Personal Loan Spain

Whether you’re covering unexpected expenses, renovating your home, or planning a big purchase, a personal loan in Spain gives you quick access to funds with fixed monthly payments.

You don’t need to own property or provide collateral – just prove your income and identity. With online lenders, you can apply in minutes and get approval within a day.

What Is a Personal Loan?

A personal loan is an unsecured loan that allows you to borrow a fixed amount of money and repay it in monthly installments over a set term. Since no collateral is required, approval is based mainly on your income, credit history, and residency status.

In Spain, personal loans are commonly used for home improvements, travel, medical bills, weddings, or consolidating debt. Loan terms typically range from 12 to 96 months, with fixed interest rates and clear repayment plans. The flexibility and simplicity make them one of the most popular loan types in the country.

Requirements and How to Apply for a Personal Loan in Spain

To get a personal loan in Spain, you must meet basic eligibility criteria and provide standard documentation. Most lenders allow you to apply fully online, and the process is usually quick – often within 24 to 72 hours.

Common requirements

• Valid passport or national ID
• NIE number (for foreigners)
• Proof of income (payslips or tax returns)
• Spanish bank account
• Proof of address (utility bill or rental contract)
• Clean credit history

How to apply

1. Choose your loan amount and term
   Use a loan calculator to find the monthly payment that fits your budget.
2. Compare lenders
   Look at interest rates (TAE), fees, loan conditions, and early repayment options.
3. Prepare your documents
   Scan or photograph all required paperwork before starting the application.
4. Submit the application online
   Fill out the lender’s form with personal and financial details. Upload documents as requested.
5. Wait for approval
   Some platforms offer instant pre-approval. Final approval may take 1–3 business days.
6. Review and sign the contract
   Once approved, check the terms and sign digitally.
7. Receive the funds
   Loan amounts are usually transferred to your Spanish bank account within 1–2 working days.

Interest Examples for a Personal Loan in Spain

Below is an overview of typical personal loan offers in Spain, based on fixed interest rates for employed residents with stable income. Actual rates may vary by lender and profile.

Loan Amount	Term	Monthly Payment	APR (TAE)	Total Repayment	Notes
€5,000	36 months	€156	7.5%	€5,616	No fees, fixed rate
€10,000	60 months	€198	6.9%	€11,880	Early repayment allowed
€15,000	72 months	€253	6.5%	€18,216	Includes €200 setup fee
€20,000	84 months	€295	6.2%	€24,780	Used for home renovation
€25,000	96 months	€330	5.9%	€31,680	Requires full documentation

These examples assume no collateral and standard approval conditions. Your final offer may depend on income level, employment type, and credit history.

Personal Loan in Spain – Example

To better understand how a personal loan works in practice, here’s a full breakdown based on a real-world use case. In this scenario, the borrower is a full-time employee who needs funds for a family event abroad, such as a destination wedding or extended travel.

Loan Detail	Value
Loan Purpose	Family event/travel
Loan Amount	€8,000
Term	48 months
Monthly Payment	€189.32
Interest Rate (Nominal)	7.0%
APR (TAE)	7.8%
Total Repayment	€9,087.36
Origination Fee	€80 (1%)
Early Repayment Option	Yes, no penalty
Collateral Required	No
Disbursement Time	24–48 hours
Application Method	Online

Explanation of Key Terms:

• Loan Amount: The total amount borrowed, in this case €8,000.
• Term: The length of the loan – 48 months means the loan will be repaid over four years.
• Monthly Payment: A fixed monthly amount that includes both principal and interest. Here, it’s €189.32.
• Interest Rate (Nominal): The base yearly interest charged by the lender, not including fees.
• APR (TAE): The Tasa Anual Equivalente is the total cost of the loan per year, including interest and mandatory fees. This is the most accurate figure to compare loan offers.
• Total Repayment: The full amount the borrower will repay over the entire loan term – €9,087.36 in this example.
• Origination Fee: A one-time setup fee (1% of the loan amount). Some lenders waive this fee.
• Early Repayment Option: Allows the borrower to repay part or all of the loan early without extra charges.
• Collateral Required: Since this is an unsecured loan, no assets are used as security.
• Disbursement Time: The time it takes to receive funds after approval. Many online lenders can transfer money within 1–2 business days.

Uses of Personal Loans in Spain

One of the key advantages of personal loans is their flexibility. Unlike mortgages or car loans, personal loans in Spain can be used for nearly any private expense, as long as it’s legal and clearly stated in your application.

Here are the most common uses:

• Travel and holidays – Fund extended vacations, family trips, or destination weddings.
• Medical or dental bills – Cover high-cost procedures not included in public health coverage.
• Home improvements – Renovate kitchens, bathrooms, or upgrade appliances.
• Weddings and family events – Pay for venues, catering, and logistics.
• Debt consolidation – Combine multiple credit card balances or smaller loans into one monthly payment.
• Electronics or furniture – Finance large purchases like laptops, TVs, or sofas.
• Education or training – Pay for courses, certifications, or language schools.
• Emergency expenses – Handle unexpected costs like car repairs or urgent relocations.

Lenders typically don’t ask for proof of how the money is spent, but you may be required to specify the loan purpose when applying. Being clear and realistic can improve your chances of approval.

Secured vs Unsecured Personal Loans in Spain

Most personal loans in Spain are unsecured, meaning they don’t require collateral. However, some lenders do offer secured personal loans, which involve pledging an asset—such as savings, a car, or property—as security for the loan.

Unsecured Personal Loans

These are the most common type. You borrow a fixed amount based on your income and creditworthiness, without offering any asset as guarantee. Approval is faster, paperwork is minimal, and the loan can be used for almost any purpose.

However, unsecured loans usually come with higher interest rates and lower borrowing limits, especially if your income is modest or your credit history is limited.

Secured Personal Loans

With secured loans, you offer collateral in exchange for better loan terms. These loans typically have lower interest rates, higher approval chances, and larger loan amounts. But they come with risk—if you default, the lender can claim the asset to recover losses.

This option is more common for borrowers with low credit scores or those needing larger sums over a longer term. Not all lenders offer secured personal loans, and approval times are typically longer due to additional documentation and asset valuation.

Personal Loan Terms and Limits in Spain

Personal loans in Spain come with a wide range of amounts and repayment periods, depending on the lender, your income, and the loan’s purpose. Understanding these limits helps you choose a loan that fits your financial situation.

Loan Amounts

Most lenders offer personal loans from €1,000 to €50,000. Some may go as low as €500 or as high as €80,000, but approval for larger amounts requires strong income and credit history. For new residents or freelancers, maximum amounts are often more limited.

Loan Terms

Repayment periods typically range from 12 to 96 months (1 to 8 years). Shorter terms come with higher monthly payments but lower total interest. Longer terms reduce the monthly burden but increase the total cost of the loan.

Lenders may restrict maximum terms for smaller loans—for example, a €3,000 loan might be capped at 36 or 48 months. Always compare the total repayment amount and APR to understand the real cost over time.