Mauritius: Growth in housing loans continues
The growth in home loans continues to be the main driver of household credit in Mauritius, according to the new Bank of Mauritius (BoM) report called Financial Stability.The growth in home loans continues to be the main driver of household credit in Mauritius, according to a new Bank of Mauritius (BoM) report called Financial Stability.
Housing credit has increased by 21.5 percent in June 2011, compared with 16.5 percent in June 2010, L'Express de Maurice newspaper quotes the document as saying.
These numbers are a sharp contrast to the amount of consumer credit, professional loans or credit cards, which are now largely below the number of housing loans.
In June 2011, around 60 percent of the loans granted to households were housing loans and 37.8 percent were consumer and professional credits.
This is because, in a difficult economic environment, banks tend to provide more housing loans than consumer credit, as these are usually backed up by assets that have more value than the loan itself.
Many of the families in debt are indeed households with revenues superior to $1,000 (€729) per month, Xinhua news agency reports.
The competition on interest rates on housing credit adds to the vitality of the market, according to the report.