As summer ends and autumn begins, Spanish households face the traditional ‘cuesta de septiembre’ (September slope) after the holidays, with back-to-school expenses and pre-holiday spending putting a strain on family finances. A recent survey reveals that in the face of persistent economic pressure, the Spanish public’s willingness to take on debt has climbed to its highest point in recent years.
1. Loan Demand Reaches Record High
According to the latest consumer loan survey report from the Spanish Association of Financial Users (ASUFIN), the proportion of consumers planning to apply for a loan in the next six months has reached 35.90%. This figure is the highest recorded since the organization began this survey in 2020.
The report’s analysis indicates that despite rising financing costs and high inflation, the Spanish public’s appetite for borrowing has shown a clear upward trend over the past few years. Apart from a brief dip in 2024 as consumers awaited potential interest rate cuts, credit demand has continued to rise, reflecting the growing financial needs of the population.
2. Economic Pressure Becomes the Main Driver for Borrowing
Unlike in the past, the main driver of current loan demand is no longer discretionary spending. Data shows that while 17% of loan applications are for travel and vacations, a larger portion is driven by financial pressure.
Specifically, 20.10% of applications are for immediate liquidity, while the proportion for refinancing existing debts has risen to 16.30%. Combined, these two categories, driven by economic hardship, account for 36.40% of all applications. ASUFIN has expressed concern over this trend, noting that nearly one-third of loan applications are merely to ‘rob Peter to pay Paul’ to get by, highlighting the severe erosion of household purchasing power due to inflation.
3. Rising Interest Rates and High Financing Costs
The surge in borrowing intentions is occurring against a backdrop of a tightening global interest rate environment. The report notes that the European Central Bank (ECB) is expected to raise interest rates at its next meeting, which will further drive up future refinancing costs.
Historically, public borrowing enthusiasm was initially influenced by the ECB’s rate-cutting cycle that began at the end of 2023, when the deposit facility rate was lowered from 4.5% to 2%. However, subsequent geopolitical conflicts triggered an energy crisis, forcing the ECB to resume rate hikes, with the benchmark rate now back up to 2.25%. This rate directly impacts the financing costs of mortgages, credit cards, and various commercial loans.
According to ASUFIN’s statistics, loan interest rates in Spain have been steadily increasing. For short-term loans with a term of up to 5 years, the average interest rate has risen from 9.88% in 2025 to 10.06% in 2026. The rate for long-term loans of over 5 years has also increased from 9.86% last year to 10.05% this year.
4. Spain’s Loan Costs Far Exceed Eurozone Average
Notably, the borrowing costs borne by Spanish consumers are significantly higher than in other Eurozone countries. Data shows that for consumer loans with a term of 1 to 5 years, the average interest rate in the Eurozone has slightly decreased to 6.93%.
In contrast, the equivalent loan rate in Spain has climbed to 10.06%. This means that under the same conditions, Spanish consumers are paying 3.13 percentage points more in interest than the Eurozone average, placing a particularly heavy financial burden on them.
