On 10 September 2025, Sovereign Ordinance No. 11.478 amended Article 2 of Sovereign Ordinance No. 2.271 of 6 July 2009 concerning the determination of usury thresholds in Monaco. The updated framework reduces the maximum legal rates for personal and mortgage loans while also revising overdraft limits. The new ceilings are as follows:
- Personal loans: reduced from 4.96% to 3.61%
- Mortgage loans: reduced from 4.69% to 3.34%
- Overdrafts for individuals: increased from 13.66% to 14.33%
- Overdrafts for businesses and sole traders: reduced from 6.59% to 4.39%
These adjustments reflect evolving market conditions and regulatory oversight aimed at balancing credit access with borrower protection. For lenders, they require the prompt review of loan documentation, pricing models, and ongoing contractual arrangements. For borrowers, the revised thresholds may directly influence lending terms, particularly in the context of cumulative or cross-border financing.
Our firm regularly advises both financial institutions and private clients on the structuring, negotiation, and review of loan agreements. This includes complex lending arrangements involving multiple facilities, international elements, or situations where the risk of exceeding statutory usury thresholds must be carefully managed.
With the new rates now in effect, ensuring that existing and future contracts remain compliant is essential. We assist clients in reviewing loan terms, identifying potential risks, and implementing appropriate contractual adjustments to safeguard both compliance and commercial objectives. Contact us here for any questions.
