Loans in Spain

Getting a loan in Spain is not such a simple decision, although the advertisements may seem like getting a loan is easy, and it doesn’t have to be that way. A high-quality and detailed review of the current financial situation is the initial step in any loan search.

Our Approach

In the following article, you will find options for taking a loan in Spain. You will also find all the information about loans in Spain so that you can decide for yourself which option is best for you.

In this text, we do not give you financial advice and everything you decide will be your decision.

When it comes to finances, you have to be extra careful, because the decisions you make can affect your life for a long time.

So be well-informed and do your complete research before making any decision.

Loans Options


Banco Bilbao Vizcaya Argentaria Colombia SA, – BBVA is one of the leading banks in the eurozone in terms of profitability and efficiency. It is part of a global financial group, with a diversified business offering financial services in more than 30 countries to 53 million clients.


  • Up to €75,000 and 8-year term.
  • Request it in less than 3 minutes.
  • With minimal documentation.
  • Opening commission : 2.30%.


  • You won’t have to go to the branch or open a new BBVA account and we will only ask you for the essential documentation.
  • If you apply for an energy efficiency loan you can get even better conditions.
  • Enter the name of your company or mutual in the simulator and find out if you have exclusive conditions for belonging to that group.

Banco Santander

Banco Santander, which began operations in Santander in 1857, is the biggest bank in Spain. With a focus on growth via acquisitions, the Spanish banking business has been busy since the year 2000.

It serves customers all around the world, including in Europe, South America, North America, and Asia. This company was placed #37 on Forbes’ Global 2000 list of the largest public firms in the world in May of 2016.


  • Fixed annual nominal interest rate of 6.85% fulfilling conditionsAPR 9.65% ) .
  • If you do not meet conditions, the fixed annual nominal interest rate will be 6.85% the first year and 8.60% the rest (APR 9.16%).
  • Opening Commission (financed) : 2.25% .
  • Convenience: because you choose the monthly installment you want to pay by selecting the amount and term that best suits you.
  • Flexibility: because you can return it up to 7 years.
  • Maximum amount €90,000.
  • Security: because day after day you are exposed to risks or difficulties that can alter your peace of mind or that of your family, you will be able to ensure payment of installments in the event of death, absolute permanent disability, temporary disability or unemployment.

Loans in Spain: Good to know

Spain has a very stable bank lending market with many seasoned institutions and customers. Bank loans, rather than debt securities, have historically been the preferred method of debt financing for Spanish businesses.

In reality, the pool of prospective issuers of debt instruments is substantially less in Spain than the pool of enterprises having direct access to bank loans. The degree of compliance necessary to join the debt capital markets has always been beyond the means or interest of all but the largest Spanish enterprises.

However, the number of SMEs issuing debt securities has expanded dramatically due to the formation of the Alternative Fixed Income Market, established in 2013 as a debt market for SMEs, who had previously depended nearly completely on the banking sector.

The Primary Advantages of Bank Loans More Than Debt Securities

  • The variety of deal sizes (from small to large debt volumes).
  • Bank loan conditions are more malleable, allowing them to be adjusted to meet the requirements of individual borrowers and projects.
  • The terms and timing of bank loans are independent of those found in the debt capital markets.
  • There is no need for a prospectus, registration, or listing.
  • There is a significant difference between the reporting duties associated with issuing debt instruments and the information commitments associated with doing so.
  • Waivers, revisions, and even a reorganization of the transaction are simpler to seek and secure.
  • The duration of time required to complete the transaction is reduced.
  • Loans from banks must be kept private.
Despite what has been said above, it is important to remember that accessing debt capital markets may be cheaper and more beneficial than incurring bank debt for some kinds of corporations, such as those with an investment grade rating.

Advantages & Disadvantages of Getting Loans In Spain

The benefits and drawbacks of taking out a home loan in Spain should be among your first priorities. Your individual and financial situation, as well as your long-term goals, will determine the ultimate amount.
  • The Advantages

Bigger budget

The ability to afford a larger or otherwise superior home is perhaps the largest perk. The extra money might make all the difference between an ordinary house and a dream home in locations that are sought after by international buyers. Don’t get your hopes up too high, however; most Spanish financial institutions won’t lend more than 60% of a property’s worth to non-locals.

