BSP Circular No. 1133 imposes interest-rate ceilings on lending companies and online lending platforms

Summary

BSP issued Circular No. 1133, Series of 2021, prescribing ceiling rates on interest and fees charged by Lending Companies, Financing Companies, and their Online Lending Platforms for covered loans. The circular sets a nominal interest rate ceiling of 6% per month, an effective interest rate ceiling of 15% per month, and a total cost cap of 100% of the amount borrowed. The ceilings apply to unsecured general-purpose loans not exceeding the threshold amount with tenors up to four months. The Securities and Exchange Commission later issued SEC Memorandum Circular No. 3, Series of 2022, to implement the ceilings.