Unregulated consumer finance companies
Companies that currently grant consumer credit without being within the Bank of Spain’s perimeter. With the reserved activity, they either come in through one of the three license types or stop operating.
EFCAL: what it is, requirements and authorization
The limited-activity financial credit establishment is a new type of entity in the consumer credit draft bill: a simplified regime with no prudential requirements, supervised by the Bank of Spain. What it will and will not be able to do, and how it differs from an EFC.
Page reviewed and updated: August 2026
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- Applications before the Bank of Spain
- Consumer Credit Directive
- Directive (EU) 2023/2225
- Real estate credit law
- Law 5/2019
- EFC reserved activities
- Art. 6 of Law 5/2015
Draft legislation: what you are reading is not yet in force
The EFCAL is a type of entity provided for in the draft Consumer Credit Agreements Bill, given first-round approval on January 7, 2026. It does not exist yet: there is no open register, there are no authorized entities and its requirements are not enforceable. Several of its parameters, including the minimum capital, are not settled in the available text.
All the figures on this page come from the text submitted to public consultation and from the official notes of the Council of Ministers and the Ministry of Economy, Trade and Business. They may change during the parliamentary process. We update this page whenever there is a milestone. Last reviewed: August 2026.
Definition
What is an EFCAL
An EFCAL (establecimiento financiero de crédito de actividad limitada) is a limited-activity financial credit establishment: an entity authorized and supervised by the Bank of Spain to grant loans and credit, under a simplified regime based on that of financial credit establishments (EFCs) but without prudential requirements. It is a new type of entity, provided for in the draft consumer credit agreements bill, and as of today it does not exist yet.
The underlying idea is proportionality. By reserving the granting of consumer credit to entities registered and supervised by the Bank of Spain, the legislator faces a practical problem: requiring every finance company to meet the full prudential regime of an EFC would push solvent, mid-sized operators out of the market. The EFCAL is the answer: the same supervision, a lighter prudential burden, a narrower scope of activity.
Regime
Simplified
Based on the EFC regime, without prudential requirements, according to the official note from the Ministry of Economy.
Supervisor
Bank of Spain
Authorization, registration and supervision, as for the other entities within the regulatory perimeter.
Legal basis
Law 5/2015
The new entity type would be introduced by amending the regime for financial credit establishments.
Scope
What it will and will not be able to do
The “limited activity” in its name is not decorative: it describes the scope of the entity precisely.
It will be able to
- Grant loans and credit, including mortgage loans subject to Law 5/2019 regulating real estate credit agreements.
- Grant credit without a mortgage guarantee, within the general regime of cost limits.
- Carry out the ancillary activities involved in managing its loan portfolio.
It will not be able to
- Carry out the other activities in Article 6 of Law 5/2015 reserved to financial credit establishments.
- Operate as a payment institution or as an electronic money institution. If your model also needs to issue or acquire payments, this license type falls short.
- Take repayable funds from the public on the terms reserved to credit institutions.
This last boundary is the one that drives the most decisions in practice. Many consumer finance projects come with an account, a card or a wallet, and that is no longer lending activity: it requires a payment institution or electronic money license, or an agreement with an authorized third party.
Comparison
EFC, EFCAL and high-cost lender
All three are different entry points into the same business. In practice, this table is the first decision in any project.
| EFC | EFCAL | High-cost lender | |
|---|---|---|---|
| Nature | Specialized lending institution | Lending institution under a simplified regime | Authorized lender, not a credit institution |
| Prudential requirements | Full regime (solvency, own funds, reporting) | No prudential requirements | The prudential regime for credit institutions does not apply |
| Minimum capital | Law 5/2015 regime | To be confirmed in the final text | €300,000 |
| Activities | Broad list in Art. 6 of Law 5/2015 | Loans and credit, with or without a mortgage guarantee | High-cost credit only |
| Cost limits | General regime by APR (TAE) bands | General regime by APR (TAE) bands | Its own fixed regime (4% per month, 5% fee · max. €30) |
| Payment institution or EMI | Requires an additional license | Not allowed | Not allowed |
| Supervisor | Bank of Spain | Bank of Spain | Bank of Spain |
What is not settled yet
What will an EFCAL’s minimum capital be?
We prefer to say it plainly: as of today, there is no confirmed figure.
A figure of €5 million is circulating in some industry alerts. It does not appear in the Council of Ministers summary of January 7, 2026, in the Ministry of Economy’s press release or in the information published by the Bank of Spain, and there are reasonable grounds to think it may correspond to another entity type in the same legislative package (a limited-scope financial credit establishment in the mortgage field) rather than to the consumer credit EFCAL.
What is confirmed by an official source is the principle that shapes the entity: “EFCALs will have a simplified regime based on that of financial credit establishments (EFCs), without prudential requirements.” In other words, there will be a capital requirement, but the regulatory weight will lie not in ongoing solvency but in authorization and conduct rules.