More potential profit

Using a mortgage to acquire a property allows the buyer to put less of their own money into the transaction and offers the buyer more bargaining power in the eventual sale. When borrowing rates are low and real estate values are growing, investors should expect healthy profit margins (as is the case with the Costa del Sol property market in 2020). No one can say for sure that interest rates will remain low or that prices will continue to grow.

Extra due diligence

Before approving a mortgage loan in Spain, the lending institution will do a thorough evaluation of the property, including a check for any potential legal issues. This is an additional step in doing your due diligence on the property, however, a complete set of checks should have been performed if you’re using a lawyer to help with the acquisition. Connect to the buying procedure.

  • The Disadvantages

More Costs

The taxes and fees added to the price of a Spanish home are already rather substantial. This is exacerbated by the addition of mortgage payments. The expenses associated with a mortgage in Spain are broken out in further detail below.

Higher Risk

You can’t predict the future of your finances, therefore you may not always be able to afford your mortgage. Changes in interest rates are a regular occurrence. Even while the Euribor (the mortgage interest reference rate for Spain) is now at a record low, that may not be the case in the future. There is always a rise and fall in real estate values. Many Spanish homeowners with mortgages had negative equity during the recent crisis, although the market has since recovered. There is no assurance that this won’t occur again.

Personal liability

Mortgage debt in Spain is considered to be a private and illimitable obligation. This implies that the bank has the right to go after any of your assets, not only the Spanish property, in the event of a failure of payments. If the proceeds from the sale of your repossessed Spanish home are insufficient to pay off your mortgage, the bank might pursue any assets you have outside of Spain to satisfy the obligation.

Bottom line

You should evaluate your financial situation thoroughly and create a sensible spending plan for the acquisition. An intelligent financial move would be to acquire a Spanish mortgage if you are certain that you will be able to keep up with the monthly payments even if interest rates increase or your circumstances change. However, if you can’t, then it’s not to your best advantage to take out a loan.

spanish loans

Loans and Repayments For Outsiders

Mortgage payments may now be made in either euros or the borrower’s local currency. In this example, we will assume that you are British. It’s up to you whether you want to repay the loan in pounds or euros. And you’ll make that choice when you sign the mortgage papers. We’ve locked in a low-interest rate for the duration of your mortgage payments.

Given the above, it seems evident that you should apply for a mortgage in Spain rather than with a lender from your own country. Not only because it’s the cheapest option overall and might help you save money (as we’ve shown), but also because it simplifies the administrative process.

Loan with Your Spanish Mortgage?

Typically, banks will only lend a foreign buyer 60–70% of a property’s worth. However, if you can prove that you’ve been a Spanish resident and taxpayer for at least two years, you may qualify for a loan of up to 80% of the total cost.

When purchasing a bank-repossessed home, a buyer may be able to get a loan guaranteeing the whole purchase price. An important term to remember is “loan-to-value,” which refers to the ratio of the amount borrowed to the property’s worth. Moreover, it has decreased considerably since the implementation of the new legislation we discussed.

Interest Amount You Can Get

The response will be determined by the buyer’s profile (the appearance of financial stability to the bank). Compared to, say, the UK’s mortgage market, the Spanish system is quite straightforward.

The two main types of mortgages available here are fixed and variable. The interest rate on a fixed loan will be between two and four percent, while the interest rate on a variable loan will vary based on the Euribor and the buyer’s credit score (the variable rate will be compounded daily).

Car Loan in Spain

What is a car loan in Spain? If you have no money and want a new car in Spain, a car loans in Spain can help you buy it – whether the vehicle is new or used. If you get a car loan in Spain, you get money from the lender to buy the car. You must agree to the terms that you will repay the funds within a certain period of time, plus any fees and interest that have been agreed upon.

Types of car financing in Spain

There are 2 types of financing in Spain that you must consider if you decide to buy:


Bank car loans in Spain.

This is the most common loan application used to buy a new car in Spain. Some banks already offer the option of a car loan that is specifically intended for the purchase of a vehicle and that carries a fixed interest rate. This method of financing your new car allows you to buy a car from a dealer and pay for it immediately while repaying the loan to the bank in installments agreed upon in the contract.

