Countries › Peru › Guide › 16. What is normal abroad but not here › Interest is capped by the central bank, and above it the excess is returned

Interest is capped by the central bank, and above it the excess is returned

Last verified: 2026-10-29 · Status: Changing

Abroad lenders and borrowers often agree any interest rate; in Peru the Banco Central de Reserva sets maximum compensatory and late interest rates for loans outside the financial system and, since 2021, for bank consumer and small business loans. From 1 May 2026 the cap is 114.13 percent a year in soles and 99.84 percent in foreign currency, reviewed every six months; any excess is refunded or applied to principal at the debtor's choice. Interest cannot be capitalised at the outset except in bank and commercial accounts, so compounding clauses in ordinary loans fail.

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, from the Banco Central de Reserva del Perú statistics series PD04640PD. UIT amounts use the 2026 UIT of S/ 5,500 set by Decreto Supremo Nº 301-2025-EF, as cited in SUNAT Resolución de Superintendencia Nº 000016-2026/SUNAT. Conversions are for orientation only.

Key facts

Maximum compensatory interest rate, soles (outside the financial system and bank consumer and small business loans), from 1 May 2026	114.13 % a yearCódigo Civil art. 1243; Ley 31143, as of 2026-10-29 · in force
Maximum compensatory interest rate, foreign currency, from 1 May 2026	99.84 % a yearCódigo Civil art. 1243; Ley 31143, as of 2026-10-29 · in force
Frequency of central bank cap updates	6 monthsDL 26123 art. 52 (Ley 31143 art. 2), as of 2026-10-29 · in force

The rule

1. The maximum rate of conventional compensatory or late interest is set by the Banco Central de Reserva del Perú. Any excess over the maximum rate gives rise to a refund or to its application to principal, at the debtor's choice. The legal interest rate is also set by the central bank.
Cost to do it: Excess interest is recoverable by the debtor.
Example: A private lender charging 130 percent a year on a S/ 100,000 one year loan, against a cap of 114.13 percent, must refund or credit S/ 15,870 of excess interest. / About US$4,597 on a loan of about US$28,969.Código Civil, Decreto Legislativo Nº 295 (25 July 1984), Art. 1243 and 1244, 1984-07-25 official text · verified 2026-10-29

2. The central bank sets maximum and minimum rates every six months. Maximum lending rates for financial system companies apply only to consumer, low amount consumer and small and micro business loans; rates above that limit are usury and a crime under art. 214 of the Penal Code. Financial companies set other rates freely within the limit.
Cost to do it: Consumer and small business loans cannot exceed the cap.
Example: A bank consumer loan in soles cannot carry more than 114.13 percent a year from 1 May 2026. / A dollar consumer loan cannot carry more than 99.84 percent a year.Ley Nº 31143, Ley que protege de la usura a los consumidores de los servicios financieros (El Peruano 18 March 2021), amending Decreto Ley Nº 26123 art. 52 and Ley Nº 26702 art. 9, Art. 2 and 3, 2021-03-18 official text · verified 2026-10-29 · changed: Ley Nº 31143 of 18 March 2021 gave the central bank the power to cap bank consumer and small business lending rates every six months.

3. The current maximum conventional compensatory rate, published by the central bank, is 114.13 percent a year in soles and 99.84 percent a year in foreign currency, both for operations between parties outside the financial system and for financial system consumer, low amount consumer and small and micro business loans, in force since 1 May 2026; the previous caps, from November 2025, were 113.16 and 95.40 percent.
Cost to do it: Cap on contractual interest.
Example: A S/ 10,000 consumer loan cannot cost more than S/ 11,413 of interest over one year at the cap. / Interest of about US$3,306 on about US$2,897.Banco Central de Reserva del Perú, maximum interest rate statistics series PD38032DD, PD38033DD, PD38590DD and PD38591DD under Código Civil art. 1243 and Ley Nº 31143, Series values from 1 May 2026, 2026-05-01 official text · verified 2026-10-29 · changed: The caps moved from 113.16 to 114.13 percent in soles and from 95.40 to 99.84 percent in foreign currency on 1 May 2026; the central bank resets them every six months.

4. Capitalisation of interest cannot be agreed when the obligation is contracted, except in commercial, bank or similar accounts. An agreement to capitalise interest is valid if made in writing after the obligation arose and after at least one year of late payment of interest.
Cost to do it: Compounding clauses in ordinary loans are unenforceable.
Example: A shareholder loan that compounds interest monthly from day one cannot enforce the compounding.Código Civil, Decreto Legislativo Nº 295, Art. 1249 and 1250, 1984-07-25 official text · verified 2026-10-29

Period	Soles	Foreign currency
Late October 2025	115.14%	96.89%
3 November 2025 to 30 April 2026	113.16%	95.40%
From 1 May 2026	114.13%	99.84%

Central bank maximum compensatory rates (annual, BCRP series)

Worked example

Corporate loans from banks and intercompany loans at market rates sit far below the cap, so for most investors the practical effect is on consumer lending, small business lending and private lending: a lender charging 130 percent on S/ 100,000 must give back S/ 15,870 (about US$4,597).

Step by step

Check the current central bank caps before pricing consumer, small business or private loans; they change every six months.
Draft loans without upfront capitalisation clauses unless they are bank or commercial current accounts.
Document late interest separately; it is also capped.
Route loans through banks: the Means of Payment rule applies to loans of any amount.

Common traps

The cap for operations outside the financial system also binds non bank lenders, including foreign lenders lending to Peruvian consumers.
Fees and charges disguised as interest can be recharacterised and counted against the cap.
The caps reset every six months, so a rate that was legal at signing can need review on renewal.

Sources

← Silence for 8 days means an invoice is acceptedEvery shop and website needs a complaints book, and dollar prices must also be shown in soles →

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