As of March 2025, the total debt of individuals in Montenegro—including loans, leasing, credit cards and overdrafts—reached €2.23 billion, marking a 19% increase (€361 million) compared to March 2024, according to data from the Central Bank of Montenegro (CBCG).
Dividing this amount by approximately 490,000 adult residents, the average debt per person is around €4,500. The rapid increase is notable, as the total debt was €1.55 billion just three years ago in 2022, meaning a 44% growth in that period.
The largest portion of debt is cash (unsecured) loans, accounting for 43% of the total portfolio (€942.6 million), followed by housing loans with a 33% share (€734.7 million). Auto loans and credit cards each represent about 1%.
CBCG highlights a growing trend in housing loans over the past three years, indicating an increased focus on addressing housing needs.
A key driver of increased borrowing has been the decline in effective interest rates. Since mid-2024, all banks have adopted CBCG’s initiative to reduce rates on popular loans. By March 2025, the average effective interest rate on new loans to individuals dropped to 6.98%, with a first-quarter average of 6.96%—the lowest on record.
Moreover, the share of loans with variable interest rates fell sharply from 21.39% in March 2023 to just 7.78% in March 2025, reducing borrowers’ exposure to market fluctuations.
In summary, while personal debt is growing rapidly, loan conditions are improving with lower rates and a shift toward long-term loans with fixed installments. Housing loans are rising, but cash loans remain the most common form of consumer credit.
