Countries › Chile › Guide › 16. What is normal abroad but not here › Interest is capped by law

Interest is capped by law

Last verified: 2026-10-26 · Status: Changing

Abroad, commercial parties normally agree any interest rate; in Chile most credit operations are subject to a maximum conventional rate tied to the bank average published each month. The cap is the greater of 1.5 times the current rate for the segment and that rate plus 2 points; any excess is cut to the current rate, and interest cannot be compounded more often than every 30 days. Loans from foreign or international banks, foreign currency loans for foreign trade and loans to banks are free of the cap.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial for 23 October 2026 (CVE 2891564). UF amounts use the SII value of CLP 41,221.08 for 26 October 2026 and UTM amounts the SII value of CLP 72,151 for October 2026. Conversions are for orientation only.

Key facts

Maximum conventional interest rate	Greater of 1.5 times the CMF current rate and the current rate plus 2 percentage points textLey Nº 18.010, art. 6 and art. 8, as of 2026-10-26 · in force
CMF current rate, non readjustable peso loans of 90 days or more above 5,000 UF	6.70 % a yearCMF Certificate Nº 10/2026, as of 2026-10-15 · in force
Maximum conventional rate, non readjustable peso loans of 90 days or more above 5,000 UF	10.05 % a yearCMF Certificate Nº 10/2026, as of 2026-10-15 · in force
Maximum conventional rate, foreign currency loans above 2,000 UF	8.37 % a yearCMF Certificate Nº 10/2026, as of 2026-10-15 · in force
Minimum compounding period	30 daysLey Nº 18.010, art. 9, as of 2026-10-26 · in force

The rule

1. The current interest rate is the weighted average of rates charged by banks in Chile, set by the Comisión para el Mercado Financiero (CMF) by segment (currency, readjustable or not, amount and term) and published on its website and in the Diario Oficial in the first half of each month. No interest may be agreed above the product of the capital and the greater of 1.5 times the current rate in force when the contract is made, and that current rate plus 2 percentage points a year, whether the rate is fixed or variable. This limit is the maximum conventional interest.
Cost to do it: No fee. Rates are checked against the CMF certificate in force on the signing date.
Example: From 15 October 2026 the current rate for non readjustable peso loans of 90 days or more above 5,000 UF is 6.70 percent and the maximum is 10.05 percent (1.5 times 6.70). A one year CLP 300,000,000 loan between two Chilean companies can carry at most 10.05 percent. / The loan is about US$304,081; maximum interest for one year about US$30,560.Ley Nº 18.010 on money credit operations, Art. 6, 1981-06-27 official text · verified 2026-10-26

2. Any interest clause above the maximum conventional rate is treated as not written, and interest is reduced to the current rate in force when the contract was made. Interest received in excess must be returned readjusted.
Cost to do it: The lender loses everything above the current rate, not just the excess over the cap.
Example: If the same CLP 300,000,000 loan were written at 12 percent, interest would fall to 6.70 percent: CLP 20,100,000 for the year instead of CLP 36,000,000, a loss of CLP 15,900,000 to the lender. / The lender's loss is about US$16,116.Ley Nº 18.010, Art. 8, 1981-06-27 official text · verified 2026-10-26

3. Interest on interest may be agreed, capitalised at each maturity or renewal, but never for periods under 30 days; interest capitalised in breach counts as interest for all purposes, including the cap. Interest clauses must be in writing to be enforceable, and money loans are not presumed free: absent agreement they earn the current rate. For the purposes of the law, months are 30 days and years 360 days.
Cost to do it: No fee.
Example: An intercompany loan agreement that compounds weekly breaches art. 9; the compounding counts as interest when testing the cap. An undocumented loan earns the current rate even without a clause. / Not a fee rule; the risk is that compounded amounts push the loan over the cap.Ley Nº 18.010, Art. 9, art. 11, art. 12 and art. 14, 1981-06-27 official text · verified 2026-10-26

4. There is no interest limit on loans agreed with foreign or international banks or financial institutions, on loans agreed or expressed in foreign currency for foreign trade operations, on Central Bank operations with financial institutions, or where the debtor is a bank or financial company.
Cost to do it: No fee; the exemption depends on who the lender is and the purpose of the loan.
Example: A loan to a Chilean SpA from a foreign bank is free of the cap; the same loan made by the foreign parent company (not a bank) is subject to it. / For a US dollar intercompany loan above 2,000 UF, the October 2026 current rate is 5.58 percent and the maximum 8.37 percent.Ley Nº 18.010, Art. 5, 1981-06-27 official text · verified 2026-10-26

5. For the period from 15 October 2026 until the day before the next publication, the CMF set current and maximum rates by segment, including: non readjustable peso loans under 90 days up to 5,000 UF, 31.82 and 47.73 percent; above 5,000 UF, 5.44 and 8.16 percent; non readjustable peso loans of 90 days or more between 200 and 5,000 UF, 20.02 and 30.03 percent; above 5,000 UF, 6.70 and 10.05 percent; UF readjustable loans of 1 year or more above 2,000 UF, 3.68 and 5.68 percent; foreign currency loans above 2,000 UF, 5.58 and 8.37 percent.
Cost to do it: Free to consult in the Diario Oficial.
Example: A UF loan of 10,000 UF for 3 years between related companies can carry at most 5.68 percent a year compounded. / 10,000 UF is about CLP 412,210,800 or US$417,818.CMF Certificate Nº 10/2026, Diario Oficial 15 October 2026 (CVE 2885690), Issued under Ley Nº 18.010 art. 6 and art. 6 bis, 2026-10-15 official text · verified 2026-10-26

Segment	Current rate	Maximum rate
Non readjustable pesos, under 90 days, up to 5,000 UF	31.82	47.73
Non readjustable pesos, under 90 days, above 5,000 UF	5.44	8.16
Non readjustable pesos, 90 days or more, up to 50 UF	32.82	41.02
Non readjustable pesos, 90 days or more, 50 to 200 UF	29.56	34.02
Non readjustable pesos, 90 days or more, 200 to 5,000 UF	20.02	30.03
Non readjustable pesos, 90 days or more, above 5,000 UF	6.70	10.05
Readjustable (UF), under 1 year	3.51	5.51
Readjustable (UF), 1 year or more, up to 2,000 UF	4.32	6.48
Readjustable (UF), 1 year or more, above 2,000 UF	3.68	5.68
Foreign currency, up to 2,000 UF	9.90	14.85
Foreign currency, above 2,000 UF	5.58	8.37

CMF current and maximum conventional rates in force from 15 October 2026 (Certificate Nº 10/2026, percent a year).

Worked example

Parent lends its Chilean SpA CLP 300,000,000 for 2 years at a fixed rate: cap 10.05 percent if signed between 15 October and the next certificate.
If signed at 11 percent, the clause is treated as not written and interest drops to 6.70 percent for the whole life of the loan.
Had the loan come from a foreign bank, no cap would apply.

Step by step

Identify the segment: currency, readjustable or not, amount in UF and term.
Read the CMF certificate in force on the signing date in the Diario Oficial.
Set the rate at or below the maximum and document it in writing.
Compound no more often than every 30 days.
Recheck on renewals or amendments, which are tested against the certificate in force at that time.
Align intercompany rates also with transfer pricing rules.

Common traps

Breaching the cap does not cut interest to the cap but to the lower current rate.
A foreign parent company is not a foreign bank: its loans are within the cap.
Fees and other sums received above capital count as interest in non readjustable loans.
Late interest cannot be applied together with another interest on the same amount, and only on the overdue part.

Sources

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