Secured loans are one of the most flexible and accessible ways for property owners to obtain financing in Spain. Whether you’re an expat, a resident, or a non-resident with assets in the country, a secured loan allows you to borrow money by using your property as collateral. Unlike traditional bank loans, these types of financing don’t rely heavily on income or credit history, making them a smart option for many.

But what are the minimum requirements to apply for a secured loan in Spain? In this guide, we’ll break down the essential criteria, who qualifies, and how you can make the most of your property to access the funding you need.

Why Choose a Secured Loan in Spain?

A secured loan allows you to unlock the equity in your property without selling it. It gives you access to capital that can be used for a wide variety of purposes: renovations, business investments, debt consolidation, or even helping a family member with a home purchase.

For many expats and non-residents, traditional Spanish banks make it difficult to borrow due to tight lending criteria, especially after the 2019 mortgage law reform. Secured loans offer a more flexible path, with faster approvals and less emphasis on monthly income requirements.

Minimum Requirements for Secured Loans in Spain

To apply for a secured loan in Spain, there are two fundamental requirements:

1. You Must Own a Property in Spain

This is non-negotiable. Secured loans are based on the value of your property, which will serve as collateral. You must be able to prove legal ownership of a residential or commercial property located in Spain. This applies whether you are a Spanish resident, an EU national, or a non-EU expat.

The property must have clear title, no unresolved legal issues, and be free of excessive debts. If there is an existing mortgage, lenders will assess how much equity remains and how it affects the loan-to-value (LTV) ratio.

2. The Minimum Loan Amount Is €20,000

Most lenders in Spain will not process secured loans for amounts below 20,000 euros. This threshold ensures that the administrative costs and risk to the lender are justified by the size of the loan. Smaller loans are typically handled through other types of financing, such as unsecured personal loans.

In general, secured loans range between €20,000 and several hundred thousand euros, depending on the property value and how much equity you have available.

Additional Requirements May Include:

• Valid passport or NIE (Foreigner Identification Number)
• Property deed and updated nota simple from the Spanish Land Registry
• Utility bills or other proof of residence
• Basic financial documents (if requested by the lender)

Who Can Apply for a Secured Loan in Spain?

The beauty of secured loans is that they’re accessible to a wide variety of applicants. Unlike bank loans, which require strong, regular income, secured loans are based on asset value.

You may qualify if:

• You’re a Spanish resident who owns a home
• You’re an expat or foreign investor with a property in Spain
• You’re a retiree or self-employed individual who doesn’t meet bank income thresholds
• You’re a non-resident with legal property ownership in Spain

Secured loans are ideal for those who may not have a typical financial profile but have real estate assets they can leverage.

Why Lenders Require a Minimum Loan Amount

You might wonder why most lenders won’t offer secured loans for less than €20,000. The reason is simple: processing these types of loans involves legal work, valuations, and administrative handling that must be worthwhile for the lender.

In addition, secured loans are designed for more substantial financial needs. Common reasons people borrow over €20,000 include:

• Major home renovations
• Starting or expanding a business
• Purchasing a second property
• Consolidating multiple debts into one loan
• Making international investments

Using Your Property as Collateral: What You Need to Know

When you apply for a secured loan, your property is used as collateral. That means the lender has a legal claim against your property in case you fail to repay the loan. However, this doesn’t mean you’ll automatically lose your home.

As long as repayments are made according to the agreement, you maintain full ownership and use of the property. It’s essential to understand the terms of your loan, including interest rate, duration, and repayment structure.

The property will be valued by the lender (or an independent appraiser), and the final loan offer will be based on a percentage of that value—typically 40% to 60%, depending on the lender and your profile.

Best Uses for Secured Loans in Spain

Secured loans offer versatility that few other financial products can match. Common uses include:

• Home improvements – Modernizing or expanding your current property
• Debt consolidation – Replacing high-interest debts with a lower-rate secured loan
• Business funding – Using your property to raise capital for a new or existing business
• Bridge financing – Accessing funds while waiting to complete a property sale
• Helping family – Assisting children or relatives with property purchases or education costs

Because secured loans are backed by real assets, lenders offer more generous terms and are more open to a variety of purposes than they are with traditional unsecured loans.

Conclusion: Are You Eligible for a Secured Loan?

If you own a property in Spain and are looking to borrow €20,000 or more, you already meet the two most important criteria for applying for a secured loan. These loans offer flexibility, speed, and fewer restrictions than traditional banking options—especially for expats and non-residents.

If you don’t qualify for a bank loan due to income, employment status, or residency issues, a secured loan may be your best path forward.

At Kredit Spain, we specialize in helping clients access competitive secured loan solutions tailored to their unique needs. If you own property in Spain and need fast, flexible financing, we’re here to guide you every step of the way.

Ready to unlock the value of your property? Contact us to see if you qualify for a secured loan in Spain.