Regulatory Alerts2025-03-07
Added · Updated
Instruction (Historical) No. 3/2025
The Bank of Portugal establishes maximum interest rates for consumer credit contracts concluded in the second quarter of 2025, based on the previous quarter's average effective annual rates. The directive specifies maximum Effective Annual Percentage Rates (APR) for categories including personal credit, education, health, renewable energy, equipment leasing, and credit cards, as well as maximum nominal rates for credit overdrafts. These limits apply to contracts signed from April 1, 2025, and do not restrict the freedom to negotiate financing conditions beyond these caps.
Instruction No. 3/2025 BO No. 2/2025 Supplement • 2025/03/07 .................................................................................................................................................................................................. 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 2025
Decree-Law No. 133/2009, of June 2, which transposed into the internal legal order Directive No. 2008/48/EC, of April 23, on 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 (APR) practiced in the market by credit institutions in the previous quarter, increased by a quarter. Additionally, the maximum rate of any type of credit may not exceed the average APR of the entire consumer credit market, increased by 50%. Applying the criterion defined by law, the Bank of Portugal publishes quarterly the maximum rates for the 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:
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Consumer credit contracts, concluded under Decree-Law No. 133/2009, of June 2, shall observe the maximum rate regime defined in Article 28.
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In the 2nd quarter of 2025, the maximum rates for each type of credit contract, as set out in the tables below, shall apply:
2nd quarter of 2025
| Credit Type | Maximum APR |
|---|---|
| Personal Credit | 9.2% |
| Purpose: Education, Health, Renewable Energies and Financial Leasing of Equipment | |
| Other Personal Credits (no specific financing, home, consolidated and other purposes) | 16.0% |
| Auto Credit | |
| Financial Leasing or ALD: New | 5.9% |
| Financial Leasing or ALD: Used | 8.1% |
| With retention of ownership and others: New | 11.0% |
| With retention of ownership and others: Used | 14.3% |
| Credit Cards, Credit Lines, Bank Current Accounts and Overdraft Facilities | 19.3% |
2nd quarter of 2025
| Credit Type | Maximum Nominal Rate (TAN) |
|---|---|
| Credit Overdrafts | 19.3% |
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The types of credit contracts in the tables above correspond to the credit categories defined in Instruction No. 14/2013, except for credit overdrafts, which are defined in Decree-Law No. 133/2009.
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This Instruction enters into force on April 1, 2025.
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