Regulatory Alerts2024-12-25
Decision on Temporary Interest Rate Cap on Loan Agreements Concluded with Natural Person Consumers
The National Bank of Serbia issued this Decision to impose temporary interest rate caps on loan agreements with natural person consumers to preserve financial system stability and protect consumer rights. The regulation sets maximum variable interest rates at 14.75% for dinar loans and 7.05% for foreign currency loans, while capping fixed housing loan rates at 5% and limiting effective rates for credit cards and overdrafts relative to the statutory default rate. These measures are mandatory for banks from January 1 to December 31, 2025, requiring them to notify affected consumers and adjust repayment schedules accordingly.
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