Loans in Spain the intelligent way

Looking for a loan in Spain for a home, car, renovation, or personal expenses? Whether you’re living in Spain or just planning to invest, there are lenders offering competitive rates and flexible terms.

At LoansSpain.es, we help you find the best loan options based on your needs – with transparent terms and fast response times.

How to Apply for a Loan in Spain

Applying for a loan in Spain is a straightforward process if you know the steps. Most applications can be completed online, and decisions are often made within a few days. Here’s what to expect from start to finish.

Steps to apply for a loan in Spain:

• Choose your loan type
• Compare lenders
• Prepare your documents
• Fill out the application form
• Wait for approval
• Sign the agreement
• Receive your funds

Choose your loan type

Start by deciding what kind of loan you need – personal loan, mortgage, car loan, or something else. The type of loan determines the amount you can borrow, the interest rate, and the repayment period.

Make sure to match the loan to your financial goals. A mortgage, for example, will come with stricter requirements but may offer better long-term rates than a personal loan.

Compare lenders

Not all lenders offer the same terms. Compare interest rates, fees, repayment periods, and early repayment conditions. Look out for hidden charges or setup costs.

At LoansSpain.es, we highlight trusted providers with transparent terms, so you can make an informed choice based on your situation.

Prepare your documents

Gather all required documents before you apply. This usually includes ID, proof of income, NIE, and bank details. Some lenders may ask for extra paperwork if you’re self-employed or applying as a non-resident.

Having your documents ready speeds up the approval process and reduces the risk of delays or rejections.

Fill out the application form

Most lenders offer digital application forms that take less than 10 minutes to complete. You’ll need to enter personal data, income details, and the loan amount you’re requesting.

Be accurate and honest – inconsistencies between your form and documents can result in rejection.

Wait for approval

After submission, the lender will review your application. This typically takes 1–3 business days, though some providers offer same-day decisions.

During this time, they may contact you for clarification or additional documents. Keep an eye on your email or phone for updates.

Sign the agreement

Once approved, you’ll receive a loan offer. Review the terms carefully – including interest rate, monthly payment, and total repayment amount – before signing.

Most agreements can be signed digitally, and you’ll often receive a copy immediately after completion.

Receive your funds

After signing, the funds are usually transferred to your Spanish bank account within 1–3 working days. For some lenders, the transfer is instant.

Make sure your account is active and ready to receive the money, and track the payment confirmation to ensure everything is in order.

Eligibility and Requirements for Loans in Spain

Before applying, it’s important to understand the basic requirements for getting a loan in Spain. While criteria vary by lender and loan type, most providers look for a few key factors when reviewing your application.

Typical loan requirements in Spain:

• Valid ID or passport
• Proof of income
• Spanish bank account
• NIE number (Foreigner Identification Number)
• Credit history or report
• Residency status (resident or non-resident)

Valid ID or passport

All applicants must provide official identification. For foreigners, this usually means a valid passport or national ID from your country of origin.

Proof of income

Lenders want to see stable income. This can include salary slips, tax returns, or bank statements. Self-employed applicants may need to show extra documentation.

Spanish bank account

Most lenders require a Spanish bank account to deposit the loan and collect repayments. You can usually open one with just your passport and NIE.

NIE number (Foreigner Identification Number)

The NIE (Número de Identificación de Extranjero) is essential for most legal and financial transactions in Spain, including loans. If you don’t have one yet, it’s recommended to apply before seeking financing.

Credit history or report

A good credit history – from Spain or abroad – increases your chances of approval. Some lenders accept international credit reports, while others only assess local data.

Residency status (resident or non-resident)

Both residents and non-residents can apply, but conditions may vary. Non-residents may face stricter checks or higher interest rates depending on the loan amount and purpose.

Types of Loans Available in Spain

Spain offers a wide range of loan types depending on your purpose, financial situation, and residency status. Below are the most common loan types in Spain.

Personal Loans

Personal loans are unsecured loans used for general purposes like travel, renovations, or unexpected expenses. They typically offer fast approval, fixed interest rates, and repayment terms between 12 and 96 months. No collateral is required.

Mortgages (Home Loans)

Mortgages and Home loans are loans used to purchase property in Spain. Can be fixed-rate or variable-rate and usually require a down payment of 20–30%. Non-residents may face stricter terms and slightly higher interest rates. Loan terms can stretch up to 30 years.

Car Loans

Car loans are specifically designed for financing vehicle purchases. Offered by banks, dealerships, and online lenders. Rates and conditions may vary depending on whether the car is new or used. Some lenders offer 100% financing with no deposit.

Business Loans

Available for both startups and established companies. Often require a detailed business plan and financial forecasts. Spanish banks and fintechs offer credit lines, working capital loans, and investment loans to business owners.

Payday Loans

Quick or Short-term loans for small amounts, typically repaid within 30 days. Easy to qualify for but often come with high interest rates and fees. Not recommended for long-term borrowing due to the cost.

