Countries › Colombia › Guide › 10. Capital markets and finance › Interest rates, usury and loan terms in Colombia: the monthly SFC certified rate, the usury ceiling by credit type, the double refund penalty, compound interest, prepayment rights and the end of the DTF

Interest rates, usury and loan terms in Colombia: the monthly SFC certified rate, the usury ceiling by credit type, the double refund penalty, compound interest, prepayment rights and the end of the DTF

Last verified: 2026-10-27 · Status: Changing

The SFC certifies each month a current banking rate for each credit type; charging more than 1.5 times that rate is the crime of usury, and in commercial dealings a creditor that exceeds the legal limits loses all the interest and must refund the excess plus an equal amount. For 1 to 31 October 2026 the certified rate is 19.06 percent effective annual for ordinary and consumer credit (usury ceiling 28.59 percent) and 27.50 percent for large productive credit (ceiling 41.25 percent). Unpaid interest only earns interest after a lawsuit or a later agreement and only if at least a year overdue, peso loans up to 880 monthly minimum wages may be prepaid without penalty, and from 1 January 2027 every legal reference to the DTF rate becomes a reference to the three month IBR.

USD figures use the TRM of COP 3,157.94 per US dollar valid on 27 October 2026, certified by the Superintendencia Financiera and published on the national open data portal (datos.gov.co). Amounts in UVT use the 2026 UVT of COP 52,374 (DIAN Resolución 000238 de 2025) and amounts in minimum wages use the 2026 monthly minimum wage of COP 1,750,905 (Decreto 1469 de 2025). Conversions are for orientation only.

Key facts

Certified current banking rate, ordinary and consumer credit, 1 to 31 October 2026	19.06 % effective annualSFC Resolución 1472 de 2026, as of 2026-10-01 · in force
Usury ceiling, ordinary and consumer credit, 1 to 31 October 2026	28.59 % effective annualSFC Resolución 1472 de 2026; Código Penal art. 305, as of 2026-10-01 · in force
Certified current rate, large productive credit, October 2026	27.5 % effective annualSFC certification for October 2026, as of 2026-10-01 · in force
Penalty for charging interest above the limit	Loss of excess interest plus an equal amount textLey 45 de 1990 art. 72, as of 2026-10-27 · in force
Penalty free prepayment right applies to peso credits up to	880 monthly minimum wagesLey 1555 de 2012 art. 1, as of 2026-10-27 · in force
Unpaid interest may only bear interest if overdue at least	12 monthsCódigo de Comercio art. 886, as of 2026-10-27 · in force
DTF rate published until	2026-12-31 dateLey 2294 de 2023 art. 314, as of 2026-10-27 · in force

The rule

1. The SFC certifies the current banking rate (interés bancario corriente) monthly by credit type. For 1 to 31 October 2026 (Resolución 1472 de 2026) the certified rates are: ordinary and consumer credit 19.06 percent effective annual; low amount consumer credit 44.44 percent; large productive credit 27.50 percent; rural productive credit 20.63 percent; urban productive credit 38.26 percent; popular rural productive credit 43.63 percent; and popular urban productive credit 58.41 percent. The ordinary and consumer rate fell 43 basis points from September (19.49 percent).
Cost to do it: Free public certification; it changes every month, so each period of interest must be checked against the certificate in force when it accrued.SFC Resolución 1472 de 2026 (certification of the current banking rate), Certification for 1 to 31 October 2026, 2026-09-30 official text · verified 2026-10-27

2. Receiving or charging, directly or indirectly, for a loan or for a sale of goods or services on credit, any profit or advantage that exceeds by more than half the current banking rate certified for the period, in whatever form the deal is recorded or disguised, is the crime of usury, punished with 32 to 90 months in prison and a fine of 66.66 to 300 monthly minimum wages; buying a cheque, salary or social benefit on those terms carries 48 to 126 months and 133.33 to 600 minimum wages; and penalties rise by half to three quarters when the advantage triples the current rate.
Cost to do it: Fine range for usury in 2026: COP 116,715,327 to COP 525,271,500 (about US$36,959 to US$166,334).Código Penal (Ley 599 de 2000) art. 305, penalties increased by Ley 890 de 2004 art. 14 and inciso added by Ley 1142 de 2007 art. 34, Art. 305, 2000-07-24 official text · verified 2026-10-27

3. In commercial dealings, where interest is owed but no rate was agreed, it is the current banking rate; where no default rate was agreed, it is 1.5 times the current banking rate; and where either is exceeded the creditor loses all interest, without prejudice to Ley 45 de 1990 art. 72. Under that article, when interest above the legal or monetary authority limits is charged, the creditor loses all interest charged in excess, remunerative, default or both, increased by an equal amount, and the debtor may demand immediate refund of what it paid plus an amount equal to the excess as a penalty.
Example: A lender that collected COP 30 million of interest of which COP 4 million exceeded the ceiling must refund the COP 4 million plus a further COP 4 million. / On the same facts, about US$1,267 of excess interest costs the lender about US$2,533 back to the borrower.Código de Comercio art. 884 (as amended by Ley 510 de 1999 art. 111); Ley 45 de 1990 art. 72, Código de Comercio art. 884; Ley 45 de 1990 art. 72, 1990-12-18 official text · verified 2026-10-27

