Background & Purpose

The consumer credit market has grown rapidly in recent years, leading to severe debt problems especially among young people with low incomes who take out high-interest quick loans.

The Decision

The Swedish parliament voted in favor of the government's proposal to ban quick-loan companies entirely, allowing only traditional banks to offer consumer credits.

Does this affect you?

  • Young adults with low incomes: They will no longer be able to access high-interest quick loans, significantly reducing their risk of falling into severe debt.
  • Quick-loan companies: Their business operations will be completely banned from July 1, 2025.
  • Traditional banks: They become the only authorized entities permitted to offer consumer credits.

In Practice

  • Quick-loan companies are prohibited from operating in Sweden.
  • Only traditional banks are legally allowed to provide consumer credits.
  • New regulations come into effect on July 1, 2025.
  • The rules aim to prevent severe over-indebtedness among vulnerable households.