Räntelag

Räntelag is a Swedish term that translates to "interest rate law." It refers to the legal framework governing interest rates in Sweden. This legislation primarily addresses how interest is calculated and applied in various financial transactions, including loans, mortgages, and credit agreements. The räntelag aims to ensure fairness and transparency in the lending market by setting certain rules and limitations.

Key aspects of the räntelag include provisions on default interest, which is the interest charged when a borrower fails to make a payment on time. The law typically specifies a maximum rate for default interest to prevent excessive charges. It also covers rules regarding agreed-upon interest rates, ensuring that these are clearly communicated and not usurious. The räntelag applies to both consumer and business loans, though specific consumer protection measures might be more stringent.

The purpose of the räntelag is to protect borrowers from unreasonable interest rates and to provide a stable and predictable legal environment for financial dealings. It also plays a role in maintaining the overall stability of the financial system by regulating credit practices. Amendments to the räntelag have been made over time to adapt to evolving economic conditions and to align with EU directives on consumer credit. Understanding the räntelag is essential for anyone involved in borrowing or lending within Sweden.