Consumer and cash loans in Montenegro 2026: the maximum allowed rate of 14.08%, 14-day withdrawal, early repayment fees and complaints to the Central Bank

Under the Consumer Credit Act of 2025, the effective interest rate on a consumer or cash loan may not exceed the average rate on all consumer loans plus 100%. Since 20 July 2026 that cap has been 14.08%, with an average of 7.04%. You can withdraw from a loan agreement within 14 days without giving reasons, and you can repay a loan early at any time; a fee is possible only on a fixed rate and is at most 1%, or 0.5% if a year or less remains. On a mortgage there is no early repayment fee. If the bank rejects your complaint, since July 2026 you can turn to the Central Bank.

This guide explains the maximum allowed rate, the right of withdrawal, early repayment, the bank's duties when you fall behind and how to complain.

What is the maximum allowed rate?

• At the end of each quarter the Central Bank sets the weighted average effective rate on all consumer loans in the Credit Registry and publishes the maximum allowed rate.
• Lenders must apply the new cap within five days of publication.
• The effective interest rate includes interest and fees, so compare offers by it rather than by the nominal rate.
• The average effective rate on new loans to individuals in June 2026 was 6.84%.

How do you withdraw from a loan?

• You can withdraw from a loan agreement without giving reasons within 14 days of signing it, or of receiving the required terms and information if they arrived later.
• You notify the lender in writing, on paper or another durable medium, before the deadline.
• Within 30 days of sending the notice you repay the principal and the interest for the time you used the money.
• The lender has no right to any other fee, except the cost of certifying the contract and documents.
• A contract for an ancillary service linked to the loan, such as insurance, no longer binds you.

How much does early repayment cost?

• You can repay a loan early at any time, in part or in full, with a reduction in interest and costs for the remaining period.
• A fee is possible only for a period with a fixed interest rate and only if early repayments exceed 10,000 euros in 12 months.
• The fee is at most 1% of the amount repaid early, or 0.5% if no more than 12 months remain, and may not exceed the interest you would have paid until the end.
• There is no fee on a mortgage, an overdraft, a variable-rate period or repayment from loan insurance.
• On request, the bank immediately gives you a calculation of the effects of early repayment.

What if you fall behind on instalments?

• Before granting a loan the bank must assess your creditworthiness and, where needed, check the Credit Registry.
• The bank must have procedures to spot clients in difficulty early and contact them.
• Before enforcement the bank must take reasonable steps to agree a repayment plan and propose relief in writing.
• The bank may not charge a client in difficulty extra fees for late payment, other than default interest.

How do you complain?

• You complain to the bank or credit intermediary, which decides immediately or, in more complex cases, within eight days.
• If the bank does not decide in time or rejects the complaint, you can file a request for protection with the Central Bank; this has applied since July 2026, when an amendment removed its postponement until EU accession.
• For lenders not supervised by the Central Bank, the request goes to the market inspectorate.
• You can also use out-of-court consumer dispute resolution or go to court.
• The law does not apply to overdrafts repayable within a month, interest-free loans with costs up to five euros and certain types of leasing and pledges.

Mortgages are explained in our guide to mortgages in Montenegro, and selling a mortgaged flat in our guide to selling a property with a mortgage. Checking your debts is covered in our guide to the Credit Registry, and wage garnishment in our guide to bailiffs.

Frequently asked questions

What is the maximum allowed interest rate on a cash loan in Montenegro? Since 20 July 2026 the maximum effective interest rate on consumer loans is 14.08%, and the Central Bank updates it every quarter.

Can I withdraw from a loan after signing? Yes, within 14 days without giving reasons, repaying the principal and the interest for the time you used the money within 30 days.

How much does early repayment of a cash loan cost? On a fixed rate at most 1% of the amount repaid early, or 0.5% if a year or less remains, and only if you repay more than 10,000 euros in 12 months.

Is there an early repayment fee on a mortgage? No, on a mortgage the bank has no right to an early repayment fee.

Where can I complain if the bank rejects my complaint? File a request for protection with the Central Bank, or use out-of-court dispute resolution or the courts.

Can a bank charge extra costs if I am late with an instalment? No, the bank may not charge a client in payment difficulty extra fees, other than default interest.

Sources

The maximum rate, withdrawal, early repayment, duties in case of arrears and complaints are set by the Consumer Credit Act (Official Gazette 15/2025, Articles 8, 30, 45, 47, 48, 52, 64 and 65), and the application of requests to the Central Bank by the Law amending the Consumer Credit Act (Official Gazette 87/2026). The maximum allowed and average rates are published by the Central Bank on its consumer credit page, and the rate on new loans by the Central Bank Bulletin 7/2026. The information was checked on 27 September 2026. Fijaka is a classifieds platform; this text is not financial advice.