Moroccan household bad loans hit MAD 44.3 billion
Non-performing loans rose 5% year-on-year, exceeding one-tenth of total household credit.
Moroccan households owed MAD 44.3 billion in non-performing loans by the end of September 2026, a 5% increase from the previous year. Bank Al-Maghrib data shows these bad loans represent 10.9% of all credit extended to individuals, indicating borrowers' ongoing struggles to meet financial commitments. Total bank lending to households reached MAD 405.5 billion, with real estate loans at MAD 262.8 billion and consumer loans at MAD 63.8 billion.
The central bank's November report highlighted that household non-performing loans grew faster than overall lending to this group, which saw a 3.5% annual increase. While the annual growth rate of bad loans slowed to 5% in September from 6.7% in August, their total value saw a slight 0.8% decrease month-on-month. The figures raise concerns about households' capacity to manage repayments alongside daily expenses, especially for those with both housing and consumer debts.
Average lending rates for individuals fell to 5.56% in the third quarter of 2026, with housing loan rates at 4.50% and consumer loan rates at 6.68%. Despite lower average rates, the actual impact on monthly repayments varies based on individual loan terms. Total non-performing loans across both households and businesses reached MAD 105.5 billion by the end of September, a 2.3% year-on-year rise.
Why it mattersMoroccan households are facing difficulties in repaying their loans, with bad debts reaching MAD 44.3 billion.