News item | 6/26/2023 | 15:12
The maximum interest that providers may charge on consumer credit (or the maximum credit fee) will increase from 1 July from 12% to a maximum of 14%. Borrowing money, standing in the red and buying on installment can therefore become more expensive.
This increase is due to the increase in the statutory interest rate from 4% to 6%. This statutory interest is part of the maximum credit compensation. An increase or decrease in this statutory interest rate therefore affects the maximum credit compensation.
The statutory interest rate is linked to the interest rate of the European Central Bank (ECB) and will rise from 4% to 6% from 1 July. The ECB is trying to curb high inflation with higher interest rates. The ECB has raised interest rates sharply in the past six months.
The maximum credit compensation consists of two parts: the variable statutory interest rate and a maximum surcharge. Due to the increase in the statutory interest, the total maximum credit compensation is now also increasing. The maximum surcharge offers lenders an opportunity to price the risk of default, cover costs and earn a return. That surcharge was reduced from 12% to 8% last year and will remain so.
The Ministry of Finance warns against taking out a loan too easily. Sometimes it is very tempting to take out a short-term loan, for example to cover a major purchase or an unexpected expense. But because of the rising interest rates, you will ultimately end up paying more. The ministry provides information with financial guidance and programs that point out the dangers of overdrafts and borrowing too easily.