December 19, 2025 – Madrid – Consumer lending in Spain has surged to levels not seen since the eve of the 2008 financial crisis, reflecting strong economic growth, a rising workforce, and a shift among banks from mortgages to more profitable consumer loans.

According to official data, new consumer loans reached nearly €4.5 billion in October, marking a 21.8% year-on-year increase and the highest monthly total since 2007. This growth contrasts with the broader eurozone, where consumer credit tightened slightly due to economic uncertainty.

Banks See Room for Further Growth

Spanish lenders report strong demand for consumer credit, fueled by a near-record workforce and a population approaching 50 million.

• Sabadell: Performing consumer loans rose 19% year-on-year, compared with a 5.6% increase in mortgages.
• BBVA: Consumer lending and credit card businesses grew six times faster than the mortgage book as of September.
• Unicaja: Plans to double new consumer loans by 2027, targeting stable, pre-authorized borrowers to minimize default risk.

“There is more room for growth in consumer lending in a healthy way,” said Javier Gaztelu, deputy managing director at Sabadell.

Risk and Profitability

Unsecured consumer lending carries higher risk, with bad debt ratios climbing slightly above 4% in October, nearly double that of mortgages but well below the 8.3% peak in June 2009.

Despite the risk, returns on consumer loans averaged almost three times the 2.67% earned on mortgages, making them highly attractive to banks.

Spanish banks’ overall consumer loan books rose 7.2% year-on-year to €105.9 billion at the end of June, approaching the all-time high recorded in July 2008. Consumer credit now accounts for 8.7% of total lending, up from 8.3% last year and 5.8% before the 2008 crisis.

Government to Cap Riskier Loans

While mainstream bank lending remains stable, the Spanish government is increasingly concerned about unregulated lenders offering high-interest microloans, some with annual rates starting at 18% and soaring past 1,000%. These loans can trap vulnerable borrowers in cycles of debt.

In the coming weeks, Spain will begin implementing rate caps on revolving credit lines, as part of broader EU directive compliance. Authorities aim to prevent excessive interest and fees from creating financial instability among borrowers.

Antonio Gallardo, head of research at consumer association Asufin, noted:

“There are people who need financing for their day-to-day lives, who are excluded from regular credit, and turn to microloans with exorbitant rates.”