Countries › Peru › Guide › 10. Capital markets and finance › Interest rates, usury and loan terms in Peru: central bank caps on consumer and small business credit, the Civil Code maximum rate, default interest, capitalization and fees
Interest rates, usury and loan terms in Peru: central bank caps on consumer and small business credit, the Civil Code maximum rate, default interest, capitalization and fees
Last verified: 2026-10-28 · Status: Stable
Since Ley 31143 of March 2021, Peruvian banks set interest freely but within maximum rates the Banco Central de Reserva del Perú (BCRP) may fix every six months, and those caps apply only to consumer loans, low amount consumer loans of up to 2 UIT (S/ 11,000 in 2026) and loans to small and micro businesses. Rates above the cap count as usury under art. 214 of the Penal Code, the SBS supervises and reports breaches, and banks may not capitalize interest or charge penalties or fees for late payment; default interest equals the rate the BCRP fixes for operations outside the financial system. Outside banking, the Civil Code lets the BCRP fix the maximum conventional rate, any excess is refundable or applied to principal at the debtor's choice, and compound interest can only be agreed in writing after at least a year of arrears, except in commercial and bank accounts.
USD figures use S/ 3.452 per US dollar, the banking system selling rate published by the Superintendencia de Banca, Seguros y AFP for 27 October 2026 as shown in the Banco Central de Reserva del Perú statistics series PD04640PD. Amounts the law sets in soles, UIT or dollars are quoted as written; the 2026 UIT is S/ 5,500 under Decreto Supremo Nº 301-2025-EF. Conversions are for orientation only.
Key facts
| Interest rate caps | BCRP semiannual maximum rates for consumer, low amount consumer and small and micro business loans; other rates free textLey 31143; DL 26123 art. 52, as of 2021-03-18 · in force |
|---|---|
| Cap revision frequency | Semiannual textDL 26123 art. 52, as of 2021-03-18 · in force |
| Low amount consumer credit threshold | 11000 PENLey 26702 art. 221; DS 301-2025-EF, as of 2026-01-01 · in force |
| Charging above the cap is a crime | Yes, Penal Code art. 214 textDL 26123 art. 52 as amended by Ley 31143, as of 2021-03-18 · in force |
| Late payment fees allowed for financial firms | No, only default interest at BCRP rate textLey 28587 art. 6, as of 2021-03-18 · in force |
| Compound interest agreed at signing | Only in commercial, bank or similar accounts textCódigo Civil art. 1249, as of 1984-07-25 · in force |
| Deadline to deliver release documents after repayment | 7 business daysLey 31143 Third Complementary Final Provision, as of 2021-03-18 · in force |
| UIT 2026 | 5500 PENDS 301-2025-EF, as of 2026-01-01 · in force |
The rule
1. Financial firms may set interest rates freely, within the limit fixed by the BCRP under art. 52 of its organic law. The BCRP fosters rates set by free competition within the maximum rates it fixes, and may fix maximum and minimum rates every six months; this power cannot be delegated. The maximum lending rates apply exclusively to the credits in art. 221 numeral 3 literal c) of Ley 26702: consumer credit, low amount consumer credit and credit to small and micro businesses.
Cost to do it: No cost to comply; pricing models must test each consumer and small business product against the current BCRP cap.
Example: A Lima microfinance lender pricing a S/ 20,000 small business loan must keep the rate at or below the BCRP maximum for that segment. / For a US$5,000 consumer loan in soles (about S/ 17,260), the cap applies; for a US$5 million corporate loan, rates are free.Ley Nº 31143, Ley que protege de la usura a los consumidores de los servicios financieros (El Peruano 18 March 2021), art. 2 and art. 3, amending Decreto Ley Nº 26123 art. 52 and Ley Nº 26702 art. 9, Ley 31143 art. 2 and 3; Decreto Ley 26123 art. 52; Ley 26702 art. 9, 2021-03-18 official text · verified 2026-10-28 · changed: Ley 31143 (18 March 2021) introduced semiannual BCRP caps for consumer, low amount consumer and small business credit and linked excess rates to the usury crime.
