How can I avoid an Interest Clause?


The Interest Clause or Soil Clause is in many loans subscribed to variable interest rate.

The above mentioned clause, even of being in many loans, slipped by for a long time, however, the Euribor minimal level have given it a great importance, being an authentic problem for people affected.

What’s it all about?

The limits to the minimal interest rate applicable to a loan or colloquial called soil clause are the fixation of a minimal rate to the applicable interest in a lending.

In such a way that a lending agreed to variable interest, will quit being variable when the interest rates places below this minimal limit to turn into a fixed minimal interest lending.

This way, in spite of having a variable interest rate lending according to Euribor plus differential, if the above mentioned interest rate places below this minimal or soil clause, this clause will turn applicable, losing our lending the nature of variable to turn into a fixed lending.

It means that the affected ones won’t get benefit from the descent of the Euribor, having to pay higher payments according to the fixed type, increasing the loan costs.
Let see an example: Variable Interest Rate Lending according to Euribor plus differential 0.75% and Soil Clause/Minimal Fixed Rate 3.5%

If the applicable interest rate with reference to Euribor plus differential is minor than 3.5%, then the applicable interest to the loan won’t be the variable but the Soil Clause 3,5%.

What Can I do?

If you are affected by the famous Soil Clause, being obliged to pay higher quotas than the agreed ones, don’t be patience anymore, you can require the bank the elimination of the clause and claiming your money back from all the quotas you paid because of the Soil Clause.

Global Services Advocacy already has Judgments in favour to people affected by the Soil Clause, being condemned the bank to eliminate the clause and to return the higher interest paied for its application.

Consult us in a free way and without commitment if your lending is affected by a soil clause.