Croatia Introduces New Consumer Credit Law Cutting Early Repayment Fees

A new Consumer Credit Act taking effect on 20 November 2026 will reduce the cost of repaying consumer loans before the agreed term. Under the law, early‑repayment charges are limited to 1 % of the prepaid amount when more than a year remains on the loan, and to 0.5 % when a year or less remains. Fees can only be applied if total early repayments exceed €10,000 in a twelve‑month period, and any charge may not exceed the interest that would have accrued for the remaining period.

At the same time, the Croatian National Bank (HNB) warns borrowers about a shift from almost entirely fixed‑rate mortgages to an increasing share of variable‑rate loans. The proportion of new home loans with a fixed rate fell from 99.7 % in 2023 to 87.7 % in the first five months of 2024. A rise in the reference Euribor rate from 2.9 % to 3.9 % on a €150,000, 25‑year loan would raise the monthly payment by about €80, illustrating the potential burden of variable rates.