Experts Discuss the Responsible Lending Principles in Estonia and How They

It is crucial to uphold responsible lending principles to protect the interests of consumers within the financial sector. FoxyCredit, a financial company, conducted a comprehensive study on responsible lending principles in Estonia and contrasted them with the ones in Poland. Now, let’s examine the data and figures more closely.

Affordability Assessment

According to research, lenders in Estonia must perform comprehensive assessments of borrowers’ financial capabilities before granting loans. In 2022, the average monthly salary in Estonia was roughly 1,775 EUR, and borrowers had an average monthly loan payment of about 239 EUR. This suggests that the typical loan payment in Estonia is reasonable, as it does not surpass 30% of the borrower’s monthly net salary.

Similarly, lenders in Poland evaluate a borrower’s creditworthiness. However, Poland’s average monthly net salary was significantly higher at approximately 1,381 EUR in 2022, and borrowers had an average monthly loan payment of around 249 EUR. 

This indicates that the typical loan payment in Poland stays within the 30% threshold of the borrower’s monthly net salary, reflecting a comparable approach to evaluating affordability as in Estonia.

Interest Rate Caps

Poland has set an interest rate cap on consumer loans to deter predatory lending practices. The maximum annual percentage rate (APR) for consumer loans in Poland was 10% in 2021. This action shields borrowers from excessively high-interest rates and encourages responsible lending behaviors.

On the other hand, the maximum APR for consumer loans in Estonia was limited by law with the Consumer Credit Act, which came into effect in 2017. It established a cap on the APR that can be charged for consumer credit.

According to the law, the maximum APR that can be charged on consumer credit is 3 times the reference rate set by the European Central Bank (ECB) for the most recent calendar year, plus 20 percentage points. As of 2021, the reference rate set by the ECB was 0%, so the maximum APR that could be charged on consumer credit in Estonia was 20%.

Credit Limits

To avoid over-indebtedness, lenders in Poland must establish credit limits for borrowers. The borrower’s credit limit in Poland is according to their income, expenses, and existing debts, with a maximum cap of 65% of their disposable income.

The borrower’s credit limit in Estonia has a maximum cap of 42% of disposable income. Nevertheless, lenders must undertake thorough affordability assessments to guarantee that borrowers can manage the loan without experiencing excessive financial burdens.


The safeguarding of consumers in the financial industry necessitates the implementation of responsible lending principles. Estonia and Poland have established comparable responsible lending principles, such as affordability assessments, transparent loan disclosures, and responsible marketing practices. Nevertheless, Poland has enacted additional various rules. These include interest rate limits, credit limits, and payment plan provisions. These are in place to offer further safeguards for borrowers.