Cost to do it: No cost to comply; pricing models must test each consumer and small business product against the current BCRP cap.
Example: A Lima microfinance lender pricing a S/ 20,000 small business loan must keep the rate at or below the BCRP maximum for that segment. / For a US$5,000 consumer loan in soles (about S/ 17,260), the cap applies; for a US$5 million corporate loan, rates are free.Ley Nº 31143, Ley que protege de la usura a los consumidores de los servicios financieros (El Peruano 18 March 2021), art. 2 and art. 3, amending Decreto Ley Nº 26123 art. 52 and Ley Nº 26702 art. 9, Ley 31143 art. 2 and 3; Decreto Ley 26123 art. 52; Ley 26702 art. 9, 2021-03-18 official text · verified 2026-10-28 · changed: Ley 31143 (18 March 2021) introduced semiannual BCRP caps for consumer, low amount consumer and small business credit and linked excess rates to the usury crime.
2. Low amount consumer credit is credit of 2 UIT or less. With the 2026 UIT at S/ 5,500, that threshold is S/ 11,000.
Cost to do it: Threshold S/ 11,000 (US$3,187) in 2026.
Example: A S/ 9,000 cash loan to a household is low amount consumer credit; a S/ 15,000 car loan is ordinary consumer credit, both capped. / Low amount consumer credit tops out at about US$3,187 in 2026.Ley Nº 26702, art. 221 numeral 3 literal c) as amended by Ley Nº 31143 art. 3; Decreto Supremo Nº 301-2025-EF (UIT 2026), Ley 26702 art. 221 numeral 3 c), 2021-03-18 official text · verified 2026-10-28
Cost to do it: Threshold S/ 11,000 (US$3,187) in 2026.
Example: A S/ 9,000 cash loan to a household is low amount consumer credit; a S/ 15,000 car loan is ordinary consumer credit, both capped. / Low amount consumer credit tops out at about US$3,187 in 2026.Ley Nº 26702, art. 221 numeral 3 literal c) as amended by Ley Nº 31143 art. 3; Decreto Supremo Nº 301-2025-EF (UIT 2026), Ley 26702 art. 221 numeral 3 c), 2021-03-18 official text · verified 2026-10-28
3. Lending rates charged above the BCRP maximum are deemed usury and treated as a crime under art. 214 of the Penal Code. The SBS supervises compliance with the caps and sanctions and reports to the Public Ministry financial firms that charge rates above them.
Cost to do it: Exposure is criminal and administrative; no compliance fee.
Example: A finance company that charges a consumer client 10 points above the cap faces SBS sanction and a criminal complaint. / Foreign fintech lenders funding Peruvian consumers through a local licensed partner should audit the partner's pricing against the cap.Ley Nº 31143 art. 2 (Decreto Ley Nº 26123 art. 52) and art. 3 (Ley Nº 26702 art. 349 numeral 20 and art. 358), Decreto Ley 26123 art. 52; Ley 26702 art. 349 and 358, 2021-03-18 official text · verified 2026-10-28
Cost to do it: Exposure is criminal and administrative; no compliance fee.
Example: A finance company that charges a consumer client 10 points above the cap faces SBS sanction and a criminal complaint. / Foreign fintech lenders funding Peruvian consumers through a local licensed partner should audit the partner's pricing against the cap.Ley Nº 31143 art. 2 (Decreto Ley Nº 26123 art. 52) and art. 3 (Ley Nº 26702 art. 349 numeral 20 and art. 358), Decreto Ley 26123 art. 52; Ley 26702 art. 349 and 358, 2021-03-18 official text · verified 2026-10-28
4. Default interest compensates late payment and accrues from the date the debtor is in default, on top of the agreed compensatory interest. Financial firms may not capitalize interest nor charge any penalty, fee or expense for non payment or late payment, and their default rates are the ones the BCRP sets for operations outside the financial system. Fees and expenses must correspond to an additional service actually provided, justified by a real cost shown in a technical report filed with the SBS, and contracts, summary sheets, fees and charges must be approved by SBS resolution and published.
