The Central Bank of Cyprus (CBC) announced on Friday a notable rise in both pure new loans and the total volume of new loans in September 2025, according to data published in the October 2025 edition of Monetary and Financial Statistics. The figures also indicate a stabilization in lending and deposit interest rates applied by monetary financial institutions (MFIs).
Pure new loans rose to pound 447.9 million, up from pound 245.5 million in August, while the total volume of new loans increased to pound 770.5 million, compared with pound 420.4 million in the previous month.
Increase in business and housing Loans
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New loans to non-financial corporations accounted for the largest share of new lending, reaching pound 492.5 million in total, of which pound 246.7 million were pure new loans for amounts over pound 1 million and pound 62.7 million for amounts up to pound 1 million.
Housing loans also rose, with pure new loans rising to pound 112.9 million (from a total of pound 165.4 million), compared with pound 96.3 million (from pound 144.1 million) in August.
Consumer credit showed a smaller increase, with pure new loans reaching pound 21.2 million (from a total of pound 22.6 million), compared with pound 20.4 million (from pound 21.4 million) the previous month.
Mixed trends in interest rates
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Interest rates remained broadly stable in September, showing only limited variations across loan categories.
The interest rate on consumer credit stood at 6.46%, lower than 7.09% in August.
The interest rate on loans for house purchase eased to 3.63%, from 3.91%.
The rate on loans to non-financial corporations up to pound 1 million was 4.32%, compared with 4.19% in the previous month.
The rate on loans over pound 1 million remained steady at 3.79%, down slightly from 4.30%.
Deposit rates showed similar stability, with a minor upward movement:
The interest rate on household deposits with an agreed maturity of up to one year rose to 1.10% (from 1.08%).
The rate on deposits from non-financial corporations increased modestly to 1.24% (from 1.15%).
Comparison with the Euro Area
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The loan interest rate level in Cyprus remains close to the euro area median at 3.93% for households (compared with 3.91% in the eurozone) and 4.22% for non-financial corporations (compared with 3.80%).
In contrast, deposit interest rates in Cyprus remain significantly lower than the euro area median, standing at 0.78% for households (versus 1.74%) and 1.08% for non-financial corporations (versus 1.94%).