Personal Loans in Italy: TAEG, Your 14-Day Withdrawal Right and Where to Complain

Whether you live in Italy or have recently moved there, you will see adverts for “prestiti personali” from banks and finance companies, often promising fast approval for urgent needs. Italian consumer credit rules are based on EU law, with national rules added on top. Knowing the basics helps you compare offers and recognise when something is wrong.

This guide summarises the key rules and official resources in English. We do not quote rates or conditions for any Italian lender; always check the lender’s own documents.

Common types of consumer credit in Italy

Prestito personale: a lump sum repaid in fixed instalments, without having to state a specific purpose.
Prestito finalizzato: linked to a specific purchase, such as a car or appliance, often arranged in the shop.
Cessione del quinto: a loan repaid directly from salary or pension, a type of product common in Italy. Read its conditions and costs carefully.
Carta revolving: a revolving credit line on a card, often more expensive.

The TAEG: the number to compare

The TAEG (tasso annuo effettivo globale) is the Italian name for the annual percentage rate of charge defined in the EU Consumer Credit Directive. It includes interest and other costs you must pay for the credit, expressed as a yearly percentage, so it is the best figure for comparing offers of the same amount and term. Also compare:

TAN (the nominal interest rate), which excludes many costs.
The total amount payable.
The cost of any insurance, and whether it is required.

Information you must receive

Under the Consumer Credit Directive 2008/48/EC, lenders must give you pre-contractual information on a standard form, known in Italy as SECCI (Informazioni europee di base sul credito ai consumatori). It sets out the type of credit, amount, duration, TAN, TAEG, instalments, total amount payable and other key terms, in the same format for every lender.

The Bank of Italy’s financial education site, L’economia per tutti, explains these documents in Italian.

Your right to withdraw and to repay early

Withdrawal. The Directive gives consumers 14 calendar days to withdraw from a credit agreement without giving a reason. If you withdraw, you must repay the amount received plus interest accrued until repayment.
Early repayment. You have the right to repay all or part of the credit early. The lender may be entitled to fair compensation in some cases, within limits set by law.

Always check the exact procedure and deadlines in your contract.

Anti-usury thresholds

Italy sets maximum rates for loans under Law 108/1996. The Bank of Italy publishes the average effective global rates (TEGM) by loan category every quarter; usury thresholds are derived from them. See the Bank of Italy’s TEGM page. If an offer seems extremely expensive, compare it with the thresholds for its category.

Check who you are dealing with

Banks and finance companies in Italy must be authorised. The Bank of Italy publishes its registers and lists of supervised entities. Credit agents and brokers have their own registration requirements. Be careful with websites that imitate the names of well-known lenders.

Warning signs

Requests to pay fees before the loan is paid out.
“Guaranteed” approval without any check of your situation.
Contact only via messaging apps or social media.
Pressure to sign quickly or send copies of documents without a contract.

If something goes wrong

First complain in writing to the lender, which must reply within the deadlines set by its rules. If you are not satisfied, you can turn to the Arbitro Bancario Finanziario (ABF), an out-of-court dispute resolution system for customers of banks and financial intermediaries. Its official site explains how to file a claim. The Bank of Italy’s citizen services page also explains how to send complaints.

Learn how the Arbitro Bancario Finanziario works

Official dispute resolution body. We are not a lender or broker.

New EU rules

The EU has revised its consumer credit rules with Directive (EU) 2023/2225, which applies from 20 November 2026. Details depend on how Italy transposes it, so check the lender’s current documents and official sources.

A short checklist

Decide the amount and term you really need.
Ask two or three lenders for a SECCI on the same terms.
Compare TAEG, total amount payable and insurance costs.
Check the lender in the Bank of Italy registers.
Read the contract, especially early repayment and late payment conditions.
Keep copies of everything you sign.

Frequently asked questions

What is the difference between TAN and TAEG?

TAN is the nominal interest rate; TAEG includes interest and other mandatory costs, making it better for comparisons.

Can I cancel a loan after signing?

Under EU rules, you generally have 14 days to withdraw from a consumer credit agreement.

Is insurance mandatory?

It depends on the product. Ask the lender and check the SECCI.

Who handles disputes with lenders?

After complaining to the lender, you can turn to the Arbitro Bancario Finanziario.

Sources

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Opportuly Careers is an independent guide. We are not a bank, lender or credit broker, we do not receive applications and this article is general information, not financial or legal advice.