EU set to put ceiling on loans

The European Union went a step closer yesterday to imposing a 50,000-euro ceiling on consumer loans in a move that will also help ease fears over Greek households taking on too much debt. The European Commission said yesterday that the proposal, which will be debated by ministers next year, will also improve the rights of consumers against lenders throughout the EU. Consumer loans in Greece have become more popular in the last few years after the country joined the eurozone and borrowers could benefit from the low interest rate environment. However, high credit growth rates have raised questions about whether locals have taken on too much debt. The Commission said the proposal will also ensure that banks play by fair rules by requiring them to give information about elements such as annual percentage interest rates, fees and monthly repayments. «These information requirements coupled with the right to cancel a credit agreement… will help consumers avoid taking on more debt than they can afford,» the Commission said.