Introduction
The interest rate reduction cycle initiated by the Bank of Mexico (Banxico) in March 2024 has lowered the reference rate to 7.0%. This decrease is reflected in some credit products offered by banks, primarily personal loans, although they remain the most expensive due to their characteristics.
Personal Loans
According to the Transparency and Competitiveness Portal of the Mexican Financial System by Banxico, while the average interest rate for personal loans was 47.8% in February 2023 (when the target rate was 11.0%), it dropped to 42.01% in August 2025, a reduction of nearly 6 percentage points.
Comparison with Other Credit Products
However, the rate reduction cycle has not shown the same magnitude in other consumer credit products.
- Credit Cards: The average interest rate for credit cards was 38.38% in February 2023 and slightly decreased to 38.31% in June 2025, according to Banxico data.
- Salary Loans: The average interest rate for salary loans was 27.48% in February 2023 and marginally decreased to 27.21% in August 2025.
- Auto Loans: The interest rate for auto loans dropped from 14.35% to 14.16%.
Variability Among Financial Institutions
Although the average interest rate for personal loans offered by banks was 42.01% in August 2025, it varies depending on the institution. For instance, Inbursa (22.86%), Multiva (23.66%), and BBVA (27.08%) had the lowest rates for this product by August 2025, as per Banxico data.
The interest rate also depends on other factors, such as the loan amount; smaller loans typically have higher interest rates, and larger loans have lower rates.
Characteristics of Personal Loans
Banxico specifies that personal loans are unsecured loans provided by regulated financial institutions, which results in higher interest rates compared to other consumer credit types. These loans usually have the lowest average amounts.
Banxico further explains that, without collateral and a predefined payment source, personal loans generally carry the highest credit risk within banks’ loan portfolios.
Personal Loan Market Data
Official data indicates that, in August 2025, personal loans accounted for 16.0% of the consumer credit portfolio.
By August 2025, the total personal loans issued by regulated financial institutions amounted to 320,300 million pesos, composed of 15.2 million loans.
Banxico’s data also states that, starting September 2024, the Personal Loan Delinquency Rate (IMOR) has remained stable, reaching 4.6% in August 2025.
Key Questions and Answers
- What types of credit products are most affected by Banxico’s interest rate cuts? Personal loans have seen significant reductions in interest rates, while other consumer credit products like credit cards and salary loans have experienced smaller decreases.
- Why do personal loans remain the most expensive despite interest rate cuts? Personal loans are unsecured, leading to higher interest rates to mitigate the increased credit risk. Additionally, they typically involve smaller loan amounts.
- How does the average interest rate for personal loans vary among financial institutions? The average interest rate can differ based on the lending institution, with some offering lower rates than others.
