Region

Jurisdiction

Regulator

2024-03-06

Added 2026-06-23 · Updated 2026-08-20

Instruction (Historical) No. 3/2024

The Banco de Portugal sets maximum interest rates for consumer credit contracts concluded in the second quarter of 2024, effective April 1, 2024. Personal credit is capped at a maximum Effective Annual Percentage Rate (APR) of 8.5% for education, health, renewable energy, and equipment leasing purposes, and 15.6% for other personal credits. Auto loans have maximum APRs ranging from 6.3% to 14.2% depending on vehicle condition and ownership structure, while credit cards, overdrafts, and bank accounts are capped at 19.0%. Credit card overdrafts also carry a maximum nominal annual rate of 19.0%.

Portugal

Banco de Portugal

Instruction No. 3/2024 BO No. 2/2024 Supplement • 2024/03/06 .................................................................................................................................................................................................. Topics Supervision :: Behavioral Supervision Mod. 99999940/T – 01/14 Index Text of the Instruction Text of the Instruction Subject: Disclosure of maximum rates applicable to consumer credit contracts in the 2nd quarter of 2024

Decree-Law No. 133/2009, of June 2, which transposed into the internal legal order Directive No. 2008/48/EC, of April 23, relating to consumer credit contracts, established the regime of maximum rates applicable to these contracts.

According to Article 28 of Decree-Law No. 133/2009, in the current wording, the maximum rates for each type of credit are determined based on the average Effective Annual Percentage Rates of Charge (APR) practiced in the market by credit institutions in the previous quarter, plus one quarter. Additionally, the maximum rate of any type of credit cannot exceed the average APR of the entire consumer credit market, plus 50%. Applying the criterion defined by law, the Bank of Portugal quarterly discloses the maximum rates for different types of credit, for application to contracts to be concluded in the following quarter.

The rates defined in this Instruction constitute maximum limits on the charges that can be contracted in each type of credit contract, and under no circumstances may they be referred to as "legal rates". The freedom to contract financing conditions remains, with the sole exception of compliance with these limits.

Thus, in the exercise of the competence attributed to it by Article 17 of its Organic Law and by Article 28 of Decree-Law No. 133/2009, of June 2, the Bank of Portugal determines the following:

Consumer credit contracts, concluded within the scope of Decree-Law No. 133/2009, of June 2, shall observe the maximum rate regime defined in Article 28.
In the 2nd quarter of 2024, the maximum rates set out in the tables below apply for each type of credit contract:

2nd quarter of 2024 Maximum APR Personal Credit Purpose Education, Health, Renewable Energies and Financial Leasing of Equipment 8.5% Other Personal Credits (without specific purpose, home, consolidated and other purposes) 15.6% Auto Credit Financial Leasing or ALD: new 6.3% Financial Leasing or ALD: used 6.8% With retention of ownership and others: new 11.0% With retention of ownership and others: used 14.2% Credit Cards, Credit Lines, Bank Current Accounts and Overdraft Facilities 19.0%

2nd quarter of 2024 Maximum NAR Credit Overdrafts 19.0%

The types of credit contracts listed in the previous tables correspond to the credit categories defined in Instruction No. 14/2013, except for credit overdrafts which are defined in Decree-Law No. 133/2009.
This Instruction enters into force on April 1, 2024.