| Discover Algeria | About us | Press area | Contact |
-
Legal INVEST
Les derniers textes juridiques
View more
Les interviews By AlgeriaInvest
Newsletter
Subscribe to the economic newsletter
- News
NEW NEWS
- Our Services
- News
January 4, 2026 | 3 months ago
Bank loans: Slight adjustment to interest rate caps
The cost of borrowing remained broadly stable during the last six months of the past year, despite the latest measures to lower the Central Bank's key interest rates, which were expected to have a downward effect on those applied by primary banks, particularly on loans to businesses and for investment.
The Bank of Algeria has published a note setting new thresholds for excessive interest rates for the first half of 2026. These ceilings, which banks must not exceed, remain broadly stable compared with the previous six months. The effective rates applied at the end of 2025 did not change significantly: 9.42% for consumer loans, 6.87%, 6.30% and 5.82% for short-, medium- and long-term loans, 6.86% for housing loans, and 10.01% for leasing.
For the first half of 2026, the new thresholds are set at:• 10.36% for consumer credit
• 7.56%, 6.93%, and 6.40% for short-, medium-, and long-term credit
• 7.55% for housing
• 11.01% for leasing
These ceilings are intended to regulate banking competition and protect borrowers.
This new framework follows a decision by the Bank of Algeria, which lowered the key interest rate (from 3% to 2.75%) and the reserve requirement ratio (from 3% to 2%) in August 2025 in response to falling inflation and robust non-hydrocarbon economic growth.
The Bank of Algeria also emphasizes that the banking system's strong performance—in terms of capitalization, liquidity, and profitability—justifies an intensification of financial intermediation and an increase in lending to the economy. Despite continued high risk aversion, banks have significant scope to increase their lending. In 2024, total outstanding bank loans grew by 5.3%.
January 4, 2026 | 
Popular Articles
