Nicosia:A slight decline in average interest rates on housing loans was recorded in Cyprus in September 2026 compared with the previous month, while interest rates on business loans experienced an increase, based on data released by the Central Bank of Cyprus (CBC).

According to Cyprus News Agency, interest rates on deposits from both households and businesses showed a significant increase during the same period.

The CBC data indicated that the average interest rate on loans to euro area resident households for house purchases in euro (new business - new contracts), irrespective of the initial rate fixation period, dropped to 3.24% in September 2026 from 3.31% in August 2026. The euro area average was 3.64%, slightly up from 3.62% the previous month.

The highest housing loan interest rate in September 2026 was offered by the Housing Finance Corporation at 3.55%, which was an increase from 3.41% in August 2026. This was followed by Bank of Cyprus at 3.37%, down from 3.54%, Ancoria at 3.27%, compared with 3.28%, Eurobank at 3.21%, up from 3.15%, and Alpha Bank Cyprus at 2.80%, compared with 2.78%.

The average interest rate on new loans to euro area resident businesses of up to one million pounds, in euro and irrespective of the initial rate fixation period, rose to 4.67% in September 2026, from 4.39% in August 2026. The highest rate was recorded by the Cyprus Development Bank at 7.90%, up from 5.48%, followed by Banque SBA at 7.46%, compared with 7.16%. The lowest rates were offered by Alpha Bank Cyprus at 4.28%, up from 4.16%, and Eurobank at 4.34%, compared with 4.19%.

For household deposits, the average interest rate with an agreed maturity of up to one year rose to 1.62% in September 2026, compared with 1.35% in the previous month. The corresponding rate in the euro area increased to 2.33%, from 2.13% in August 2026. Ancoria Bank offered the highest rate at 1.88%, up from 1.36% in August, followed by National Bank of Greece at 1.83%, compared with 1.69%, and Eurobank at 1.70%, up from 1.39%.