Top 10 countries with lowest interest rates for business & investment in 2025

For entrepreneurs and investors, securing affordable financing can be the difference between stagnation and expansion. In today’s global economy, some countries offer remarkably low interest rates, making them prime destinations for business loans, startup funding, and large-scale investments.

From the Pacific islands to European financial hubs, this list explores countries where central banks have maintained ultra-low interest rates, some below 1%, creating ideal environments for capital growth.

According to Trading Economics, here are the Top 10 countries with the lowest interest rates for business & investment in 2025

1. Fiji – 0.25%
Fiji isn’t just a tropical paradise, it’s also one of the best places in the world to secure low-interest business financing. With a policy rate holding steady at 0.25% as of April 2025, borrowing costs here are among the lowest globally, as the Pacific’s best-kept secret for cheap loans. This tiny island nation has maintained this rate since the pandemic, fostering a business-friendly climate ideal for tourism ventures, agriculture, and export-oriented startups.

Read Also: Here are African countries with the lowest cost of living in 2024

2. Switzerland – 0.25%
Known for its financial stability, Switzerland continues to offer a rock-bottom interest rate of 0.25%, unchanged from previous months. The Swiss National Bank’s conservative monetary policy ensures that businesses and investors enjoy predictable, affordable credit. Whether you’re launching a fintech startup in Zurich or investing in luxury goods, Switzerland’s low rates make capital accessible, known as Europe’s ultra-low borrowing haven.

Read Also: Here are banks that offer 7.4% interest rate on deposits

3. Japan – 0.5%
Japan has long been a leader in low-interest economies, with the Bank of Japan maintaining a 0.5% rate as of May 2025. This policy supports everything from robotics startups to real estate investments, making it a hotspot for tech entrepreneurs and corporate expansions. The country’s deflationary tendencies keep borrowing costs minimal, though inflation trends are worth monitoring.

Read Also: Five big companies enjoying Nigeria’s low-interest rate

4. Cambodia – 0.78%
Cambodia’s Southeast Asia’s rising star for affordable capital with 0.78% interest rate (up slightly from 0.77% in January 2025) reflects its rapidly growing yet low-cost financial landscape. The country is a magnet for manufacturing, textiles, and agro-businesses, with microfinance institutions offering competitive loans to small and medium enterprises (SMEs).

5. Seychelles – 1.75%
This Indian Ocean archipelago isn’t just for honeymooners, it’s also a hidden gem for investors. Seychelles’ steady 1.75% rate (unchanged since April 2025) supports tourism ventures, offshore banking, and sustainable development projects. The government actively encourages foreign investment, making it an attractive option for entrepreneurs seeking low-cost financing in a tax-efficient jurisdiction.

6. Thailand – 1.75%
Thailand’s central bank cut rates to 1.75% in April 2025 (down from 2%), signalling a push to stimulate post-pandemic recovery. This makes Bangkok, Chiang Mai, and Phuket even more appealing for hospitality startups, e-commerce, and export businesses. With a strong infrastructure and investor incentives, Thailand remains a top choice for affordable capital in Asia.

7. Denmark – 1.85%
Denmark’s 1.85% rate (down from 2.1% in April 2025) reflects its strong yet flexible monetary policy. Known for its high standard of living and innovation-driven economy, Denmark is ideal for green energy startups, biotech firms, and sustainable ventures. Mortgage rates here are also among the world’s lowest, benefiting real estate investors.

8. Botswana – 1.9%
Botswana’s stable 1.9% interest rate (unchanged since April 2025) makes it one of Africa’s most business-friendly nations. With a robust diamond and mining sector, plus growing opportunities in renewable energy and tourism, Botswana offers a rare blend of low borrowing costs and high-growth potential.

9. Barbados – 2%
Barbados combines sun, sand, and a steady 2% interest rate, making it a hotspot for offshore banking, luxury real estate, and tourism investments. The government’s business incentives, coupled with low loan costs, attract entrepreneurs looking for a tax-efficient base in the Americas.

10. Taiwan – 2%
Taiwan’s 2% rate (held steady in 2025) supports its booming semiconductor, AI, and electronics industries. Taipei and Hsinchu are magnets for tech entrepreneurs, with banks offering favourable terms for startups and R&D projects.