Maximum loan rates will rise in 2024: How to find the lowest rates?

Need the services of a credit intermediary? Contact Poupança no Minuto, without commitment and without costs! But first understand what values of interest rates are at stake and how to access the lowest ones.

Highest consumer credit interest rates in 2024 

According to Notícias ao Minuto news, the Bank of Portugal (BdP) announced that maximum consumer credit rates will increase in the first quarter of 2024.

"According to the information published today on the financial supervisor's website, all types of contracts will have an increase in maximum rates, except for financial leasing or ALD - Long-Term Rental (used) of car credit, which remains stable at 6.5% in the first quarter of 2024 compared to the last quarter of 2023," the news article reads.

However, the maximum rate that will be applied to credit cards, credit lines, bank accounts, and overdraft facilities will be 18.6%, compared to the current 17.9% (fourth quarter of 2023).

In relation to other types of credit, the increase will be reflected as follows:

• Car loan - from 10.7% to 11.1% (for new cases of reserve of ownership and others), and from 13.5% to 14% (in the case of used);
• Financial leasing or ALD, long-term rental (new) - from 5.3% to 6.1%;  
• Personal credit, for education, health, renewable energy, and financial leasing of equipment – from 7.6% to 7.7%; 
• Other personal loans without purpose - from 14.8% to 15.2%;  

How are these rates defined, according to the type of credit?

These rates are determined by quarters, by the Bank of Portugal, considering the Average Annual Percentage Rate (APR) practiced in the market by banks in the previous quarter, plus a quarter. Note that "the rates cannot exceed the average APR of all consumer credit contracts plus 50%," explains the regulator, according to the news.

In addition, the maximum fee regime provides that "the maximum APR for overdraft facilities contracts with a repayment obligation within one month and the maximum Nominal Annual Rate (NAR) for credit overruns shall be equal to the maximum APR defined for credit contracts in the form of overdraft facilities with a repayment period exceeding one month," as advised by the Bank of Portugal.

Find the lowest rates on loans at .

So, when it comes to hiring a credit, how to find the lowest rates? Requesting proposals from several banks and comparing simulations.

For this process, it may make sense to access a credit intermediary, such as Poupança no Minuto. Credit intermediaries work with partner banks, facilitating the entire process and communication between the client and the institutions.  

The first step is to have access to the different proposals requested, according to the specific client's conditions, and then help and advise in comparing between the several, and in the final decision.

When comparing costs among banks, you can find out which one has the lowest rates and the most suitable conditions for you.

Want to talk to a credit intermediary? Contact Poupança no Minuto and access a free and personalized service!