Overview
- Spain’s Cabinet approved an anteproyecto that sets a provisional 22% APR ceiling for new consumer loans and revolving cards, beginning an uncertain parliamentary process.
- The framework introduces tiered limits tied to the market average: up to 15 percentage points above the average for loans under €1,500, 10 points for €1,500–€6,000, and 8 points above €6,000, with the Bank of Spain publishing caps each quarter after the transition.
- Microloans face a special regime with 4% monthly interest, an opening fee capped at 5% up to €30, and a minimum three‑month term; a €300 loan would face a maximum cost of €40, or €20 if repaid in 30 days.
- Lenders must give reinforced pre‑contract information at least 24 hours in advance, advertising cannot emphasize speed or ease of access, and high‑cost lenders must check credit histories.
- Only registered entities supervised by the Bank of Spain may grant most consumer credit, retailers offering finance must do so interest‑free, and the push follows a 20% rise in lending from January to October 2025 to €37.9 billion with monthly originations above €4 billion since July.