News item | 20-11-2023 | 09:20
The maximum interest that providers may charge on consumer credit (or the maximum credit compensation) will increase from 14% to a maximum of 15% as of January 1. Borrowing money, overdrafting and purchasing on installments can therefore become more expensive.
This increase is due to the proposed increase in the statutory interest rate from 6% to 7%. 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). The ECB is trying to curb high inflation with higher interest rates. The ECB has further raised interest rates over 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 rate, the total maximum credit compensation will now also increase. 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% in June 2022 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 large purchase or an unexpected expense. But the rising interest ultimately means it will cost you more. The ministry provides information with financial guidance and programs that point out the dangers of overdrafts and borrowing too easily.