Regulatory Alerts2022-03-09
Added · Updated
Instruction No. 5/2022
The Bank of Portugal establishes maximum interest rate limits for consumer credit contracts concluded in the second quarter of 2022, effective April 1, 2022. These caps are calculated based on the previous quarter's average Effective Annual Percentage Rates (APR) plus a quarter, ensuring they do not exceed the market average APR plus 50%. Specific maximum APRs are set at 6.4% for education, health, renewable energy, and equipment leasing, 13.1% for other personal credits, and up to 15.8% for credit cards and overdraft facilities. Maximum Annual Percentage Rates (APR) for credit overdraws are also fixed at 15.8%.
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