Financing offered to you by the dealer

For several years now, manufacturers have been offering an internal financing service offered by the brand itself through its distributors. , especially for buying a car. In addition to offers, this type of financing includes a higher interest rate than with a bank and can present obstacles when it comes to paying off the loan before the contract expires. They also do not allow you in many cases to sell the car before the end of the financing, because the car book is not with you but with the bank.

Online Loans in Spain, All You Need To Know

Requirements and Online Loan in Spain Facilities

Have a loan pre-approved and be a Banco Santander client (you can check this in your Online banking or in the Santander App). In the event that you have not already been approved for a loan, you may have us investigate your needs and recommend the best course of action by calling you.

Through the Santander app or Banca Online, in just a few easy steps and with no papers required. Use the Internet to access your bank account. When logged into the Santander mobile app. Choose the right loan choice for your situation from the available ones provided by the system. Get a car loan or a personal loan. Please specify how much money you need. The amount you may borrow ranges from €3,000 to €50,000. Decide on a payback period In the range of 48–84 months.

You may finalize the loan agreement with an electronic signature after reading and agreeing to the terms. Your bank account will be updated instantly with the specified amount. Loans that have already been pre-granted2 to borrowers are processed quickly since the bank has already done an initial assessment of the borrower’s financial situation.

Loans in Spain Fast Online Process

You may acquire a loan of up to €50,000 in a matter of minutes, no matter where you are, with this convenient and fast fixed-rate loan exclusively for Santander clients. Evaluate the market’s leading solutions and choose the one that works best with your lifestyle. In only 15 minutes, you may have your cash in hand.

Learn more about their services, the greatest deals on mini-credits, and what to look out for while working with them, all on their user-friendly website. You may obtain up to 300 Euros with the online mini-credits with only one application. They serve as a last resort in times of severe financial stress.

They usually get paid back in a lump sum once a month has passed. Mini loans may be applied for online in as little as 10 minutes and need no documentation. Only if we are certain in our ability to pay them back should we make the request.

loan spain

Top Banks for Loans in Spain

Banco Santander

Banco Santander, which began operations in Santander in 1857, is the biggest bank in Spain. With a focus on growth via acquisitions, the Spanish banking business has been busy since the year 2000. It serves customers all around the world, including in Europe, South America, North America, and Asia. This company was placed #37 on Forbes’ Global 2000 list of the largest public firms in the world in May of 2016.

It is the second-biggest bank in Spain and part of a multinational financial conglomerate. It was formed after Banco Bilbao Vizcaya and Argentaria merged in 1999. The bank, which was established in 1857, serves 72 million people in more than 30 countries. BBVA has a massive international branch network.

It’s not only a major player in the Spanish banking sector; it’s also the largest bank in Mexico. It also has significant operations in the Sunbelt area of the United States, Turkey, and South America.


It has the third-highest market capitalization among Spanish banks. It also has the largest branch network in the nation, with 5,397 locations serving a total of 15.8 million people. CaixaBank is a Spanish financial services provider based in Valencia that was once known as Criteria CaixaCorp. The bank has diversified into oil and gas corporation Repsol and telecoms giant Telefónica in addition to universal banking and insurance.

Banco de Sabadell

Several Spanish banks, together with their linked banks, brand, and subsidiaries, make up the fifth-largest Spanish banking conglomerate. It caters to both small and medium-sized businesses and the wealthy who participate in international commerce by providing a variety of financial services.

loan in spain


Bilbao Bizkaia Kutxa (BBK), Gipuzkoa, and other Basque financial institutions had a banner year in 2012. Donostia Kutxa (Kutxa) and Caja Vital Kutxa (Vital) amalgamated to establish KutxaBank, which ceased operations as savings banks in Spain. The merger occurred after extensive in-house discussion and coordination in order to meet the Spanish government’s deadline. There are now branches of the bank throughout Andalusia and Extremadura. According to the European stress test, which evaluates banks’ ability to weather financial crises, KutxaBank ranked first among Spanish financial institutions in 2014.

Caja Rural Group

Caja Rural Group was established by the country’s 4,000 rural credit unions and now has 74 members. Cajas Rurales, the group’s credit cooperative bank, provides a variety of specialized and customized banking products and services by drawing on in-depth knowledge of the local market and strong ties to the regions they serve.

Unicaja Banco

Unicaja Banco, based in Malaga, is a retail bank that primarily serves customers in Spain’s southern regions. In 1991, the Spanish savings bank was established as a result of the consolidation of five preexisting financial organizations in the nation.

