Consumer credit 2026 — the cap is 17.5 %, the APR can be 20
Finland caps the interest on consumer credit, and many people read that as a promise that a loan cannot cost more than twenty per cent a year. It does not. The cap applies to the nominal rate, not to the annual percentage rate — and the APR is the figure that tells you what the credit actually costs.
A €10,000 loan over four years at the capped 17.5 per cent nominal rate with a €5 monthly fee actually costs 20.10 per cent a year. The loan is entirely lawful. Below is where the gap comes from and what you can do about it.
- 17.5 %
- nominal rate cap in 2026
- €150
- maximum other costs per year
- 20.10 %
- APR within the cap
- 2.50 %
- statutory reference rate, all of 2026
How the cap is built
Under the Consumer Protection Act the nominal interest on consumer credit may be at most the reference rate under the Interest Act plus fifteen percentage points, and never above twenty per cent. The Bank of Finland confirms the reference rate every six months. In 2026 it was 2.50 per cent in both halves of the year, so the cap stayed at 17.5 per cent throughout.
Alongside the rate there is a separate cost cap: non-interest credit costs — opening fees, account fees, invoicing charges — may be at most 0.01 per cent of the credit per day and no more than €150 a year. For credits of at least 30 days, a €5 charge per instalment may be agreed.
Why the APR is higher
The nominal rate tells you what interest is charged on the outstanding balance. The APR tells you what the credit costs, all fees included, relative to the money you actually receive. It folds in the opening fee, the monthly charges and the timing of payments. The cost cap limits fees in euros, but it does not stop them pushing the APR past twenty per cent.
| Nominal rate | Monthly fee | Monthly payment | Total cost of credit | APR |
|---|---|---|---|---|
| 9 % | €0 | €248.85 | €1,944.82 | 9.38 % |
| 9 % | €5 | €253.85 | €2,184.82 | 10.52 % |
| 17.5 % | €5 | €296.14 | €4,214.90 | 20.10 % |
| 20 % (absolute cap) | €5 | €309.30 | €4,846.57 | 23.06 % |
The first two rows are the same loan at the same rate. The only difference is a €5 monthly fee, and it raises the APR by 1.14 percentage points and the cost of credit by €240. Five euros a month sounds trivial, but measured against the loan it is interest just as much as interest is.
Compare the APR and nothing else
A lender must state the APR in advertising and before the agreement is made. It is the only number that lets you compare two offers, because it contains everything. A loan with the lower nominal rate can be the more expensive one on an APR basis if it carries an opening fee or a monthly charge.
- The nominal rate alone does not tell you the price — always ask for the APR.
- An opening fee matters most on short loans, because it is spread over fewer months.
- A monthly fee matters most on long loans, because it repeats every month.
- Credit cards and credit lines are priced differently from a one-off loan, but they too must state an APR.
- Mortgages and vehicle hire-purchase financing fall outside the rate cap entirely.
Term: smaller payment, bigger price
The term on consumer credit works the way it does on a mortgage but faster, because the rate is several times higher. The same €10,000 loan at nine per cent costs €554 over a year and €2,755 over five.
| Term | Monthly payment | Total cost of credit |
|---|---|---|
| 12 months | €879.51 | €554.18 |
| 24 months | €461.85 | €1,084.34 |
| 36 months | €323.00 | €1,627.90 |
| 48 months | €253.85 | €2,184.82 |
| 60 months | €212.58 | €2,755.01 |
The payment falls from €879 to €213, but the price multiplies fivefold. This is the most common expensive choice in consumer credit: the instalment is picked to fit this month’s budget rather than by what the loan actually costs.
What the cap does not cover
The cap applies to unsecured consumer credit. Outside it sit mortgages and other secured loans, along with vehicle hire-purchase financing. Dealer finance can therefore carry a higher nominal rate than a bank’s consumer loan, even though it feels safer because it comes through the showroom.
Collection costs and late-payment interest are a separate matter again. In the second half of 2026 the penalty rate is 9.5 per cent, but where the contractual rate is higher, that contractual rate may be charged as penalty interest for a further 180 days from the due date. If payment is going to be difficult, contact the lender before the due date rather than after it.
Calculators for this topic
FAQ
What is the consumer-credit interest cap in Finland in 2026?
The nominal rate may be at most the statutory reference rate plus 15 percentage points, and never more than 20 per cent. The reference rate was 2.50 per cent throughout 2026, so the cap is 17.5 per cent.
Can the APR exceed the interest cap?
Yes. The cap applies to the nominal rate, while the APR also includes fees and the timing of payments. At the capped 17.5 per cent with a €5 monthly fee, the APR on a €10,000 loan is 20.10 per cent.
How much may a lender charge in fees?
Non-interest costs may be at most 0.01 per cent of the credit per day and no more than €150 a year. For credits of at least 30 days a €5 charge per instalment may be agreed.
Should I compare the nominal rate or the APR?
The APR. It includes the interest, the opening fee, monthly charges and the payment schedule, so it is the only figure that lets you compare offers. The lender must disclose it before the agreement is made.
Does the cap apply to car finance?
No. Vehicle hire-purchase financing and secured loans such as mortgages fall outside the cap. Dealer finance can therefore carry a higher nominal rate than an unsecured consumer loan.
Can I repay a consumer loan early?
Yes, in full or in part at any time. You pay interest only for the period you actually used the credit, so early repayment reduces the price of the loan directly.