- Private-sector lending reached MVR 41.34 billion in July, up 15.9% year-on-year, or MVR 5.68 billion.
- Construction loans surged 49.2% to MVR 9.38 billion, driving more than half the annual increase.
- Tourism, construction and personal loans made up nearly 77% of credit; agriculture, fishing and manufacturing stayed under 1%.
Growth in private-sector lending in the Maldives was concentrated heavily in construction and personal borrowing during the year to July, rather than being distributed evenly across the economy.
Outstanding private-sector loans from banks and other deposit-taking institutions reached MVR 41.34 billion in July, according to the Maldives Monetary Authority’s Monthly Statistics. This was MVR 5.68 billion higher than in July 2025, representing annual growth of 15.9%.
The figures measure the amount borrowers owed at the end of the month and should not be interpreted as the value of new loans issued during July.
Construction was responsible for more than half of the annual increase. Outstanding construction loans rose by MVR 3.09 billion to MVR 9.38 billion, recording year-on-year growth of 49.2%.
The increase made construction the second-largest lending category after tourism. It accounted for 22.7% of private-sector loans in July, up from 17.6% a year earlier.
Tourism remained the largest recipient of private credit, with outstanding loans of MVR 13.21 billion. The sector accounted for 31.9% of the total, although its loan balance grew at a more moderate annual rate of 5.3%.
Personal loans increased by MVR 1.18 billion over the year to reach MVR 9.20 billion. This represented annual growth of 14.7%, with personal borrowing accounting for approximately 22.3% of private-sector loans.
Together, tourism, construction and personal loans represented nearly 77% of outstanding private credit. The three categories were also responsible for approximately 87% of the overall increase recorded over the year.
The concentration shows that the 15.9% increase in private credit was driven primarily by a limited number of lending categories, rather than comparable growth across different parts of the economy.
Loans to fishing stood at MVR 237.3 million, while manufacturing received MVR 67.3 million and agriculture accounted for MVR 10.6 million. Combined lending to the three sectors amounted to MVR 315.2 million, representing less than 1% of total private-sector credit.
Commerce loans were comparatively higher at MVR 3.22 billion and increased by 10.2% year-on-year. Real estate lending declined by 1.1% to MVR 3.47 billion, while loans for transport and communications fell by 6.3% to MVR 579.1 million.
The expansion in credit occurred alongside a decline in borrowing costs. The weighted average interest rate on local-currency private-sector loans fell from 11.67% in July 2025 to 10.39% in July 2026.
Banking-sector asset quality also improved over the period, with non-performing loans falling from 7.3% to 3.7% of total gross loans.
Overall, the figures show that construction was the main source of additional private credit during the year, while tourism continued to hold the largest share of outstanding loans. Lending to agriculture, fishing and manufacturing remained limited by comparison.
