Boom in mortgage, car loans as household credit sees massive expansion

Senior Minister in the Office of the President with Responsibility for Finance Dr Ashni Singh

Credit to households has nearly doubled since 2019, Senior Minister in the Office of the President with Responsibility for Finance Dr Ashni Singh said.

Responding to claims that the budget offers little for ordinary citizens, Singh told the National Assembly that household credit rose from $33.5 billion in 2019 to $66.1 billion by the end of 2025.
He said the increase reflects more Guyanese families working, earning and becoming financially secure and credit-worthy since the People’s Progressive Party/Civic returned to office.

Singh also highlighted growth in real estate mortgages, noting that total credit in that category rose from $90.6 billion at the end of 2020 to $185.4 billion by the end of 2025.

Vehicle ownership has also expanded sharply, he said, with close to 10,000 vehicles being imported every three months.
“Mr. Speaker the infrastructure that we are building out, the roads that for so long have been inadequate to handle the rapidly growing traffic, many speakers on our side of the house made reference to the fact that we now import basically 9,999 motor vehicles every three months- those are Guyanese families becoming owners of their own transportation and that didn’t happen by magic,” he emphasised.

Singh said increased access to credit reflects stronger household incomes and savings, allowing more citizens to qualify for bank loans despite what he described as conservative lending practices.
“It is important that we understand what is happening. Mr. Speaker, credit by the banking system to households- these 10,000 cars every quarter didn’t happen by magic, you have to have a good credit risk because the banks are lending other people’s savings.

At the end of 2020, total credit by the banking system for the purchase of motor cars was $10.4 billion dollars. The year before it was $9.3 billion. At the end of 2025, total credit for the purchase of motor cars is now a whopping $33.3 billion dollars, more than three times what it was in 2020,” Minister Singh told the National Assembly.

The minister said the government would continue efforts to expand economic growth and financial inclusion as debate on the 2026 Budget concluded. The National Assembly is now considering estimates of revenue and expenditure for ministries and agencies.