Common Forms of Bank Loan Facilities

Term loans and credit facilities, which allow the borrower to re-borrow sums previously prepaid, are the most prevalent types of bank lending facilities.

Term loans, credit facilities, issuance of letters of credit normally issued, upon request from the borrower, to specified beneficiaries by one or more issuing banks lenders under the facility, and ancillary banking products and services like factoring and confirming are all examples of the types of loans and sub-facilities that can be included in a bank loan in Spain facility.

Describe the types of investors that participate in bank loan financings and the overlap with the investors that participate in debt securities financings

Bank loan financings often attract institutional investors from the banking and credit sectors. Direct lending operations to Spanish borrowers have been undertaken by new companies in recent years, mostly alternative investment funds.

Direct lending participants’ offer is, nonetheless, complementary to bank loan financings. Over the next several years, direct lending participants are predicted to grow both the size of the sums they fund and the depth of their specialization. Private and institutional investors are the usual backers of debt securities financings.

How are the terms of a bank loan facility affected by the type of investors participating in such a facility?

The objective and characteristics of each transaction, as well as the kind of investors involved, determine the specifics of the conditions of bank lending facilities issued in Spain. If the bank loan facility is granted bilaterally by a Spanish bank, the bank will either propose its standard transaction documents or provide bespoke documents that include certain fairly standard market provisions in addition to the specific provisions to adequately mitigate any risks involved in the transaction.

If the bank loan facility is granted on a syndicated basis, the banks will use transaction documents with standardized provisions in line with the terms one would expect in other European jurisdictions (subject to the specifics in the jurisdiction), such as following Loan Market Association standards or even adopting the available Spanish LMA forms.

In cases when a majority of the banks in the banking syndicate are located outside the country, it is not uncommon to write facility agreements (but not the security package) according to the laws of a foreign jurisdiction, most often those of England and Wales.

How do the structure and terms of bridge facilities deviate from those of a typical bank loan facility?

In our jurisdiction, committed acquisition financings and project financings often employ short-term bank credit facilities as bridges. Bank loans in Spain facilities have also been employed as a temporary means to permanent debt security financings in recent years. The bridge facilities can take the form of a revolving credit facility or a term loan with short-term and margin step-up features to incentivize the issuance of permanent debt security financings, which are consistent with the structures and terms of bridge financings implemented in other European jurisdictions.

What role do agents or trustees play in administering bank loan facilities with multiple investors?

Whenever there are numerous investors in a Spanish bank loan facility, the majority of the lenders will choose to have a third party (the “facility agent”) handle the day-to-day management and administration of the loan on their behalf. One of the syndicate members normally takes up this duty.

Some companies, however, have emerged in recent years as expert providers of agency-related functions like loan management, covenant monitoring, payment management, and back-office related functions, particularly in the context of large debt refinancing and restructuring processes where a great deal of additional agency-related workload is expected.

It should be noted that the facility agent will be paid an annual agency fee by the borrower, and the other lenders will be liable to reimburse the facility agent on a pro rata basis for any expenses or losses incurred by the facility agent in the course of fulfilling its duties.

Spanish banks prefer to be direct beneficiaries of the security package (and undisputed secured creditors), even when there are multiple beneficiaries of the specific security, the enforcement of which will require the adoption of the relevant formal adoption of agreement to do so.

Collateral agents are permitted in our jurisdiction (as such, they would hold the security granted in their own name and on behalf of the other syndicate members). You should know that trusts are not recognized by Spanish civil law.

private loan in spain
Describe the primary roles and typical fees of the financial institutions that arrange and syndicate bank loan facilities

The key functions and usual fees of financial organizations that arrange and syndicate bank credit facilities are:

  • The charge should be paid to the arranger for facilitating the bank lending facilities (typically a percentage of the total commitments in respect of the bank loan facilities).
  • A yearly agency fee (often established based on transaction size, number of obliges, countries, members of the syndicate, and estimated administrative burden) will be paid to the facility agent; and
  • Each lender has the option of charging a commitment fee on any portion of the loan that has not yet been taken down (representing a percentage of the respective commitments).
  • Prepayment fees, cancellation fees, and waiver fees are all examples of additional charges that might be negotiated on a case-by-case basis. The facilities agreement or a separate fee letter may be used to establish fees, and either can be treated as a financing instrument for the appropriate reasons.
home loans in spain


Banco de Espaa, Spain’s national supervisor of banks under the Single Supervisory Mechanism of the Eurozone, is the country’s central monetary authority (SSM). Spain’s central bank, which was founded in 1782, is a participant in the European System of Central Banks. Credit, stock, and money markets, as well as derivatives markets, are all a part of Spain’s interconnected banking system.

