The maximum rates on consumer credit contracts for the third quarter of 2024 were all revised upwards compared to the current quarter (from April to the end of June), in line with the general rise in interest rates, as evidenced by the table released by Banco de Portugal (BdP), this Thursday.
The maximum rates on credit cards, lines of credit, bank current accounts and overdraft facilities, as well as credit overruns, were set at 19.2%. In the current quarter the maximum rate is 19%, that is, there will be an increase of 0.2 percentage points.
In automobile credit, the maximum interest rate in the “financial leasing or ALD: new†segment will be 6.7%, while in the “financial leasing or ALD: used†this will be 7.2% (6.3% and 6.8%, respectively, in the current quarter).
On credits with reservation of title and others relating to new vehicles, the maximum interest rate for the months of July to September is 11.3% (current 11%) and on used vehicles it is 14.3 % (14.2%).
In personal credit, in the education, health, renewable energy and equipment leasing segments, the fixed interest rate is 9.2%, with this category having the highest increase among all types of consumer credit (an increase of 0.7 percentage points compared to the current quarter, in which the maximum rate is 8.5%).
For other personal credits, the maximum rate is 15.8%, 0.2 percentage points more than the rate currently in force.
The maximum rates for the different types of credit to consumers are determined and disclosed quarterly by the central bank.
According to the legislation, the “maximum rates are determined based on the average Annual Global Effective Charge Rates (TAEG) practiced in the market by credit institutions in the previous quarter, plus of a quarter, not exceeding the average APR of all consumer credit contracts plus 50%†.
The maximum rate regime also provides, according to the institution’s note, that the “maximum APR of overdraft facility contracts with an obligation to repay within a month and that the maximum nominal annual rate (TAN) of credit overruns are equal to the maximum APR defined for credit contracts in the form of an overdraft facility with a repayment period of more than one month”.