4. Unpaid interest does not itself bear interest except from the date of the creditor's lawsuit or under an agreement made after the due date, and in both cases only for interest owed for at least one year.
Example: A clause in the original loan capitalizing unpaid interest every month is not effective under art. 886; after a year of arrears the parties may agree to capitalize it.Código de Comercio (Decreto 410 de 1971), Art. 886, 1971-03-27 official text · verified 2026-10-27

5. Financial consumers may prepay any peso credit in full or in part, without penalty or compensation for lost profit, with interest settled to the payment date, and choose whether a partial prepayment reduces the term or the instalment. Lenders must inform borrowers of this right before granting credit. The right does not apply to credits whose balance exceeds 880 monthly minimum wages (for which prepayment follows the contract), applies up to that total with one lender, does not apply to mortgage loans, and covers credits granted after the law came into force.
Cost to do it: The 880 minimum wage threshold is COP 1,540,796,400 (about US$487,912) in 2026.
Example: A small company with a COP 900 million working capital loan (under the 2026 threshold) may prepay it at any time without a fee. / Above roughly US$487,912 of balance, prepayment fees and notice periods depend on the contract.Ley 1555 de 2012 art. 1, adding lit. g to Ley 1328 de 2009 art. 5, Art. 1, 2012-07-09 official text · verified 2026-10-27

6. Banco de la República will calculate and publish the DTF rate until 31 December 2026. From 1 January 2027, references to the DTF in laws, decrees and general or particular administrative acts that apply on or after that date are deemed made to the three month IBR expressed as an effective annual rate. Parties to financial instruments and contracts that use the DTF may amend them to agree a replacement index.Ley 2294 de 2023 (National Development Plan 2022 to 2026), Art. 314, 2023-05-19 official text · verified 2026-10-27 · changed: DTF publication ends on 31 December 2026; statutory references switch to the three month IBR on 1 January 2027 (Ley 2294 de 2023 art. 314).

Credit type	Current banking rate	Usury ceiling
Ordinary and consumer	19.06%	28.59%
Low amount consumer	44.44%	66.66%
Large productive	27.50%	41.25%
Rural productive	20.63%	30.95%
Urban productive	38.26%	57.39%
Popular rural productive	43.63%	65.45%
Popular urban productive	58.41%	87.62%

SFC certified current banking rates and usury ceilings (1.5 times), 1 to 31 October 2026, effective annual. Ceilings for the ordinary and low amount consumer lines are as published by the SFC; the others are computed as 1.5 times the certified rate.

Worked example

A US lender lends COP 3,157,940,000 (US$1,000,000) to a Colombian company in pesos in October 2026 as ordinary credit. The all in rate, counting fees that the law treats as interest, cannot exceed 28.59 percent effective annual for interest accruing in October; if the certificate falls later, a fixed rate that ends above the new ceiling becomes unlawful for those months (Código Penal art. 305; Código de Comercio art. 884).
If the loan agreement sets a 30 percent default rate and the borrower pays it for three months, the borrower can claim back the interest above the ceiling plus an equal amount (Ley 45 de 1990 art. 72).
Loans priced at DTF plus a margin should be amended before 1 January 2027 to name the replacement; otherwise statutory references switch to the three month IBR (Ley 2294 de 2023 art. 314).

Step by step

1. Classify the loan by SFC credit type; the ceiling differs by type.
2. Each month, compare the effective annual cost, including fees counted as interest, with 1.5 times the certified rate for that month.
3. Cap default interest contractually at the maximum legal rate rather than at a fixed figure.
4. Do not capitalize unpaid interest in the original contract; agree it after a year of arrears or claim it in court (Código de Comercio art. 886).
5. For consumer and small business borrowers, disclose the prepayment right before granting credit (Ley 1555 de 2012).
6. Review all DTF linked contracts before 31 December 2026.

Common traps

Fixed default rates that later exceed a falling ceiling: the creditor loses the interest and must refund double the excess (Código de Comercio art. 884; Ley 45 de 1990 art. 72).
Using the ordinary credit ceiling for a large productive loan or vice versa: the SFC certifies separate rates per credit type.
Charging a prepayment fee on a peso loan under 880 minimum wages (Ley 1555 de 2012).
Assuming DTF clauses continue after 2026: publication ends on 31 December 2026 (Ley 2294 de 2023 art. 314).

Sources

← Setting up a bank in Colombia: SFC licensing, foreign bank branches, assigned capital, solvency and leverage ratios and electronic payment companies (SEDPE)Secured lending and collateral in Colombia: movable security interests under Ley 1676 de 2013, the online registry, priority, self help enforcement, insolvency treatment and mortgages →