The Spanish Central Bank is not required to provide permission to a foreign bank that already operates legally in another EU member state and wants to open a branch or rep office there. The terms and criteria for entering Spain’s banking system are the same for both domestic and international institutions.

Since Moody’s Investors Service anticipates a continuous decline in problem loans and steady profitability in 2017 and 2018, the Spanish banking sector has been assigned a stable outlook. The assessment from the rating agency shows how reliable Spain’s banking sector will be during the next 12-18 months. This list of the best banks in Spain is a great resource for anybody thinking about a future in the financial sector in Spain.

Check out our comprehensive list of banking options for additional info. As repayment freezes are removed and indirect consequences of the Ukraine conflict show up in credit portfolios, the deputy governor of the Bank of Spain said on Tuesday that Spanish banks must closely monitor risks and a possible surge in bad loans on state-backed funding issued in the region.

Deputy Governor Margarita Delgado stated, “There are still numerous uncertainties surrounding the economy, currently fanned by the Ukraine crisis, and so we must be cautious about the development of the loans, much more so now that the grace periods of the loans guaranteed by the ICO will begin to be withdrawn.” Small and medium-sized businesses, as well as sole proprietors, may get loans of up to 80% of their value via banks thanks to a program dubbed “ICO liquidity lines,” which the government authorized up to 140 billion euros ($155.39 billion) for in 2020.

On Tuesday, the government green-lighted a fresh round of soft loans worth 10 billion euros with a 12-month moratorium on principal payments.

Loans in Norway

If this is your first time taking loans in Norway. You may be confused about the procedure and how to perform it. We’re here to guide you about the loan in Norway. First of all, we are not a borrower, and second, we do not have any funds to provide you.

Loans in France

If you are looking for loans in France, you will find that there are plenty of options to choose from. You can take out an online loan, a car loan, or a private loan. If you’re looking to buy a house, you may be able to get a home loan. You may also be able to get student loans if you’re going to school in France.

Loans in Ireland

Money is essential in every aspect of our lives. Sometimes we really want to buy our favorite things. But we aren’t able to buy it because we don’t have enough money. These are the situation where loans can help. Loans in Ireland come in several forms to accommodate a wide range of situations and budgets. Banks can give out both secured and unsecured loans.

Loans in Italy

But why do we take up loans? Today, most people take loans due to different reasons. While some are based on personal reasons, others are entirely based on commercial or business factors. In the next few sections, we will be answering questions on where, how, why, what, and which loans are available for you in Italy.

Loans in Poland

There are many banks that offer loans in Poland online, but not all of them have good terms. But don’t worry, here in this article we have discussed all those favorable banks which offer loans with the best terms and conditions.

Loans in Finland

But why do we need a loan? Most people take up loans due to so many reasons. They include buying a new car, a new house, starting a new business, vacation, etc. A loan can help you get anything you want in Finland. But there are some things you need to understand about loans in Finland.

Loans In Greece

If you are looking for a loan in Greece, and you want to know the best place to find loans, then this article is perfect for you. You will be able to find the essentials about the application process, the different types of loans, and the rates.

Loans In The Netherlands

Are you looking for loans in the Netherlands? Do you want to know what a loan is and what to consider before applying for a loan? Then this article is for you. Here you can find all about loans and taking loans in the Netherlands.

Loans in Switzerland

Loans in Switzerland are very popular. The meaning of a loan or credit in most countries is the same, but taking a loan in all countries is not the same.
It is not important to know all types of loans and their peculiarities, but it is important to familiarize yourself with the terminology that is used and the details that should be paid attention to.

Loans in Denmark

Do you need a loan in Denmark? Do you wish to understand a loan, and what factors to evaluate before obtaining one? Then this is the article for you. This article teaches you all you need about loans and borrowing money in Denmark.