Rate of Interest for Loan or Forbearance of Any Money, Goods or Credits and Rate Allowed in Judgments
Central Bank Circular No. 416, issued on July 29, 1974, establishes the interest rate for loans and forbearance of money, goods, or credits at a maximum of 12% per annum, in accordance with the Usury Law (Act No. 2655). This rate applies in the absence of an express contract specifying a different interest rate. The Circular was enacted by the Monetary Board and took effect immediately.
Law Information
- Reference Number
- Central Bank Circular No. 416
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Loans
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
July 29, 1974
CENTRAL BANK CIRCULAR NO. 416
By virtue of the authority granted to it under Section 1 of Act No. 2655, as amended, otherwise known as the "Usury Law," the Monetary Board, in its Resolution No. 1622 dated July 29, 1974, has prescribed that the rate of interest for the loan or forbearance of any money, goods or credits and the rate allowed in judgments, in the absence of express contract as to such rate of interest, shall be twelve per cent (12%) per annum.
This Circular shall take effect immediately.
(SGD.) G. S. LICAROSGovernor
Cite This Law
Rate of Interest for Loan or Forbearance of Any Money, Goods or Credits and Rate Allowed in Judgments, Central Bank Circular No. 416, Jul 29, 1974 (Philippines)
Rate of Interest for Loan or Forbearance of Any Money, Goods or Credits and Rate Allowed in Judgments, Central Bank Circular No. 416 (Phil. 1974)
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- Amendment of Books I to IV of the Manual of Regulations for Banks and Other Financial IntermediariesCentral Bank Circular No. 905 • Dec 10, 1982 • Other Rules and Procedures
- The Usury LawAct No. 2655 • Feb 24, 1916 • Statutes
- An Act Establishing and Defining the Legal Rate of Interest, and Declaring the Effect of Usury upon Contracts and for Other Purposes, in the Moro Province, the Mountain Province and the Provinces of Agusan and Nueva VizcayaAct No. 2073 • Aug 19, 1911 • Statutes
- Amending Act No. 2655 As Amended (Usury Law)Presidential Decree No. 116 • Jan 29, 1973 • Presidential Issuances
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