As part of the Draft Law on the Protection of Users of Financial Services, interest rates on housing loans, as well as cash, consumer loans, credit cards and allowed overdrafts, will be capped at 5% from December 31, 2025. This limit applies to both fixed and variable interest rates, marking a significant shift in the financial landscape.
The new regulation, which is set to take effect on July 1, 2025, will specifically apply to housing loans starting January 1, 2025, and will impact loans already in repayment as well as those that banks approve in the future.
According to the proposed law submitted by the National Bank of Serbia to Parliament, by the end of 2025, no housing loan can have a variable interest rate, nor can the fixed rate exceed 5%. This measure is aimed at protecting consumers from excessive borrowing costs, particularly as it also addresses the issue of allowed overdrafts, which could significantly reduce costs for individuals.
The law is expected to be adopted during the September session of the Serbian Assembly and could bring notable changes to how financial institutions offer loans in the country.