Cost to do it: No late fees may be charged; default interest is limited to the BCRP rate for non financial operations.
Example: A borrower 30 days late on a S/ 11,000 loan owes the agreed compensatory interest plus default interest at the BCRP rate, but no late fee and no interest on interest. / On the same loan (about US$3,187), a flat US$15 late charge would breach art. 6.Ley Nº 28587, art. 6 and art. 11 as amended by Ley Nº 31143 art. 1 (18 March 2021), Ley 28587 art. 6 and art. 11, 2021-03-18 official text · verified 2026-10-28
Cost to do it: No late fees may be charged; default interest is limited to the BCRP rate for non financial operations.
Example: A borrower 30 days late on a S/ 11,000 loan owes the agreed compensatory interest plus default interest at the BCRP rate, but no late fee and no interest on interest. / On the same loan (about US$3,187), a flat US$15 late charge would breach art. 6.Ley Nº 28587, art. 6 and art. 11 as amended by Ley Nº 31143 art. 1 (18 March 2021), Ley 28587 art. 6 and art. 11, 2021-03-18 official text · verified 2026-10-28
5. Outside the specific financial regime, the Civil Code governs interest: interest is compensatory when it is the price for the use of money and moratory when it compensates delay. The BCRP fixes the maximum rate of conventional compensatory or moratory interest and the legal interest rate; any excess over the maximum gives rise to refund or to imputation to principal, at the debtor's option. If interest is due without an agreed rate the debtor pays legal interest, and if no default interest was agreed the debtor owes only the agreed compensatory interest or, failing that, legal interest. Ley 31143 makes the first paragraph of art. 1243 and Penal Code art. 214 also applicable to financial intermediation.
Cost to do it: Excess interest paid must be refunded or credited to principal.
Example: A supplier that charged a customer interest above the BCRP maximum on a S/ 100,000 trade credit must refund the excess or credit it to principal if the customer so chooses. / On a US$29,000 intercompany credit to a Peruvian company (about S/ 100,000), check the BCRP maximum rate before agreeing default interest.Código Civil, Decreto Legislativo Nº 295 (official edition of the Ministerio de Justicia y Derechos Humanos); Ley Nº 31143 art. 1 and 3, Código Civil art. 1242 to 1246, 1984-07-25 official text · verified 2026-10-28
Cost to do it: Excess interest paid must be refunded or credited to principal.
Example: A supplier that charged a customer interest above the BCRP maximum on a S/ 100,000 trade credit must refund the excess or credit it to principal if the customer so chooses. / On a US$29,000 intercompany credit to a Peruvian company (about S/ 100,000), check the BCRP maximum rate before agreeing default interest.Código Civil, Decreto Legislativo Nº 295 (official edition of the Ministerio de Justicia y Derechos Humanos); Ley Nº 31143 art. 1 and 3, Código Civil art. 1242 to 1246, 1984-07-25 official text · verified 2026-10-28
6. Capitalization of interest may not be agreed when the obligation is created, except in commercial, bank or similar accounts. An agreement to capitalize is valid only if made in writing after the obligation arose and after at least one year of arrears in paying interest.
Cost to do it: No cost; drafting point for loan documents.
Example: A S/ 500,000 loan between two Peruvian companies cannot provide for monthly compounding from signing unless run through a current account. / For a US$145,000 loan, the compound interest clause should be replaced by simple interest or a current account mechanism.Código Civil, Decreto Legislativo Nº 295 (published 25 July 1984), Art. 1249 and art. 1250, 1984-07-25 official text · verified 2026-10-28
Cost to do it: No cost; drafting point for loan documents.
