The Government has launched one of the most ambitious reforms in recent years in the area of consumer loansThrough a draft bill approved by the Council of Ministers, the Executive proposes for the first time to set a clear limit on... cost of these loanswhich have skyrocketed in popularity among households and in many cases are granted with particularly burdensome conditions.
This new regulation aims to address the exorbitant interest rates of products such as microloans, revolving credit cards, or quick online loans, while strengthening the protection of the most vulnerable consumers. The text transposes the european directives on consumer credit and remote financial services, and is accompanied by a royal decree that will specify the applicable ranges and maximum limits.
General limit on the cost of consumer loans
The heart of the reform is the creation of a general cost limitation regime for all consumer loans. The maximum price that a lender can charge will be set in terms of APR (annual percentage rate), based on the average interest rate on consumer credit published periodically by the Bank of Spain, plus a margin that varies according to the loan amount.
In practice, this means that each quarter will be established differentiated limits depending on the amount requested. For amounts up to 1.500 euros, a surcharge of up to 15 percentage points on the average rate will be allowed; for loans between 1.500 and 6.000 euros, the margin will be 10 points; and for loans of more than 6.000 euros, two tiers are set, with 8 points if the maturity is less than 8 years and 6 points if it exceeds that period.
In this way, the maximum permissible APR will decreasing as the amount increases and the loan term. The aim is to prevent small personal loans and short-term financed purchases from carrying interest rates similar to those of very high-risk products, something that until now was common in certain market segments.
These limits, the Ministry of Economy emphasizes, They will be updated quarterly These guidelines will be published in advance so that consumers and organizations can know beforehand the framework that will apply in each period. The aim is to create a more predictable and transparent environment for all parties involved.
While the royal decree specifying these sections is being approved, the preliminary draft establishes a transitional limit of 22% APR applicable to all new consumer credit transactions signed after the law comes into force. This time limit will also apply to liquidation of revolving credit cards existing ones, one of the major sources of conflict due to their accumulated interests.
A halt to microloans and high-cost loans
One of the areas where the Government wants to be more forceful is that of the microcredits and high-cost loansLow-value products, very short terms and extraordinarily high rates, which have proliferated thanks to digital platforms and the immediate granting of money.
According to calculations by the Ministry of Economy, the stock of this type of financing is around 0,5% of the total credit, about 500 million euros, but it represents close to 10% of operationsIn other words, these are many small loans, often granted to low-income households that cannot access traditional bank credit.
The preliminary draft creates a second specific regime for these high-cost loans. The first major change is that a minimum repayment period of three months, spread over at least three monthly installments. This eliminates microloans that were repaid in full in 30 days or even less, which could be linked together and generate a spiral of over-indebtedness.
As for the price, the interest rate will be capped at one maximum monthly of 4%and a maximum commission of 5% of the borrowed amount, with an absolute limit of 30 euros. In addition, the total cost of these products can never exceed that of a 12-month loan for the same amount under the general scheme, which introduces an additional cap.
To illustrate the impact of the change, the Government uses a very common case in this market: a microcredit of 300 euros for 30 daysCurrently, this type of transaction involves an average cost of around €103 for the customer, with APRs that can easily exceed 3.000%. Under the new rules, this same loan must be repaid in at least three months, and its The total cost cannot exceed 40 eurosIf the consumer decides to make an advance payment and settle the debt within a month, the maximum amount that could be paid in expenses would be 20 euros.
The design of the specific regime aims, in the words of the Executive, to fundamentally transform the market High cost: the possibility of accessing urgent financing for small amounts is maintained, but the price that can be charged is drastically limited and unique payment structures that drove up the APR are avoided.
Greater protection, information and control over advertising
Along with the economic limits, the reform incorporates a package of measures to strengthen consumer protection in all phases of the loan: from advertising and the initial offer to the signing and the eventual early repayment.
Entities that offer microloans or high-cost products must provide a specific and reinforced information at least 24 hours before the client accepts the loan. This allows a realistic window of time to review the terms and avoid impulsive decisions based solely on the urgent need for cash.
In terms of advertising, the text is especially clear: advertisements for these credits are prohibited from highlighting above all else the speed or ease of grantingCommercial communication will have to highlight elements such as the interest rate, the total cost of credit or the repayment period, so that the consumer has the most relevant aspects in view before signing a contract.
