Lorraine Williamson
Spain is preparing a tougher rulebook for consumer lending, with a Spanish consumer credit cap designed to curb the most expensive small loans and tighten oversight of online lenders. The government says the aim is simple: stop households on the tightest budgets from being pulled into debt spirals by “easy money” products sold in a few clicks.
The cabinet has approved a draft bill (an anteproyecto de ley) that transposes EU rules on consumer credit and distance financial services — areas where Spain has been playing catch-up as digital lenders expanded fast.
Why Spain is acting now
Consumer credit has become a much bigger part of household finances, and ministers argue regulation hasn’t kept pace with how borrowing now happens — especially online. In the official briefing, Economy Minister Carlos Cuerpo pointed to €114 billion in consumer credit as of November 2025, around 15% of total household credit, calling it a record level.
Microcredits are a small slice of the market by value, but not by volume — and that’s where the political pressure sits, because the customers are often those with the least margin for error.
How the new cap is meant to work
At the centre of the reform is a ceiling on the total cost of consumer loans (APR/TAE). Under the RTVE summary, the limit would be set off the average consumer-credit rate and updated regularly by the Banco de España, with different “margins” depending on the loan size.
RTVE reports a tiered structure in the draft, with caps of 15% for loans up to €1,500, 10% for €1,500–€6,000, and 8% for loans above €6,000 (with distinctions linked to maturity). These ceilings would be updated quarterly.
Until the implementing decree takes effect, the government also proposes a temporary 22% cap for new contracts after the law enters into force.
Microcredits get their own stricter rulebook
For the high-cost, short-term end of the market — the “€300 for 30 days” style product — the draft introduces extra constraints.
According to the Moncloa briefing, interest would be limited to 4% per month, with an opening fee capped at 5% (or €30). The draft also sets a minimum of three monthly instalments and limits certain early-repayment costs.
The government is keen to underline what that means in euros, not percentages. It says a typical microcredit today might cost €103 on a €300, 30-day loan — and argues the new framework would push the maximum cost down sharply (with examples of €40 maximum if repaid over at least three months, and €20 in cases of early repayment).
Revolving cards: the “slow drain” problem
Revolving credit is singled out because it can look manageable month to month while barely reducing the balance.
The government says the new cost limits would not only affect new credit, but also parts of the existing revolving market: in its briefing, it suggested around one in four revolving-card loans would need to be revised down under the proposed ceilings.
A 24-hour pause — and ads can’t sell “instant money”
Two consumer-facing changes stand out.
First, a cooling-off period: customers must receive clear information at least 24 hours before taking out certain expensive loans, to slow down decisions made under pressure.
Second, tighter marketing rules: advertising that foregrounds speed and ease — the “money in minutes” pitch — would be restricted, with lenders required to put cost and conditions front and centre.
Who gets to lend: Banco de España oversight expands
The reforms also go after the “grey area” of lightly supervised online providers. Under the plan, only authorised and supervised entities would be able to offer consumer credit, bringing more of the market under the Banco de España umbrella.
RTVE reports new categories designed to cover smaller or more specialised operators, alongside a specific regime for authorised high-cost lenders.
What this means for borrowers in Spain
If you’re considering a small loan, the direction of travel is clear: more checks, clearer disclosure, and less room for eye-watering costs that only become obvious after the paperwork.
A few practical takeaways already emerge from the government’s outline:
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Treat the APR/TAE as the headline figure, not the monthly payment.
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Use the 24-hour window to compare offers and read the total cost.
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If you’re stuck in revolving credit, keep an eye on whether your provider must adjust costs under the new ceilings.
The bill also foresees expanded “debt advice” style support services, framed as financial, legal and social help for people already in difficulty.
The wider backdrop: EU pressure and a fast-changing market
Spain’s timing is not accidental. The EU’s updated Consumer Credit Directive sets a transposition deadline of 20 November 2025, and the directive widens expectations around transparency and consumer protections in a more digital lending world.
El País, in an editorial, argues the tougher approach is necessary precisely because small-credit products have become more relevant in household budgets — and because abuses tend to hit the most vulnerable first.
What happens next in parliament
This is not the final law yet. The Moncloa briefing says the draft bill will go immediately to public consultation, alongside a royal decree that develops parts of the framework. After that, the legislation must still move through parliament.
What to watch is how the caps are ultimately calculated in practice — and how aggressively enforcement is applied to online lenders whose business models depend on speed, repeat borrowing, and fees.
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