Citizens of Montenegro are increasingly taking on bank debt, primarily through non-purpose cash loans and mortgages. While banks highlight favorable conditions and lower interest rates, consumer protection groups warn that many borrowers remain insufficiently informed.
Non-purpose cash loans are the most in-demand, accounting for about 45% of total loans. Mortgages make up slightly over 35%, while refinancing loans account for around 7.8%, with these percentages fluctuating quarterly. Average monthly payments are roughly 200 euros for cash loans, 236 euros for refinancing loans, and 410 euros for mortgages with the lowest interest rates.
Banks are aligning their processes with international standards, and digitalization has accelerated loan approvals. Access to the Tax Administration database allows faster verification of income and tax compliance, which affects credit approvals.
Consumer protection organizations note that borrowing has increased significantly compared to last year, with an approximate 45% rise in demand. At the same time, the number of borrowers failing to repay loans on time has decreased.
Experts emphasize that responsible borrowing relies on thorough understanding of loan terms. Consumers must be well-informed about obligations and repayment conditions to ensure that loans do not become financial burdens.
Despite more favorable lending conditions, education, realistic assessment of repayment ability, and careful planning remain crucial for safe borrowing.
