The household debt in Mauritius has continued to rise, with bank credits to households reaching Rs 220.3 billion as of September 2026. This represents a 12.6% increase from the previous year. Since the beginning of 2026, the outstanding amount has grown by Rs 18.4 billion. The data, released by the Bank of Mauritius, highlights the growing reliance of households on bank financing.
Mortgages constitute the largest component of household debt, standing at approximately Rs 154.6 billion, which accounts for nearly 70% of the total debt. Other types of credits, including personal and consumer loans, amount to around Rs 65.7 billion. This increasing trend in household debt raises concerns about the impact on the purchasing power of families. As households take on more debt, their monthly repayments may reduce their disposable income for essential expenses.
According to the Household Budget Survey 2023 conducted by Statistics Mauritius, households with debt dedicated an average of Rs 11,118 per month to debt repayment, up from Rs 8,289 in 2017. While mortgage financing enables many families to purchase or build homes, accumulating debt can strain household budgets, especially when income growth does not keep pace with expenses.
The surge in household debt has significant implications for the overall economy. As households allocate a larger portion of their income towards debt servicing, they may have to adjust their spending patterns, potentially affecting consumption and economic growth. Furthermore, a rise in debt levels can increase the vulnerability of households to financial shocks.
The Bank of Mauritius's data suggests that the growth in household debt is largely driven by the increasing demand for housing finance. However, this trend also underscores the need for households to carefully manage their debt levels and for financial institutions to maintain prudent lending standards.
Exceeding the Rs 220 billion threshold does not necessarily mean that all households are experiencing financial difficulties. Nevertheless, it highlights the importance of monitoring debt sustainability and the ability of households to cope with unexpected expenses. Policymakers and financial regulators will likely be closely watching these trends to ensure that household debt remains manageable.
The Mauritian economy's resilience will depend on various factors, including the growth of household income, interest rate movements, and the overall performance of the financial sector. As the situation continues to evolve, stakeholders will need to assess the potential risks and opportunities arising from the growing household debt.
Key points
- Household debt in Mauritius has grown by 12.6% to Rs 220.3 billion as of September 2026.
