 2025.

Loans to property developers slowed, however, expanding by 4.9% in April after growth of 6.2% in the first quarter, despite a seven-basis-point fall in their average interest rate to 5.37%.

Non-performing loans remained at 8.3% of total bank lending. The ratio indicates that a sizeable share of credit remains under repayment stress and should not, by itself, be treated as evidence that household and corporate finances are healthy.

The credit expansion comes as Morocco’s unemployment rate stood at 10.8% in the first quarter, leaving household income and repayment capacity exposed despite the continued rise in consumer and housing borrowing.