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    What is the maximum interest rate on consumer loans in Finland?

    How Finland limits the cost of consumer credit.

    Answered at: Checked at:

    Short answer

    Finland lowered the interest cap on consumer credit from 20% to 15% on 1 October 2023. Lenders may add the reference rate set under the Interest Act on top of the 15%, but the agreed interest may not exceed 20% even if the reference rate rises above 5%. The Finnish Government says the cap applies to almost all consumer credit, and the reform also restricts credit marketing.

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    Why

    1. Taloustaito reports that the cap fell to 15% on 1 October 2023.
    2. The reference rate can be added, but the total cannot exceed 20%.
    3. The Finnish Government says the reform also limits credit marketing.

    Details

    The reference rate is confirmed twice a year. Check the current figure before comparing loan offers.

    Tip

    Compare the effective annual interest rate, not only the nominal rate, when you look at loan offers.

    What may differ

    Mortgages and some other types of credit follow different rules.

    Common misconception

    Quick loans in Finland can charge any interest they like.

    What actually happens

    Consumer credit is capped at 15% plus the reference rate, and at most 20%.

    People also ask

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    • Can foreigners open a bank account in Finland?

    Sources

    This answer is for reference only. Banks set their own terms, so check the details with the bank before you act.

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