An increasing number of Moroccan borrowers are devoting a significant share of their income to loan repayments, with nearly four in 10 now spending more than 40% of their monthly earnings on debt, according to Morocco’s 2025 Financial Stability Report.
The report found that 38% of borrowers who took out or refinanced loans in 2025 had debt-service ratios exceeding 40% of their income, up from 32% in 2024. The six-percentage-point increase is the sharpest annual rise in years and places the figure well above the 2015–2023 average of approximately 28%.
The analysis is based on more than 639,000 loan files covering individuals who obtained new loans or refinanced existing ones during 2025. The findings do not represent all Moroccan households but only borrowers included in the report’s database.
The trend suggests that while household borrowing continues to recover, a growing proportion of borrowers are becoming more financially stretched, leaving less room in their budgets to absorb unexpected expenses or income shocks.
Borrowers with debt-service ratios above the 40% threshold accounted for 45% of the total value of loans analyzed in the study, compared with 41% a year earlier.
The average debt burden also increased. Borrowers allocated an average of 36% of their monthly income to loan repayments in 2025, up from 34% in 2024. Between 2015 and 2022, the average stood at roughly 31%.
At the same time, household borrowing recorded its fastest annual growth in more than a decade. Outstanding household debt owed to credit institutions rose 6.9% to MAD 456.3 billion by the end of 2025, marking the strongest annual expansion since 2012.
The increase was driven primarily by housing and consumer loans. Household debt reached the equivalent of 27% of Morocco’s gross domestic product, while residents within Morocco accounted for approximately MAD 433 billion, or about 95% of the total outstanding debt.
Despite the acceleration in lending, repayment risks remain elevated. The report shows that 10.3% of household loanswere classified as non-performing at the end of 2025, underscoring the continued importance of monitoring borrowers’ repayment capacity.
Public sector employees recorded the highest debt burden among the main borrower categories. On average, they devoted 44% of their income to debt repayments, compared with 34% for private-sector employees, 36% for retirees, and 32%for self-employed workers.
Among borrowers whose debt repayments exceeded 40% of their income, salaried workers accounted for around 68%of the total.
Within that group, public employees allocated an average of 63% of their monthly income to servicing debt, while retirees spent an average of 61%, highlighting the growing financial pressure facing some of Morocco’s most stable income groups.
I think the main reason behind this is the fear of the future. when a person get employed the first thing he start thinking about making his own house and car or getting married. So I think we have to slow down and outside the matrix