Who may lend money in Italy
Under the Consolidated Banking Act (TUB), lending to the public is reserved to banks and to financial intermediaries entered in the single register kept by the Banca d'Italia (Article 106). A person who lends professionally without authorisation commits abusive financial activity, a criminal offence.
This framework explains why Italy has relatively few informal commercial lenders operating openly. Most consumer credit reaches borrowers through banks, specialised finance companies, retailer point-of-sale financing and credit intermediaries, all of which must disclose the TAEG, the Italian equivalent of the APR.
Usury thresholds (tassi soglia)
Law 108/1996 sets the rules. Every quarter, the Ministry of Economy publishes average effective rates by loan category. The usury threshold equals that average increased by a quarter plus four points, with the margin never exceeding eight points. Charging above it is a crime.
Checking an offer against the threshold
Thresholds differ for personal loans, salary-assignment loans, revolving cards and mortgages, and for amounts above or below set bands. Borrowers can compare the TAEG in the SECCI pre-contract form with the current table published on the Bank of Italy website.
Consumer peer-to-peer lending
Platforms such as Smartika and Prestiamoci have offered consumer P2P loans, operating as authorised payment or financial institutions. Individual investors fund portions of loans after screening. Business crowdlending platforms now fall under the EU crowdfunding regulation, supervised by CONSOB and the Bank of Italy.
Cessione del quinto: Italy's distinctive loan
Employees and pensioners can obtain a loan repaid by direct deduction of up to one fifth of net salary or pension. Because repayment comes straight from the payroll or pension provider, and mandatory life and employment insurance is attached, lenders accept profiles banks refuse.
Who it suits and its limits
It suits permanent public and private employees and INPS pensioners, including those with past arrears. The term may reach ten years. The constraint is rigidity: instalments cannot be paused, and the overall cost should be compared carefully with ordinary personal loans.
Microcredit and anti-usury support
Microcredit under Article 111 TUB supports start-ups and the self-employed lacking collateral, often with a guarantee from the state SME fund and mandatory mentoring. Anti-usury foundations and the national prevention fund help over-indebted households that risk turning to loan sharks.
| Option | Who provides it | Cost control | Main documents |
|---|---|---|---|
| Personal loan | Bank or Art. 106 intermediary | Quarterly usury threshold | ID, codice fiscale, payslips |
| Cessione del quinto | Bank or intermediary | Specific threshold category | Salary or pension certificate |
| Consumer P2P loan | Authorised platform | Usury threshold, TAEG disclosure | Income proof, bank account |
| Microcredit | Microcredit operators, banks | Regulated terms, guarantee fund | Business project |
| Family loan | Relatives | Free agreement | Written agreement with certain date |
Credit registers
Lenders consult private credit bureaus such as CRIF and Experian, and the Bank of Italy's Centrale dei Rischi for larger exposures. Consumers must be notified before their first negative report, and they can request their data free of charge to correct errors.
Loans between relatives (prestito infrafamiliare)
Parents often help children buy a first home or start a business. Under the Civil Code, a loan is presumed to bear interest at the legal rate unless the parties agree otherwise, so an interest-free family loan should state this explicitly in writing.
Proof and tax considerations
Giving the agreement a certain date, for example by registration with the Agenzia delle Entrate or via certified email, helps show it is a loan rather than a gift. Transfers should be traceable, since the tax authority may question large unexplained movements.
Steps to borrow privately in Italy
The sequence below suits most applicants comparing a bank, a P2P platform, a salary-assignment loan or a relative, and it creates documentation useful in later disputes, inheritance questions or checks by the Agenzia delle Entrate.
- Request your report from CRIF and the Centrale dei Rischi.
- Verify the lender in the Bank of Italy's Article 106 register.
- Read the SECCI form and compare the TAEG with the usury threshold.
- Consider cessione del quinto only for long-term stable income.
- Write family loans down, stating interest and repayment dates.
- Use bank transfers and keep every receipt.
Mistakes and warning signs
Fraudulent offers in Italy often pose as private lenders on social media or classified sites, claiming to lend to cattivi pagatori. Recognising these warning signs protects both savings and personal data, including copies of identity documents and the codice fiscale.
- Being asked for a "spese di istruttoria" payment by Postepay top-up before a promised loan: authorised Italian lenders deduct costs from the loan or include them in instalments.
- Borrowing from a lender absent from the Article 106 register.
- Accepting a TAEG without checking the current usury threshold.
- Leaving an interest-free family loan undocumented.
- Using loans to cover gambling or prior loans.
Can a private individual lend money legally in Italy?
Yes, occasionally and to people they know, such as relatives or friends. What is prohibited is lending to the public on a professional basis without authorisation. Charging rates above the usury threshold is criminal in every case, even between private individuals.
Is the usury threshold the same for every loan?
No. The Ministry publishes thresholds by category and amount band, so a revolving card, a personal loan and a salary-assignment loan each have their own ceiling. The threshold in force when the contract is signed is the one that counts.
Does a family loan need to be registered?
Registration is not mandatory, but giving the document a certain date is advisable. Without it, the tax authority may argue the transfer was a gift, and other heirs may contest it during a later succession involving the lending parent.
Where can victims of usury get help?
Victims can report to the police or Carabinieri and contact an anti-usury foundation or association. The state Solidarity Fund for victims of usury can grant interest-free loans to those who have filed a complaint, supporting their return to legal credit.
Useful organisations and resources
- Ente Nazionale per il Microcredito: auxiliary services guidelines — Official guidelines on the mentoring and support services that must accompany microcredit loans in Italy.
- Tiresia (Politecnico di Milano) – PerMicro: microcredit in Italy — Case study of PerMicro, Italy's leading microcredit institution lending to families and micro-entrepreneurs without access to bank credit.
- Ente Nazionale per il Microcredito – Lotta all'usura tra leggi e decreti — Article in the National Microcredit Agency's journal on Italy's anti-usury laws and the anti-usury funds that support at-risk families.
Official and legal references
- Banca d'Italia: financial intermediaries under Art. 106 TUB — Central bank page on authorisation of non-bank lenders entered in the single register under Article 106 of the Banking Act.
- Edotto: usury thresholds for Q2 2026 — Summary of the quarterly usury thresholds by loan category that apply to Italian credit agreements in the second quarter of 2026.