Average of borrowing interest rates pursuant to Article 117a of Act No. 257/2016 Coll., on Consumer Credit, as amended

The average of borrowing interest rates is defined in Article 117a of Act No. 257/2016 Coll., on Consumer Credit (the Consumer Credit Act, CCA),^[1] for the purpose of reimbursement of costs for early repayment under Article 117(2) of the CCA for consumer credit for housing purposes pursuant to Article 2(2)(b) or (c) of the CCA to a creditor authorised to provide consumer credit for housing purposes. The average of borrowing interest rates refers to the average of borrowing interest rates on consumer credit for housing purposes negotiated during a period of three consecutive calendar months. The Czech National Bank calculates this average for every three consecutive calendar months for consumer credit for housing purposes divided into groups. The use of the average of borrowing interest rates for the purposes of reimbursement of costs for early repayment of certain consumer credit for housing purposes is regulated in Article 117a of the CCA, as amended, effective from 1 September 2024.

The CNB started to publish the averages of borrowing interest rates from August 2024.

For the purpose of reimbursement of costs for early repayment of certain consumer credit for housing purposes, consumer credit for housing purposes is divided into a total of 20 groups:^[2]

• based on the type of consumer credit for housing purposes, it is divided into purpose-specific loans (pursuant to Article 2(2)(b) of the CCA) and building society loans (pursuant to Article 2(2)(c) of the CCA). In both cases, it is further divided based on whether it is secured by a mortgage, and
• based on the comparable length of the period for which a fixed borrowing interest rate is agreed (divided into five time intervals: up to and including 1 year, over 1 year up to and including 3 years, over 3 years up to and including 5 years, over 5 years up to and including 10 years, and over 10 years).

Below are the links to data on the averages of borrowing interest rates:

• report in the OBIEE presentation tool;
• report in the ARAD public database.

---

^[1] Article 117a(1) of the CCA, as amended, effective from 1 April 2024 to 31 August 2024, and Article 117a(1)(g) of the CCA, as amended, effective from 1 September 2024.

^[2] See Decree No. 56/2024 Coll. on the determination of the comparable length of the period for which a fixed borrowing interest rate is agreed and the division of consumer credit for housing purposes into groups for the purpose of reimbursement of costs for early repayment of certain consumer credit for housing purposes.