The outstanding consumer loans and advances in the country's banking sector maintained an upward trend over the last two quarters of 2025, according to Bangladesh Bank (BB) data.
The volume of aggregate consumer credit exceeded Tk 1.50 trillion at the end of third quarter (July-September) of 2025, up from Tk 1.40 trillion in the same quarter of 2024. The amount reflects a year-on-year (YoY) growth of 7.1 per cent.
The BB data also shows that the amount of consumer loans reached Tk 1.73 trillion at the end of April-June quarter of 2025, compared to Tk 1.37 trillion in April-June of 2024. This marks a robust 26.3 per cent year-on-year increase.
The figures indicate a sustained rise in consumer lending, with significantly stronger growth in the April-June 2025 quarter.
Consumer loans cover a wide range of categories, including doctors' and professional loans, flat purchase loans, transport loans (motor cars and motorcycles), and financing for consumer goods such as televisions, refrigerators, air coolers, computers, and furniture.
They also include credit cards, education expenses, medical treatment expenses, land purchase loans, loans against salary, provident fund, DPS, MSS, FDR, MBS, and DBS. Additionally, travelling or holiday loans and other personal loans fall under this segment.
According to the BB data, of the total consumer loans until September 2025, the volume of loans for doctors loan/ professional loans stood at Tk 10.02 billion.
Borrowing through flat purchase was Tk 30.78 billion during July-September 2025, the BB data showed.
The consumer loans on account of purchase of TVs, refrigerators, and computers reached Tk 357.20 billion as of September 2025.
Although consumer loans are used for purchasing luxury or household items, such loans are now used for education, medical expenses, marriage, travel, and even professional purposes. Keeping this in view, banks are also offering increased volumes of consumer loans at higher rates of interest.
According to experts, though consumer loans give some temporary relief to families, it creates an extra burden on them in the long run.
If investment does not increase in the productive sector, the country's employment and economic growth could be affected, they observed.
Dr. Masrur Reaz, Chairman of Policy Exchange Bangladesh, said the rise in consumer lending at a time of high inflation and sluggish employment growth highlights growing pressure on household incomes.
"Families are increasingly relying on credit to meet essential needs, which raises long-term financial risks," he said.
He warned that if more credit continues to flow into consumption instead of productive sectors, it could slow job creation and overall economic growth.
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