Pre-contractual information is also protected. It is required that essential elements of the contract (type, fees, APR, terms, consequences of non-payment, etc.) appear concentrated and highlighted on a single page, easy to read, to make it easy for any user to understand the implications of the loan without having to delve into the fine print.
Furthermore, the preliminary draft creates the figure of the debt counseling servicesThese organizations will be able to offer financial assistance, legal support, and even psychological and social support to debtors in difficulty. The idea is to provide resources for people already trapped in a precarious situation, enabling them to organize their finances and negotiate potential solutions.
They are also reinforced Consumer rights This applies when a customer decides to prepay a loan, as well as in the combined or tied sale of loans with other financial products, especially insurance. The aim is to curb abusive practices and ensure that any additional contracts truly serve the customer's interests and are not a disguised imposition.
Only authorized entities: central role of the Bank of Spain
Another pillar of the reform is the strengthening of the oversight of who can grant credit to consumption. Until now, virtually any operator could lend money without being subject to the direct control of the Bank of Spain, which had opened the door to numerous unregulated companies.
Under the new regulation, only consumer loans will be granted by registered and supervised financial entities by the banking supervisor. Contracts signed with operators who do not have the proper authorization will be considered nullThis adds a powerful incentive for all players to abide by the rules of the game.
To accommodate existing non-bank providers and maintain a degree of competition, two new entities are created: the Limited Scope Financial Credit Establishments (EFCAL) and authorized high-cost lenders. The former will have a simplified regime, inspired by that of traditional financial credit establishments, but without the same prudential requirements, so that they can operate with fewer regulatory burdens.
In the case of authorized high-cost lendersIts activity will be limited precisely to high-cost loans, with the intention of professionalizing a segment that until now remained in no man's land and in which opaque business models predominated.
At the same time, lenders will be required to stricter solvency assessmentChecking a customer's credit history will be mandatory depending on the type of loan or the amount, and in the specific case of high-cost products, this verification will always be required. The aim is to prevent granting financing to those who clearly cannot afford it, thus reducing the likelihood of chronic over-indebtedness.
Another consequence of this new framework is that companies that sell other goods or services, such as car dealerships or large stores Furniture and appliance retailers will only be allowed to offer financing to their customers if it consists of interest-free loans. In other words, they cannot act as traditional lenders charging high interest rates for financing their own sales.
Market context and reform timeline
The government's decision comes at a time when the Consumer credit is at its highest point In Spain, according to data from the Ministry of Economy, this segment already represents around 15% of total household credit and nearly 7% of credit to the resident private sector. In November 2025, the outstanding balance of these loans reached just over €114.000 billion, with year-on-year growth exceeding 10%.
The Minister of Economy, Carlos Cuerpo, has admitted that, although a widespread problem of over-indebtedness is not observed, some areas have been identified very delicate specific casesespecially those linked to microloans and other high-cost products. That's why the government wants to get ahead of the curve and act preventively, before the situation worsens.
In parallel, the digitalization of the financial sector This has facilitated the emergence of new players and business models, many of them entirely online, allowing users to apply for and receive a loan in minutes via mobile phone. This convenience has often been accompanied by a lack of transparency in the terms and conditions, interest rates far exceeding those of traditional banks, and minimal oversight of users' actual ability to repay.
The reform is not limited to the national level, but also serves to transfer to the Spanish legal system the European directives on consumer credit and remote financial servicesAmong other aspects, these community regulations require strengthening the information provided to users when they purchase financial products online and combating so-called dark patterns, that is, page designs that push the consumer to accept conditions almost without realizing it.
The draft bill and the draft royal decree that implements it have already been sent to public audienceFrom now until January 30, the various stakeholders in the sector—financial entities, consumer associations, specialized firms and other actors—can submit comments and proposals for improvement on the text.
Once that consultation phase is over, the regulation must return to the Council of Ministers and subsequently begin its parliamentary procedureThe entry into force of the definitive limits will ultimately depend on the approval deadlines of the royal decree that will set the specific maximum APR brackets for each loan category.
The new framework promoted by the Government opens a new stage in which the consumer loans They will continue to be a key tool for financing purchases and specific liquidity needs, but under clearer rules: a defined ceiling on interest rates, less aggressive microloans, more transparency in advertising and information, and the added security that only authorized and supervised entities will be able to operate in this market.
