Tunisia – Honor Loans: Who Has Priority and Under What Conditions? Banking Law Lecturer Mohamed Nkhili Provides Clarifications (Video)

The digital platforms set up by banks to receive applications from individuals wishing to benefit from interest-free honor loans will become operational as of October 1, 2026. The platform records the date and time when an application is submitted and issues the customer with a receipt, thereby ensuring that applications are ranked according to the order in which they are filed.

University lecturer in banking law Mohamed Nkhili explained, in a statement to Tunisia Numérique, that access to honor loans, granted by the banks concerned in the form of interest-free advances, is subject to a set of conditions and criteria determining the beneficiaries, as well as each bank’s capacity to grant such loans.

Mohamed Nkhili specified that the first condition concerns the amount of funding each bank allocates to honor loans. This has been set at 8% of the profits generated by the bank during the 2025 financial year, given that not all banks have the same capacity to provide such loans.

The banks concerned by honor loans are all commercial banks that recorded profits during the 2025 financial year. Banks that did not report any profits, however, are excluded from establishing a dedicated financing facility for honor loans.

Submitting an Application Does Not Mean the Loan Will Be Granted

According to Mohamed Nkhili, and in accordance with Central Bank of Tunisia Circular No. 08 of 2026 and Decree No. 148 of 2026 dated July 23, 2026, concerning the conditions and criteria for granting honor microfinance, customers who submit their applications through the platform as of October 1, 2026 will receive priority in the processing of their applications.

However, according to the banking law professor, this priority does not necessarily mean that the applicant will have priority in obtaining the loan. The applicant must first meet all the required conditions, after which the application will be reviewed within 10 days.

Repayment Capacity: A Key Requirement

Mohamed Nkhili stressed that one of the main conditions for obtaining an honor loan is having sufficient repayment capacity, in addition to the requirement that the applicant be a customer of the bank.

It is also required that the monthly installment corresponding to all loans being repaid by the customer, including the honor loan, not exceed 60% of their monthly income.

Regarding withdrawals from a bank account in the absence of sufficient funds, up to an amount previously agreed with the bank—a practice known in Tunisia as a “rouj”—Mohamed Nkhili explained that this does not constitute an obstacle to obtaining an honor loan, provided that the customer has sufficient capacity to repay it.

Concerns Over a Rise in Non-Performing Loans

In this context, the university lecturer in banking law indicated that total non-performing and unpaid loans backed by guarantees stood at 15.5%, while the ceiling set by regulatory standards is 7%. He added that the proportion of non-performing and unpaid loans could rise further once the honor-loan mechanism comes into force.

Honor Loans and Islamic Finance

Regarding their compatibility with the principles of Islamic finance, Mohamed Nkhili stated that honor loans are not incompatible with Islamic finance standards, considering that an honor loan falls under the concept of a “Qard Hassan” (interest-free loan).

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