Slowing Growth of Personal Loans: A Challenge for the Banking Sector
The growth of personal loans, once a driving force behind the banking sector, has significantly slowed down. According to the Central Bank, their growth rate was only 0.57% in the first half of 2025. This decline can be attributed to several factors, including a difficult economic climate, a decrease in purchasing power, and the tightening of conditions imposed by banks, which are now more cautious when it comes to risk.
Factors Contributing to the Decline
Households, faced with rising prices and job instability, are becoming more reserved. They are now prioritizing essential expenses and often giving up on large projects, particularly in the real estate sector. The surge in housing prices and the high cost of loans have led many families to opt for renovation instead of buying, which is weakening the entire real estate sector, already penalized by over 800,000 unsold homes.
Rise of Microfinance
In parallel, microfinance is gaining ground thanks to more flexible conditions and better access to financing, offering households a more flexible alternative.
Experts' Recommendations
To revive the dynamics, experts are calling for a rethink of financing methods, including:
- Preferential rates
- Longer repayment periods
- Simplified procedures
These measures are essential to support consumption, real estate, and, more broadly, the recovery of the Tunisian economy.
