Business loans: fewer credit applications in view of uncertain economic climate
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In the first quarter of 2025, there were 8.2% fewer business loan applications than in the same period in 2024. The number of loans granted rose slightly by 1.2%. Business lending therefore stabilised in the first quarter of 2025.
In the first quarter of 2025, higher loan amounts were requested and granted than in the same quarter last year. The amount of loan applications rose by 16.0%. The amount of new loans granted rose by 19.3%. This can mainly be explained by a few large credit lines that were granted.
At the end of March 2025, the outstanding volume of corporate loans was 3.0% higher than a year earlier, amounting to 195.9 billion euros.
Although the rejection rate in the first quarter of 2025 is slightly higher than in the first quarters of 2023 and 2024, it remains at a low level.
Credit demand and production increase in amount
In the first quarter of 2025, entrepreneurs applied for 8.2% fewer credits than in the same period last year, but the amount requested was higher. The amount requested rose by 16.0%.
The number of credits granted in the first quarter of 2025 rose slightly compared to the same quarter last year, specifically by 1.2%. The amounts granted were 19.3% higher than in the same quarter last year.
The loans granted therefore increased much more sharply in terms of amount than in terms of number. One explanation for this is that a bank granted a number of very large credit lines in the first quarter of 2025.
Outstanding amount of corporate loans at a high level
At the end of March 2025, the outstanding amount of corporate loans, including commitment loans, was 195.9 billion euros, which was 3.0% more than a year earlier.
These include, for example, guarantee credits or documentary credits.
Entrepreneurs experience slightly more credit barriers
The rejection rate in the first quarter of 2025 was slightly higher than in the first quarter of the previous two years, although it remains at a low level.
The results of the quarterly survey conducted by the National Bank of Belgium (NBB) on the perception of credit constraints among businesses also indicate that banks have slightly tightened their credit conditions. The proportion of businesses that considered credit conditions to be unfavourable fell to a low of 11.2% in January 2025. In April 2025, this figure rose to 15.5%.
Perceptions began to rise sharply at the end of 2021, largely due to the increase in interest rates. Since the end of 2023, interest rates have fallen slightly.
The slight increase in the rejection rate and perception of credit constraints among businesses could indicate that banks have become more cautious given the uncertain economic climate in recent months.
Interest rates have fallen further
The weighted average interest rate on new business loans peaked at 4.66% in November 2023. By March 2025, that rate had already fallen to 3.62%.
