The 33% rule is not a legal standard but a prudent convention used for decades by banks and European regulators. It protects borrower and lender alike.
The principle
The effort rate is the share of your net income absorbed by loan repayments. It is calculated as follows:
Effort rate = (Total instalments ÷ Net monthly income) × 100
An effort rate above 33% means one-third of your income goes to credit every month, before covering current expenses.
Why this exact limit
- Rent or housing repayment: around 30% of income for most households.
- Food, transport, energy: another 20–25%.
- Variable expenses and unforeseen events: 10–15%.
With 33% already going to credit, only 12–17% remains for savings and projects. Above, any surprise unbalances the budget.
Already above?
Two main levers:
- Extend the term of one or more loans to reduce instalments. You pay more interest over the total term but regain breathing space immediately.
- Consolidate several loans into one, at a fixed rate, over a chosen duration. Consolidation is particularly useful when three or more loans coexist.
Our approach
At CREDITO SOLIDARIO, we do not approve files beyond a 35% effort rate, except in documented exceptional cases. Not an administrative constraint — a conviction: a sustainable loan is one repaid without difficulty.