Personal Loans and Credit Card Usage in Maldives Reach MVR 7.7 Billion

The combined total of Lui Loans (personal use loans) and credit card expenditures in the Maldives has soared to MVR 7.7 billion, marking a significant rise in consumer debt, according to the latest data released by the Maldives Monetary Authority (MMA).

In May 2025 alone, banks in the Maldives issued MVR 7.7 billion in personal loans and credit card-related credit  a sharp 20% increase compared to MVR 6.2 billion recorded during the same month in 2024.

This growing trend in consumer borrowing reflects a steady rise over the past five years, highlighting shifting financial behaviors among the Maldivian public.

The data indicates a consistent annual growth in personal debt, particularly through credit cards and Lui Loans. In 2021, the total stood at MVR 3.6 billion. By 2022, it had climbed to MVR 4.5 billion, then to MVR 5.6 billion in 2023, and MVR 7.2 billion in 2024.

As of May 2025, the figure already stands at MVR 7.7 billion, surpassing last year’s total within just five months. If the trend continues, 2025 is poised to set yet another record.

The period between 2023 and 2024 saw one of the sharpest increases, with credit card and personal loan usage rising by 40%, equal to MVR 2.1 billion. The spike suggests not just higher spending but also a possible growing dependence on short-term credit by households.

The MMA report highlights that the Bank of Maldives (BML) continues to dominate the consumer lending space, issuing the majority of Lui Loans and credit card-based credit in the country.

This central role places BML as a key player in shaping consumer borrowing patterns and financial accessibility in the Maldives.

As of mid-2025, total bank-issued loans across all sectors have reached MVR 34.5 billion. The tourism industry, a cornerstone of the Maldivian economy, holds the largest share with MVR 12 billion in loans.

However, consumer-related lending, particularly through personal loans and credit cards is quickly catching up and now ranks as the second-largest segment in terms of outstanding debt.

While rising loan figures can indicate confidence in financial institutions and improved access to credit, they also raise questions about long-term financial sustainability for individuals and families.

With debt levels increasing year after year, the need for responsible borrowing, financial literacy, and policy oversight has become more critical than ever.