Croatia to implement new consumer credit laws for early loan repayments

A new Consumer Credit Act in Croatia, set to take effect on November 20, 2026, will introduce more favorable conditions for citizens looking to repay loans early. Under the new legislation, banks will be prohibited from charging fees for early repayment in many instances, with mortgage loans being entirely exempt from such costs.

The law unifies the rules for consumer and mortgage lending. It guarantees consumers the right to partially or fully repay a loan at any time, resulting in a proportional reduction of total costs. When calculating these savings, banks must consider not only future interest but also fees charged during the initial loan approval process.

For standard consumer loans, banks may still charge fees under strictly defined conditions during fixed interest rate periods. If more than one year remains until the loan's maturity, the fee cannot exceed 1% of the prepaid amount; if less than a year remains, the limit is 0.5%. Fees are only applicable to amounts exceeding 10,000 euros within a 12-month period and cannot exceed the total interest that would have been paid until the contract's regular expiration.