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Interest rate 2025
05.12.2025
Interest rates
The Banque centrale du Luxembourg (BCL) informs that, based on preliminary data, the main interest rates applied by Luxembourg’s credit institutions to euro area households and non-financial corporations (NFCs) for their loan and deposit operations have on average evolved as follows in October 2025.
Representative interest rates on new contracts[1] – loans and deposits – concluded with households
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The variable[2] interest rate on mortgage loans granted to households has increased by 1 basis point on a monthly basis to reach 3.09% in October 2025 compared to 3.08% in September 2025 and the volume of these newly granted loans has decreased by 69 million euros to reach 277 million euros in October compared to 346 million euros in September. On a yearly basis, the interest rate has decreased by 119 basis points whereas the volume of newly granted loans has increased by 74 million euros. |
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The fixed[3] interest rate on mortgage loans granted to households with an initial fixation rate of over one year and up to five years increased by 10 basis points on a monthly basis to reach 3.40% in October 2025 while the volume reached 17 million euros. The fixed interest rate with an initial fixation rate of over five years and up to ten years decreased by 6 basis points compared to September 2025 to reach 3.59%. The corresponding monthly volumes decreased by 1 million euros to reach 49 million euros. |
[1] New contracts refer to any new agreement concluded between the household or the non-financial corporation and the reporting agent. New contracts include all financial contracts which mention for the first time the interest rate pertaining to the deposit or credit and all renegotiations of existing deposits or credits.
[2] Variable interest rate or rate with an initial fixation period inferior or equal to 1 year.
[3] Fixed interest rate weighted by the amounts of contracts for all mortgage loans granted, whatever the initial rate fixation period (above 1 year). This series has been published by the BCL since February 2009 only for methodological reasons linked to the identification of reporting agents.
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It is important to mention that the indicated rates of the different interest rate fixations are average rates, where the calculations are based on a sample of banks and which are taking into account the volumes of granted loans.
The interest rate on consumer loans that have an initial fixation period above 1 year and below or equal to 5 years has decreased by 2 basis points since September to reach 4.62% in October 2025. The volume of newly granted loans has increased by 6 million euros to reach 31 million euros in October compared to 25 million euros in September. On a yearly basis, the interest rate has decreased by 20 basis points whereas the volume of new lending has increased by 4 million euros.
The interest rate on households’ fixed-term deposits that have an initial maturity below or equal to 1 year has reached 148 basis points in October 2025 from 158 basis points in September 2025. On a yearly basis, this rate has decreased by 128 basis points.
[1] Following an update of the statistical data collection, since December 2022 the BCL has been collecting a breakdown of interest rates with an initial fixation rate of over 10 years in five-year intervals.
The following graphs provide a detailed overview of the evolution of interest rates and the volumes of the new business loans. Furthermore, the evolution of the interest rates over the past two years is presented in more detail.
Representative interest rates on new contracts1 – loans and deposits – concluded with non-financial corporations (NFCs)
The variable interest rate on loans below or equal to 1 million euros granted to NFCs decreased by 4 basis points in October 2025 to 3.46%, compared to 3.50% in September, and the volume has increased by 2 million euros to reach 125 million euros in October from 123 million euros in September. On a yearly basis, this interest rate has decreased by 72 basis points and the volume of newly granted loans has increased by 30 million euros.
The variable interest rate on loans above 1 million euros granted to NFCs has increased by 7 basis points on a monthly basis to 2.99% during the last reference period, compared to 2.92% in September. The volume of newly granted loans has decreased by 393 million euros to reach 2 280 million euros in October compared to 2 673 million euros in September. On a yearly basis, this interest rate has decreased by 57 basis points and the volume of newly granted loans has increased by 762 million euros.
The interest rate on fixed-term deposits of NFCs with an initial maturity below or equal to 1 year remained stable at 1.91% in October 2025. On a yearly basis, this interest rate has decreased by 113 basis points.
The tables pertaining to interest rates applied to credit institutions can be consulted and/or downloaded on the BCL’s website on the following link:
https://www.bcl.lu/en/statistics/series_statistiques_luxembourg/03_Capital_markets/index.html
Weighting method
The interest rates applied to new contracts are weighted within the categories of instruments concerned by the amounts of individual contracts. This results from the compilation of national aggregates carried out by reporting credit institutions and by the BCL.
