Personal Loans: Asset or Spending
The personal debt in Jordan increased to 14.312 billion dinars by the end of the first quarter of 2026, growing by 0.6% over three months. Despite its significant size (representing one-third of the GDP and 40% of total banking facilities), this raises questions about the nature of loan usage. The debt is mainly distributed between housing loans (5.754 billion dinars) and car loans (1.865 billion dinars), with personal loans increasing by 2.7%, while consumer loans declined by 3.6%. Credit supports domestic demand in the real estate market, car sales, and goods and services; however, the sustainability of this depends on borrowers' ability to balance repayments and spending. Indicators of portfolio quality suggest that credit risks remain under control, with a non-performing debt ratio of 5.4%, and 71% of loans having fixed interest rates, reflecting credit stability and its employment in funding household needs and long-term benefits.
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