Instruction No. 16/2024: Disclosure of Maximum Rates Applicable to Consumer Credit Contracts in the First Quarter of 2025

Instruction No. 16/2024
BO No. 11/2024 3rd Supplement • 2024/12/05
..................................................................................................................................................................................................
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 1st 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, regarding 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 Annual Effective Global Rates (TAEG) practiced in the market by credit institutions in the previous quarter, plus one quarter. Additionally, the maximum rate of any type of credit may not exceed the average TAEG of the entire consumer credit market, plus 50%. Applying the criterion defined by law, the Bank of Portugal publishes the maximum rates for the different types of credit quarterly, 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 for 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:

1. Consumer credit contracts, concluded under Decree-Law No. 133/2009, of June 2, must observe the maximum rate regime defined in Article 28.

2. In the 1st quarter of 2025, the maximum rates listed in the tables below apply to each type of credit contract:

Instruction No. 16/2024 BO No. 11/2024 3rd Supplement • 2024/12/05 Topics Supervision :: Behavioral Supervision
..................................................................................................................................................................................................
Mod. 99999940/T – 01/14

1st quarter of 2025
TAEG maximum
Personal Credit
Purpose Education, Health, Renewable Energies and Financial Lease of Equipment 9.0% Other Personal Credits (without specific financing, home, consolidated and other purposes) 15.9% Automobile Credit Financial Lease or ALD: new 6.4% Financial Lease or ALD: used 8.3% With reservation of ownership and others: new 11.3% With reservation of ownership and others: used 14.4% Credit Cards, Credit Lines, Bank Current Accounts and Overdraft Facilities 19.2%

1st quarter of 2025
TAN maximum
Credit Overdrafts 19.2%

3. The types of credit contracts listed 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.

4. This Instruction enters into force on January 1, 2025.