We will update this page as soon as the final text sets the figure. If you are sizing a project right now and need to work with a scenario, it is best to use ranges and a corporate structure that allows for capital increases, rather than setting the capital on an unconfirmed figure.
Terminology
“Limited activity” or “limited scope”?
You will see both names, and it helps to know why. The Ministry of Economy’s press release and the information note from the Directorate-General for Consumer Affairs refer to “Establecimientos Financieros de Crédito de Actividad Limitada” (limited-activity financial credit establishments); the Council of Ministers summary speaks of “ámbito limitado” (limited scope). The acronym EFCAL is common to both.
Until the final text sets the legal name, we use “actividad limitada” (limited activity), because it is the term used by the two most recent ministry sources, and we include the variant here so that anyone searching for either term finds the same information. It is not a minor distinction in practice: the exact name will be the one that appears in the Bank of Spain register and in the company’s articles of association.
Who it is for
Who should already be looking at this entity type
Retailers with in-house financing
Chains and marketplaces that finance their sales in installments. Deferred payment falls within the scope of CCD2, and financing is no longer an ancillary function of the business.
Direct lending vehicles lending to individuals
Alternative financing structures with exposure to consumers. Here you should also look at the regime for loan origination by funds, which has its own rules.
Lending fintechs
Digital lending platforms that currently operate under agency agreements or through third parties. The value chain will have to be rebuilt with the license in the right place.
Real estate lenders
The EFCAL will be able to grant mortgage credit subject to Law 5/2019, which opens an alternative route to registration as a real estate lender.
Groups with a captive finance company
Automotive, equipment and distribution groups with their own finance company: they must decide whether the finance company becomes an EFCAL or whether lending is outsourced to an authorized third party.
Preparation
What you can start doing before the law is approved
There is no need to wait for the BOE to make progress. Much of the application does not depend on the final wording.
Decide on the license type
EFC, EFCAL or high-cost lender. It depends on the product, the cost at which credit is granted, whether an account or a card is needed and the product range you are aiming for over three years. It is the most expensive decision to correct.
Organize the corporate structure
Capital company, corporate purpose, shareholding structure and chain of control up to the beneficial owner. Every qualifying holding will have to prove good repute.
Document the suitability of the management body
Track record, industry experience, no criminal record and no sanctions in the financial sector. It is the part that takes longest to gather when there are non-resident directors.
Write the program of operations
Product, channels, pricing policy within the limits, creditworthiness assessment, outsourcing and projections. It is the document the supervisor reads first.
Set up the AML/CFT system
A credit institution is an obliged entity from day one: AML/CFT manual, risk assessment, internal control body and training. It is a common reason for requests for information in license applications.
Review your scoring and data
The draft bill prohibits using social media data and special categories of personal data to assess creditworthiness. If your model uses them, it has to be rebuilt and the change documented.
Key concepts
Glossary
Financial credit establishment
Specialized lending institution governed by Law 5/2015, with a full prudential regime and a closed list of activities.
Limited-activity EFC
New entity type with a simplified regime and no prudential requirements, for granting loans and credit under Bank of Spain supervision.
Solvency and own funds
The set of capital, liquidity and reporting requirements that credit institutions must meet. The EFCAL would fall outside them.
Law 5/2019
Spanish law regulating real estate credit agreements. The EFCAL could grant mortgage credit subject to it.
Activity reserved by law
Only entities registered and supervised by the Bank of Spain will be able to grant consumer credit.
UBO
The natural person who ultimately controls the entity. Identifying them is an inseparable part of the authorization application.
Frequently asked questions
EFCAL: common questions
What is an EFCAL?
A limited-activity financial credit establishment: an entity authorized and supervised by the Bank of Spain to grant loans and credit, under a simplified regime based on that of EFCs but without prudential requirements.
It is a type of entity provided for in the draft consumer credit agreements bill, and it does not exist yet.
How does it differ from an EFC?
In regulatory burden and in scope. An ordinary EFC bears the full prudential regime (solvency, own funds, reporting) and may carry out the broad list of activities in Article 6 of Law 5/2015.
The EFCAL would have the same supervisor and an equivalent authorization procedure, but no prudential requirements, and its activity would be limited to granting loans and credit.
Is it called “limited activity” or “limited scope”?
Both names are used. The Ministry of Economy’s press release and the Consumer Affairs information note speak of “actividad limitada” (limited activity); the Council of Ministers summary speaks of “ámbito limitado” (limited scope). The acronym EFCAL is common to both.
The final legal name will be the one set by the approved text, and it is the one that must appear in the articles of association and in the Bank of Spain register.
What minimum capital will it require?
It is not confirmed. A figure of €5 million is circulating, but it does not appear in the Council of Ministers summary, the Ministry of Economy’s note or the Bank of Spain’s information, and there are signs that it may correspond to another entity type in the same legislative package.
What is officially on record is that the regime will be simplified and without prudential requirements. We will update this page as soon as the final text sets the figure.
Who authorizes and supervises it?
The Bank of Spain, as for the other entities within the perimeter. The draft bill gives it responsibility for the authorization, registration and supervision of consumer credit lenders and intermediaries.
