What is the maximum interest rate a credit card can charge in the Philippines?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
The current ceiling is 3% per month (36% per year) on a credit card's unpaid outstanding balance, set by BSP Circular No. 1165 (Series of 2023). The BSP reviews this ceiling every six (6) months and has retained it since — confirm the figure against the current BSP circular before relying on it. Credit-card installment plans are separately capped at a 1% per-month add-on rate, and a cash-advance processing fee may not exceed ₱200 per transaction.
Primary sources
Frequently asked
Is the cap 3% per month or 36% per year?
They describe the same ceiling: 3% per month equals 36% per year on the unpaid outstanding balance (BSP Circular 1165, 2023). Because the BSP reviews the ceiling every six months, always check the latest BSP circular for the figure in force today.
Does the cap cover cash advances and installments too?
The 3%/month ceiling is the finance charge on the unpaid balance. Installment purchases are capped separately at a 1% monthly add-on rate, and a cash advance carries a processing fee of up to ₱200 per transaction (BSP Circular 1165).
What if my bank charges more than the cap?
A finance charge above the BSP ceiling is not allowed. Ask the issuer in writing to correct it, and file with the BSP Consumer Assistance Mechanism under RA 11765 if they refuse — see /answer/how-do-i-file-a-complaint-against-my-credit-card-issuer.
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