Loan Calculator Spain 2026

A personal loan (prestamo personal) in Spain is an unsecured credit agreement where a bank lends you a sum of money that you repay over a fixed term with interest. Unlike a mortgage, a personal loan is not backed by property — your creditworthiness is the guarantee. This is why personal loan interest rates are always higher than mortgage rates: the lender takes on more risk and charges accordingly. Personal loans are commonly used for car purchases, home renovations, education, and bridging short-term financial needs.

The French amortisation system explained

The vast majority of personal loans in Spain use the French amortisation system (sistema frances). Its defining feature is a constant monthly payment throughout the life of the loan. However, within that fixed payment, the proportion of interest versus principal changes: in the early months you pay mostly interest and little principal, and by the end the proportion reverses. This has a practical consequence: if you make an early repayment in the first months, you save proportionally more interest than if you repay near the end, because the interest component is larger at the beginning.

TIN vs TAE: the two numbers you must compare

The TIN (Tipo de Interes Nominal) is the pure interest percentage applied to the outstanding principal. But the true cost of a loan goes beyond TIN: there are arrangement fees (comision de apertura), study fees, mandatory linked insurance, and other charges that increase the cost. The TAE (Tasa Anual Equivalente) is the figure that incorporates all these costs, allowing you to compare loans from different banks on equal terms. By law, all Spanish bank advertising must display the TAE. A loan with a TIN of 5% but high fees might have a TAE of 7%, while another with a TIN of 5.5% and no fees could be cheaper overall in TAE terms.

How much can you borrow?

Spanish financial institutions generally apply a rule that your loan payment, together with all other debts, should not exceed 35-40% of your net monthly income. If you earn 2,500 EUR net per month and already pay 400 EUR on a mortgage, your additional borrowing capacity is around 500-600 EUR per month in repayments. Typical terms range from 12 to 96 months. A longer term means a lower monthly payment but more total interest. A 10,000 EUR loan at 7% TAE costs 1,116 EUR in interest over 3 years but 1,881 EUR over 5 years. The comfort of a lower monthly payment comes at a significantly higher total cost.

Example: 15,000 EUR car loan at 6.5% over 5 years

Sarah, a British expat working in Madrid, needs to finance a second-hand car for 15,000 EUR with a personal loan at 6.5% TIN over 60 months:

• Monthly payment: 293.27 EUR (constant for 60 months).
• Total paid: 293.27 x 60 = 17,596.20 EUR.
• Total interest: 17,596.20 - 15,000 = 2,596.20 EUR.
• In the first month, 81.25 EUR goes to interest and 212.02 EUR to principal.
• In the final month, only 1.59 EUR goes to interest and 291.68 EUR to principal.

If Sarah shortened the term to 3 years (36 months), her monthly payment would rise to 459.52 EUR, but total interest would drop to 1,542.72 EUR — saving over 1,000 EUR compared to the 5-year term.

Comparison table: 10,000 EUR at different terms (7% TAE)

To visualise how the loan term impacts total cost, here is a 10,000 EUR loan at 7% TAE using the French amortisation system:

The difference is striking: going from 2 to 5 years nearly halves the monthly payment (from 448 EUR to 198 EUR), but total interest more than doubles (from 746 EUR to 1,881 EUR). The right choice depends on your monthly budget and your tolerance for total cost. As a rule of thumb, choose the shortest term whose monthly payment fits comfortably within your budget — ideally no more than 20% of your net income.

Early repayment: your rights as a borrower

Under Spanish consumer credit law (Ley 16/2011), every borrower has the right to repay a personal loan early, either in full or partially. The maximum fee the bank can charge is 1% of the amount repaid if more than one year remains on the loan, or 0.5% if less than one year remains. Additionally, the fee can never exceed the total interest you would have paid during the remaining term. This makes early repayment particularly attractive during the first years of the loan, when the interest component in each payment is at its highest.

When does early repayment make sense? As a general rule, if your loan TAE exceeds the after-tax return you are getting on your savings, then every euro you repay early effectively "earns" you the difference. For instance, if your loan TAE is 7% and your savings account pays 2.5% after tax, each euro of early repayment gives you an effective 4.5% return risk-free.

Consumer rights you should know about

Spanish law provides several important protections for loan borrowers. The 14-day withdrawal right (derecho de desistimiento) allows you to cancel a personal loan within 14 calendar days of signing, without penalty or explanation. You only need to return the principal and interest accrued during those days. This is particularly useful if you signed a point-of-sale finance agreement on impulse and want to reconsider.

Before signing, the lender must provide you with the European Standardised Information Sheet (Informacion Normalizada Europea), a standardised document summarising the loan conditions: TAE, monthly payment, total amount payable, commissions and linked insurance. If the bank did not provide this before you signed, or if the contract TAE does not match the advertised rate, you may have grounds for a complaint. The Bank of Spain operates a free complaints service, though its resolutions are not legally binding.

Sources

• Ley 16/2011, consumer credit contracts — Pre-contractual information obligations, TAE calculation and 14-day withdrawal right.
• Bank of Spain (Banco de Espana) — Consumer banking portal with interest rate comparisons and complaint procedures.
• Ley 5/2019, mortgage credit contracts — Transparency standards (TAE, FEIN) that influence all Spanish credit regulation.