Example: A S/ 500,000 loan between two Peruvian companies cannot provide for monthly compounding from signing unless run through a current account. / For a US$145,000 loan, the compound interest clause should be replaced by simple interest or a current account mechanism.Código Civil, Decreto Legislativo Nº 295 (published 25 July 1984), Art. 1249 and art. 1250, 1984-07-25 official text · verified 2026-10-28
7. Banks must offer a credit life insurance option with refund or surrender and the client may buy that insurance from any insurer at no extra fee; once a loan is repaid, the bank must deliver, within 7 business days and automatically, the no debt certificate and the release of vehicle pledge or mortgage; interplaza fees on debit card cash withdrawals in another city are banned; and a credit card membership fee may only be charged if agreed.
Cost to do it: No fee may be charged for choosing an outside credit life insurer.
Example: A borrower who repays a S/ 300,000 mortgage on 1 June must receive the mortgage release documents by about 10 June, counting 7 business days. / For a mortgage of about US$86,906, delays beyond 7 business days in releasing the lien breach the law.Ley Nº 31143, Second to Fifth Complementary Final Provisions (18 March 2021), Second, Third, Fourth and Fifth Complementary Final Provisions, 2021-03-18 official text · verified 2026-10-28
Cost to do it: No fee may be charged for choosing an outside credit life insurer.
Example: A borrower who repays a S/ 300,000 mortgage on 1 June must receive the mortgage release documents by about 10 June, counting 7 business days. / For a mortgage of about US$86,906, delays beyond 7 business days in releasing the lien breach the law.Ley Nº 31143, Second to Fifth Complementary Final Provisions (18 March 2021), Second, Third, Fourth and Fifth Complementary Final Provisions, 2021-03-18 official text · verified 2026-10-28
| Loan type | BCRP maximum applies | Source |
|---|---|---|
| Consumer credit | Yes | Ley 26702 art. 221 numeral 3 c); DL 26123 art. 52 |
| Low amount consumer credit up to 2 UIT (S/ 11,000 in 2026) | Yes | Same |
| Small and micro business credit | Yes | Same |
| Corporate, medium business, mortgage and other credit by financial firms | No, free rates | Ley 26702 art. 9 |
| Credit between non financial parties | Civil Code maximum conventional rate fixed by the BCRP | Código Civil art. 1243 |
Which Peruvian loans are rate capped
Worked example
- Low amount consumer loan of S/ 11,000 (US$3,187): the rate must not exceed the BCRP cap in force for that segment; if the borrower is late, the lender may add only default interest at the BCRP rate for non financial operations, with no late fee and no capitalization.
- A corporate revolving facility to a large company is outside the caps: pricing, fees and default interest follow the contract, subject to SBS rules on disclosure.
Step by step
- Classify each product: consumer, low amount consumer (up to S/ 11,000 in 2026), small or micro business, or other.
- Check the BCRP maximum rates in force for the semester and build them into pricing engines.
- Remove late fees and compounding from consumer and small business forms; keep default interest at the BCRP rate.
- File fee schedules and contracts with the SBS for approval and publish them on the website.
- Set up automatic release of guarantees within 7 business days of full repayment.
Common traps
- The BCRP cap figures change every semester and the BCRP site could not be reached from this environment, so no cap figure is quoted here; confirm the current values directly with the BCRP before pricing.
- Non financial lenders are not free of limits: the Civil Code maximum conventional rate and the usury crime also reach them.
- Compound interest clauses copied from foreign templates are void at signing unless the credit runs through a commercial or bank account.
- Fees without a real, documented service are prohibited and SBS can sanction them as abusive clauses.
Sources
- Ley Nº 31143 consolidated text (Congreso de la República)
- Código Civil, official edition of the Ministerio de Justicia y Derechos Humanos (gob.pe)
- Decreto Supremo Nº 301-2025-EF, UIT 2026 (Ministerio de Economía y Finanzas, gob.pe)
- Ley Nº 26702 text with amendment notes (Congreso de la República library)
Related pages
- finance/banks-and-foreign-bank-branches
- finance/financial-consumer-protection-and-credit-bureaus
- fx/foreign-loans
- start/uit-minimum-wage-and-exchange-rate
- finance/capital-markets-banking-and-credit
- /country/peru/
- /calendar/
- Live dashboard
Related: Peru country profile · live dashboard · central bank and release calendar · our posts on X
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