Argentina consumer credit slides while Peru and Chile record mortgage gains

In May 2026 Argentina's peso‑denominated consumer credit continued to weaken, with personal loans falling 1.4% in real terms and credit‑card balances down 1.7% after nominal gains failed to offset inflation. The sector recorded its fifth consecutive month of real‑term decline, prompting banks to tighten lending amid rising delinquency rates that reached 7.2%.

Peru's central bank reported a 7.1% year‑on‑year rise in mortgage lending in the first quarter of 2026, outpacing the growth of the previous two years. The expansion is linked to stronger formal employment, lower benchmark mortgage rates around 7.9% – the lowest since 2022 – and increased supply of mid‑range housing. Micro‑enterprise credit also grew about 9%.

Chile saw a revival of its mortgage market in 2025 as average long‑term housing rates fell to roughly 4.14%, the lowest since 2021, helped by successive cuts to the policy rate and a new law subsidising interest on new‑property loans up to 4,000 UF. While banks launched attractive offers, high property prices indexed to the UF and stringent income requirements continue to limit broader access to homeownership.