Green loans in Mongolia reached MNT 2.54 trillion by the end of the first quarter of 2026. The banking sector reported that these loans now account for 5.7 percent of total lending. Consequently, sustainable finance continues to expand across the country’s financial system.
The weighted average maturity of these loans varied by currency. Tugrug-denominated loans had an average maturity of 62.2 months. Meanwhile, foreign-currency loans averaged 45.6 months. Furthermore, interest rates differed between the two categories. Tugrug loans carried a weighted average rate of 14.3 percent. In contrast, foreign-currency loans held a lower rate of 10.9 percent.
Most loans financed energy-efficient projects throughout the period. These projects took 58 percent of the total portfolio. Additionally, green buildings, sustainable agriculture, land use, forestry, and eco-tourism received 18.2 percent of the lending. Renewable energy projects captured 9 percent of green loans. Moreover, low-carbon transportation accounted for the remaining 7 percent.
Mongolia has set a clear target for expanding green loans. The country aims to increase their share to 10 percent of bank lending by 2030. To support this goal, the Bank of Mongolia introduced new regulations. The repayment period for certain loans now extends between 30 and 60 months.
The rise of green loans signals a strategic shift in Mongolia’s financial priorities. Banks and regulators work together to channel funds into climate-friendly activities. Therefore, the country expects more projects to receive financing under this framework. Achieving the 10 percent target will require continued momentum and supportive policies. For now, green loans remain a growing and vital segment of the lending market.
