Background & Purpose
Many individuals in Sweden struggle with severe debt because they are granted loans they cannot afford to pay back, leading to widespread financial distress.
Proposals & Debate
The government proposed expanding consumer credit rules—including interest and cost caps—to cover most consumer loans and lowering the interest rate cap. Parliament also considered various opposition motions concerning credit information, resulting in a formal call for a national debt and credit registry.
The Decision
Following a vote in the Swedish parliament, the legislative changes regarding consumer credits were approved.
Does this affect you?
- Borrowers in Sweden: Benefit from lower maximum interest rates and stronger protection against taking on unaffordable loans.
- Lenders and financial institutions: Must adapt their credit assessment models and lending practices to comply with the new, stricter caps.
In Practice
- Rules regarding interest and cost caps are expanded to cover the majority of consumer loans in Sweden.
- The interest rate cap is lowered to 20 percentage points above the current reference rate.
- Work begins on establishing a comprehensive registry for debt and credit information.
- The new legal changes come into force on March 1, 2025.