Montenegrins are "tempted" by low interest rates - Personal loans have increased by over 20% over the last year
Montenegrin citizens are taking out more loans than ever before. In the last year alone, total personal loans have increased by over 20%.
According to the Central Bank of Montenegro, the main motive is the level of interest rates, which are currently the lowest in the last 11 years. A special contribution to this trend has also been made by the initiative of March 2024, where all banks in the country began to offer special interest rates. More than half of the new loans, the Central Bank emphasizes, have been approved with more favorable conditions.
“The average effective interest rate on household loans in August this year was 7.08%, 40 basis points less than last year. This is the lowest level since 2014. From March 2024 to August 2025, effective interest rates on new loans have decreased by a full 177 basis points,” the Central Bank said in a statement.
Although lower interest rates are more favorable in Montenegro compared to some countries in the region, authorities warn that this situation is not without risks. The growth of debt should be monitored carefully, they emphasize. The average debt for an adult citizen now amounts to almost 4,600 euros, about 800 euros more than a year ago.
"The amount a citizen can borrow directly depends on his income. Therefore, banks conduct a careful assessment of creditworthiness before granting a loan," the Central Bank emphasizes.
Regarding the protection of the rights of beneficiaries, the institution specifies that the protection of citizens will be further improved through several projects, which will particularly target the most vulnerable groups, such as social assistance beneficiaries.
The Consumer Credit Law, which enters into force on November 29, includes limiting interest rates and eliminating fees for processing and early repayment of some loans, the Central Bank concludes.
“The global economy is not yet feeling the pain of tariffs” - ECB President: Only a matter of time before the burden is passed on to the consumer
The President of the European Central Bank (ECB), Christine Lagarde, stated that the global economy "is not yet feeling the pain of the customs tariffs"......
Vlora and Durres, with the lowest rents in Europe / But they recorded an increase during 2024 due to tourism
According to the latest Property Index 2025 report by Deloitte, the cities of Vlora and Durrës are ranked among the most affordable for renters in Europe,......
British government promises 400,000 new jobs - Aims to expand clean energy sector by 2030
The UK has announced plans to train and employ more workers in the clean energy sector. The government has promised to create 400,000 jobs by......
Which countries offer the most expensive cars? - Vehicle prices in Europe. Turkey leads the way
Comparing car prices across Europe is a complex challenge. The price level index for “personal transport equipment”, published by Eurostat, is one way of......
Construction of the Vorë-Hani i Hotit railway - 16 companies from Europe and Asia, competing for the 368 million euro project
16 companies from Europe and Asia have expressed interest in the construction of the Vorë – Hani i Hotit railway line. TV SCAN has learned that the first......
Women and children exposed to economic insecurity/ Despite the decline in poverty, gender and social inequalities persist
The latest data from the Income and Living Standards Survey show that the risk of being poor in Albania has continued to decrease, reaching 19.2% in 2024,......
Local elections in North Macedonia - Ruling party VMRO-DPMNE declares convincing victory after first round
The ruling party, VMRO-DPMNE, declared a convincing victory after the first round of local elections in North Macedonia, on October 19. VMRO-DPMNE will have......
Employment opportunities for all educational levels - AKPA: 6000 vacant positions across the country
The National Employment and Skills Agency has announced 6,000 job openings across the country. Hundreds of positions in various sectors are available for......
