Gross loans issued by Montenegro’s microcredit institutions reached €152.64 million in August, representing annual growth of 20.23%. Total assets in the sector increased by 19.21% over the same period to €154.42 million. The expansion coincided with a substantial reduction in lending rates. The weighted average effective interest rate on new microcredit loans fell to 13.86%, down 6.96 percentage points from August 2025. The nominal rate on new loans declined by 5.82 percentage points to 12.97%.
Interest rates on existing microcredit loans also decreased. The average effective rate across the outstanding loan portfolio fell by 3.94 percentage points year on year to 16.79%.
Microcredit lending grew considerably faster than conventional bank lending, which increased by 9.80% over the same period. Although microcredit remains more expensive than bank financing, the difference between the two lending rates narrowed as MFI rates declined.
The available figures do not establish whether the reduction in microcredit rates resulted from stronger competition, improved funding conditions or changes in the borrower mix.