Student Loans

Used to finance tuition or living expenses. Offered by some Spanish banks, often in partnership with universities. Repayment can be deferred until after graduation, but conditions vary widely.

Debt Consolidation Loans

Allow you to combine multiple debts into a single monthly payment. Can help lower your interest rate and simplify your finances. Available through banks and private lenders, often requiring proof of stable income.

Secured vs Unsecured Loans in Spain

When applying for a loan in Spain, it’s important to understand whether it’s secured or unsecured – as this affects both your risk and the lender’s conditions.

A secured loan requires collateral, such as a property, vehicle, or savings account. Mortgages are the most common type of secured loan. Because the lender has security, interest rates are usually lower, and loan amounts can be higher. However, if you fail to repay, the lender can legally claim the asset.

An unsecured loan does not require any collateral. Personal loans fall into this category. While approval is typically faster and the paperwork simpler, interest rates tend to be higher, and loan amounts are limited compared to secured options. Your income and credit profile play a bigger role in the approval process.

Understanding the difference helps you choose the right loan for your situation – balancing cost, risk, and flexibility.

Interest Examples for Loan in Spain

To help you understand the real cost of borrowing, here’s an overview of typical personal loan examples in Spain. These are based on standard market conditions for residents with average credit scores.

Loan Amount	Monthly Payment	Monthly Rate	Annual Rate (TAE)	Duration	Total Repayment
€5,000	€156	1.15%	13.8%	36 months	€5,616
€10,000	€302	1.10%	13.2%	36 months	€10,872
€15,000	€291	0.95%	11.4%	60 months	€17,460
€20,000	€382	0.90%	10.8%	60 months	€22,920
€30,000	€570	0.83%	10.0%	60 months	€34,200

Monthly Payment
The fixed amount you pay every month until the loan is repaid. It includes both interest and principal.

Monthly Rate
The nominal interest charged per month. It gives you a sense of the cost without fees.

Annual Rate (TAE)
The full annual cost of the loan, including fees. This is the most important number to compare across lenders.

Duration
How long the loan lasts. Common terms for personal loans in Spain are 12 to 96 months.

Total Repayment
The total amount you’ll repay over the full loan term, including interest and fees. This is the actual cost of the loan.

Example of a Personal Loan in Spain

To give you a clearer picture of how a personal loan works in practice, here’s a detailed example based on a typical offer from a Spanish online lender.

Loan Detail	Value
Loan Type	Personal Loan
Loan Amount	€10,000
Purpose	Home renovation
Borrower Residency	Resident in Spain
Employment Status	Full-time employed
Monthly Net Income	€2,400
Interest Rate (Nominal)	6.5%
APR (TAE)	8.1%
Loan Term	48 months
Monthly Payment	€246.51
Total Interest Paid	€1,832.48
Total Repayment	€11,832.48
Origination Fee	€150 (1.5%)
Early Repayment Option	Yes (no penalty)
Collateral Required	No
Approval Time	24–48 hours
Disbursement Time	Within 1–2 business days

This example illustrates a standard unsecured personal loan. The borrower applies for €10,000 to finance a home renovation project. With an APR of 8.1%, they pay €246.51 monthly for 4 years, totaling €11,832.48. The origination fee of €150 is included in the APR. No collateral is required, and the loan can be repaid early without penalties.

Loan Repayment Options in Spain

Repaying a loan in Spain typically involves fixed monthly payments over a set term, but some lenders offer flexibility depending on the loan type and your agreement.

The most common model is standard amortization, where each monthly payment covers both interest and principal. Payments remain the same throughout the loan term, making budgeting predictable.

Some lenders offer early repayment options, allowing you to pay off the loan ahead of schedule, either partially or in full. In many cases, there’s no penalty – but some banks may charge a small early repayment fee, especially for fixed-rate loans.

A few lenders also allow grace periods or payment holidays, usually at the beginning of the loan term, where you either pay interest only or defer payments entirely. This can help if you’re waiting on income or settling into a new financial situation. Always check the long-term cost of using these features.

How Much Can You Borrow in Spain

The amount you can borrow in Spain depends on several factors, including your income, residency status, credit history, and the type of loan you’re applying for. Most lenders offer personal loans between €1,000 and €50,000, while mortgages can go significantly higher depending on property value and deposit size.

As a general rule, banks and lenders follow these limits:

• Personal loans: €1,000 – €50,000
• Car loans: Up to 100% of vehicle value
• Mortgages: Up to 70–80% of property value for residents; 60–70% for non-residents
• Business loans: Varies based on business plan and financials

Lenders typically cap your monthly loan payments at 30%–40% of your net monthly income. If your income is €2,000 per month, you’ll usually qualify for a loan with monthly payments around €600–€800, depending on your credit profile and debt level.