Regulatory Alerts2022-03-01
SEC Memorandum Circular No. 03 s. 2022 Implementing BSP Circular No. 1133 on Interest Rate Ceilings for Lending Companies
The Securities and Exchange Commission issued this circular to implement Bangko Sentral ng Pilipinas Circular No. 1133 by imposing strict ceilings on interest rates and fees for unsecured loans of up to P10,000 with tenors of four months or less. The regulation mandates a nominal interest rate cap of 6 percent per month, an effective interest rate ceiling of 15 percent per month, and a total cost cap of 100 percent of the borrowed amount for lending and financing companies. Additionally, covered entities must submit a compliant Business Plan by May 2022 and an annual Impact Evaluation Report, facing administrative sanctions including fines and license revocation for non-compliance.
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