Abi: lending to households and businesses picks up, up 3% in May
Average rate remains unchanged at 4.04%
In May 2026, the total value of loans to businesses and households rose by 3 per cent year-on-year, an acceleration compared with the previous month’s figure (+2.9 per cent), continuing the upward trend in lending that began in March 2025. This is according to the ABI’s monthly report published today. For households, this marks the seventeenth consecutive month of growth, whilst for businesses it is the eleventh consecutive month of growth in lending. In fact, in April 2026, loans to households rose by 2.6%, whilst those to businesses rose by 3.1%. The average interest rate on total loans (taken out over the years) in May stood at 4.04%, unchanged from the previous month. The average interest rate on new business loans fell to 3.51%, down from 3.56% the previous month and 5.45% in December 2023.
Arl