According to the Ministry of Economy’s official note, “only financial entities registered and supervised by the Bank of Spain will be able to grant consumer loans.”
Does it have prudential requirements?
No. That is precisely its defining feature: the Ministry of Economy’s note states that “EFCALs will have a simplified regime based on that of financial credit establishments (EFCs), without prudential requirements.”
The regulatory weight shifts from ongoing solvency to authorization and conduct rules.
What activities will it be able to carry out?
Granting loans and credit, including mortgage loans subject to Law 5/2019 regulating real estate credit agreements, and credit without a mortgage guarantee.
The other reserved activities in Article 6 of Law 5/2015 would be excluded.
Can it take deposits or issue electronic money?
No. An EFCAL will not be able to operate as a payment institution or as an electronic money institution, or take repayable funds from the public on the terms reserved to credit institutions.
If your project includes an account, a card or a wallet, that component will require a payment institution or electronic money license, or an agreement with an authorized third party.
How will authorization be applied for, and how long will it take?
The procedure will follow the usual pattern for Bank of Spain authorizations: an application with a program of operations, an organizational report, the shareholding structure, documentation on good repute and suitability, and proof of capital.
The specific time limits for the EFCAL procedure are not set in the available text. As a reference, the high-cost lender procedure would have a three-month decision period, and the application would be deemed rejected if there is no decision in time.
Will an existing lender have to become an EFCAL?
It will depend on its product. Lenders granting consumer credit within the general cost-limit regime will have to come in as an EFC or an EFCAL; those granting it above those limits will need the authorized high-cost lender license.
The draft bill provides for transitional provisions for those already operating, but the specific deadline is not settled in the available text.
Can an EFCAL be used to grant mortgages?
The text provides that it may grant mortgage loans and credit subject to Law 5/2019 (LCCI). It would therefore be an alternative route to registration as a real estate lender for those who want to operate with the structure of a supervised entity.
The choice between the two routes depends on volume, the source of funds and whether you also want to grant consumer credit.
When will it become mandatory?
There is no fixed date. The draft bill was given first-round approval on January 7, 2026, and its entry into force will depend on its final approval and publication in the BOE.
November 20, 2026 is the date of application of Directive (EU) 2023/2225, not of the Spanish law.
Will your finance company need to come within the Bank of Spain’s perimeter?
The reserved activity leaves no middle ground: either you obtain one of the three licenses or you stop granting consumer credit. Choosing the right license type is the first step and the hardest to correct.
Contact
Book a call
Tell us what credit you grant and with what structure, and we will tell you which license type fits you.
The EFCAL within the consumer credit reform
The limited-activity financial credit establishment (EFCAL) cannot be understood in isolation: it is born within the reform that transposes Directive (EU) 2023/2225 on consumer credit agreements in Spain, given first-round approval by the Council of Ministers on January 7, 2026 and submitted to public consultation until January 30, 2026.
The reform does two things at once. On the one hand, it makes granting consumer credit a reserved activity for entities registered and supervised by the Bank of Spain. On the other, and precisely because that reservation would shut out solvent operators that cannot take on the prudential regime of a credit institution, it creates proportionate license types: the EFCAL and the authorized high-cost lender.
Its relationship with Law 5/2015
Financial credit establishments are governed by Law 5/2015 of April 27 on promoting business financing, which set their legal regime after they ceased to be credit institutions in the strict sense. The EFCAL would be added to that framework as a simplified-regime variant: the same supervisor and the same authorization procedure, but without the prudential requirements of an ordinary EFC and with a narrower scope of activity.
What falls outside the EFCAL
An EFCAL will not be able to operate as a payment institution or as an electronic money institution. This is a decisive boundary for consumer finance projects with an associated account, card or wallet: that component requires its own license or an agreement with an authorized third party. Nor will it be able to carry out the other reserved activities in Article 6 of Law 5/2015.
Authorization before the Bank of Spain
The authorization application for a supervised entity always has the same backbone: corporate and shareholding structure, good repute and suitability of directors and managers, program of operations, internal organization and an anti-money laundering system. Our experience with EFC licenses, payment institutions and electronic money institutions carries over directly to this entity type.
A word of caution about the figures in circulation
This entity type is so new that much of what is published about it comes from second-hand summaries. The EFCAL’s minimum capital is not confirmed by any official source, and there are signs that the most widely cited figure corresponds to another entity type in the same package. We prefer to point this out rather than carry forward a figure that would later have to be corrected.
Sources
- Press release on the new consumer credit regulation — Ministry of Economy, Trade and Business
- Draft Consumer Credit Agreements Bill — public consultation — Ministry of Economy, Trade and Business
- Council of Ministers summary of January 7, 2026 — La Moncloa
- Law 5/2015 of April 27 on promoting business financing — BOE
- Law 5/2019 of March 15 regulating real estate credit agreements — BOE
- Planned new regulation of consumer credit — Bank of Spain · Bank Customer Portal