Peru raises interest rate cap on dollar loans to 103.14% — The Rio Times

The Central Reserve Bank of Peru has raised the maximum annual interest rate on consumer loans and loans to micro and small enterprises in US dollars from 99.84% to 103.14%. This is the first time that the statutory ceiling for such dollar-denominated loans has exceeded 100% per year.

The new limits will apply from November 1, 2026, to April 30, 2027. For loans in Peruvian soles, the cap was also raised, from 114.13% to 114.68% per year. The Rio Times reported the decision, citing Peruvian outlets Gestión and Infobae.

How the limits are set

The Central Reserve Bank's authority to set maximum rates is provided for by Law 31143, adopted in 2021 to combat usury. The regulator updates the limits every six months using a formula defined by Circular 0008-2021-BCRP.

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The next review of the limits is scheduled for May 1, 2027. It is to be based on average consumer loan rates during the period from October 2026 to March 2027. Compliance with the established caps is monitored by Peru's financial regulator, the Superintendency of Banking, Insurance and Pension Fund Administrators, which may impose sanctions on lenders for exceeding the limit.

Banks' position

Peru's banking association Asbanc advocates abolishing the restrictions, believing that they have not made loans cheaper. The organization stated that excluding a person from formal lending does not eliminate their need for financing.

Lawyer José Goiburu of the Cuatrecasas firm noted that raising the interest rate ceiling only slightly expands the ability to lend to higher-risk clients. According to him, the average number of new consumer-loan borrowers per month fell by about 11%, from around 46,000 in 2015–2019 to around 41,000.