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KREDO and IUTE dig deep into citizens' pockets, over 31 percent loan interest

2026-08-18 12:21:12Fokus SHKRUAR NGA REDAKSIA VOX
Iute Credit and Kredo.al (Illustrative photo)

Although the restrictive interventions of the Bank of Albania have led to a reduction in the interest rates applied by microcredit companies, they still remain at ruinous levels.

Iute, the largest microfinance company in Albania, reported that the average interest rate on new loans disbursed during the first quarter of this year was 31.7 percent on an annualized basis, down from 36.5 percent in the same period last year.

Consolidated data at the group level show that Albania continues to remain the main storehouse and the market with the highest profit for Iute, a company that has activity in four countries.

At the end of last year, Iute had a loan portfolio of 104 million euros in Albania.

According to the data, this loan portfolio generated more than 37 million euros in interest and commission income, placing Albania as the main source of profits, while Moldova ranked second, where Iute generated 23.5 million euros in income.

KREDO and IUTE dig deep into citizens' pockets, over 31 percent loan
Interest income, Iute

Meanwhile, for the first quarter of this year, Iute reported that interest income in Albania was 9.25 million euros, an increase of 3.3 percent compared to the first quarter of last year. 

The combing continues.

Iute and Kredo are the two lending companies with the highest interest rates in Albania. Currently, the average interest rate for loans provided by these two companies is over 31 percent per year, or 5 times the average interest rate on bank loans.

Due to high interest rates, a large number of citizens who receive loans from microfinance institutions fail to repay them on time, entering a cycle of devastating debt. Some of them go through enforcement proceedings, while others renew their debt with new debt.

The microcredit scandal in Albania culminated two years ago with the explosion of the MCA scheme, which led to the alienation of the properties of thousands of Albanian families, most of them secretly. But despite the great social drama, the expensive microcredit business continues to grow at an aggressive pace.

According to data from the balance sheets, Iute and Kredo reported that last year they registered more than 350 thousand applications for new loans, approving 262 thousand of them./ kapitali.al


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