Surprisingly enough, interest rates on consumer loans in Cyprus are well below the eurozone average, according to latest figures by Eurostat.
The island’s loan and deposit interest rates for housing and business have declined steadily in recent years but are still higher than in other countries. With the exception of consumer loans which bear a floating interest rate.
In fact, consumer loans record a continuous reduction in costs in Cyprus since December 2017 when they were close to the eurozone average (4.25% -4.5%).
They had reached a historical low of 2.75% early in 2019. And even though they have risen to 3.5% over the last couple of months, they are still much lower than European ones which are above 5%.