Regulatory Alerts2020-03-31
Added · Updated
Instruction No. 7/2020 on Maximum Rates for Consumer Credit Contracts in Q2 2020
The Bank of Portugal establishes maximum effective annual rates (TAEG) and maximum nominal rates (TAN) for consumer credit contracts concluded in the second quarter of 2020. These limits apply to specific categories including personal credit, education and health financing, vehicle loans, financial leasing, credit cards, and overdrafts, with maximum TAEGs ranging from 4.3% to 15.8% and a maximum TAN of 15.8% for credit overdrafts. The instruction mandates compliance with these caps for contracts signed between April 1 and June 30, 2020, without altering the freedom to negotiate other financing conditions.
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