Amount of new business loans doubles

An economist at Suomen Yrittäjät, the Finnish SME association, says the trend should be maintained.

Finnish banks granted new business loans (excluding for housing associations) to a total of €2.4 billion in March. This is over double the amount in the same period last year and 36% more than the March average in 2011–2024.

These figures are from the financial institutions’ balance sheet data published by the Bank of Finland.

The average interest rate on new business loans in March was 4.33%, down from 5.55% a year before.

“This is an anticipated and good piece of news, not just for current economic activity, but also for the Finland’s future growth potential,” Petri Malinen, an economist at Suomen Yrittäjät, says.

“The Finnish economy has started growing. This nascent growth must be bolstered, and Finnish companies must be encouraged to invest more and create jobs, which in turn will lift consumer confidence. The Government’s mid-term policy review decisions strengthen growth, but in addition to them, consumers’ confidence must be restored,” Malinen says.

Weak confidence hobbles consumers

In March 2025 Finnish households borrowed €1.2 billion in new mortgages, just €230 million more than in the same month last year. The average interest rate on new mortgages fell from February to 3.06% in March. The annual growth rate in the mortgage volume was -0.5%.

“Consumers’ fears about Finland’s economy and their own job prospects continue to put a brake on all kinds of spending, and the dearth of confidence means that not even the significant drop in interest rates has got consumers buying new homes,” Malinen says.

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