SEC Memorandum Circular No. 3 implements BSP Circular 1133 interest-rate caps for lending and financing companies

Summary

The Securities and Exchange Commission issued Memorandum Circular No. 3, Series of 2022, implementing BSP Circular No. 1133 ceilings on interest rates and other fees charged by lending companies, financing companies and their online lending platforms. The Circular took effect 3 March 2022 and applies to unsecured general-purpose loans up to ₱10,000.00 and tenors up to four months entered into, restructured, or renewed beginning that date. It prescribes a 6% per month nominal interest rate ceiling, a 15% per month effective interest rate ceiling, a 5% per month penalty cap on outstanding scheduled amounts, and a 100% total cost cap on the amount borrowed.