Euro area loan costs rise

In September 2026, the overall cost of new loans to non-financial companies in the euro area rose by 13 basis points, reaching 3.90%, according to the European Central Bank (ECB). This figure combines various types of financing and applies to all countries in the euro area, not just France.

Loan size affects cost increase

The increase in borrowing costs affects both large-scale financing and a category of smaller loans. These figures reflect the actual conditions banks are offering in September, but they do not represent a single rate that applies to every company in the same way.

Small and large loans see different increases

For loans of 250,000 euros or less with a variable rate and an initial fixing period of up to three months, the average rate rose by 8 basis points to 4.01%. For larger loans over one million euros with the same conditions, the rate increased by 17 basis points to 3.51%.

Differences don’t mean extra cost for small businesses

The 0.50 percentage point difference between the two categories does not automatically mean small businesses face a higher cost. Factors like the borrower’s profile, guarantees, loan duration, and purpose can vary, leading to different credit conditions across segments.

Longer fixing periods show smaller rate increases

For loans over one million euros with a fixing period of more than three months but up to one year, the average rate rose by 18 basis points to 3.96%. When the fixing period is longer than ten years, the increase is smaller, at 7 basis points to 3.81%.

Personal businesses see stable rates

For individual entrepreneurs and personal companies, the average rate for new variable-rate loans with a fixing period of up to one year remains stable at 4.36%. This suggests that the overall rise in corporate loan costs does not apply uniformly across all types of borrowers.

ECB uses weighted averages and historical data

The ECB’s rate calculations are weighted by the size of each loan, and its composite indicator uses a moving average of loan volumes over 24 months to reduce month-to-month fluctuations. This means some changes in the data may reflect shifts in the distribution of loans across countries and categories, not just price changes.

Mortgage rates remain stable, corporate rates vary

In contrast to corporate lending, the composite rate for household mortgages remained nearly unchanged at 3.62% in September. For companies, actual lending conditions depend on factors like bank offers, risk profiles, and the timing of their financial needs. Detailed data by country is available on the ECB’s statistical dashboard.