Rate of Interest in the Absence of Stipulation
BSP Circular No. 799-13, issued on June 21, 2013, establishes that in the absence of a stipulated interest rate in loan agreements, the default interest rate will be six percent (6%) per annum. This amendment updates Section 2 of Circular No. 905, Series of 1982, and modifies relevant subsections in the Manuals for both Banks and Non-Bank Financial Institutions. The new rate applies to loans, forbearances, and judgments where no express interest rate is agreed upon. This regulation will take effect on July 1, 2013.
Law Information
- Reference Number
- BSP Circular No. 799-13
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Loans
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
June 21, 2013
BSP CIRCULAR NO. 799-13
| SUBJECT | : | Rate of Interest in the Absence of Stipulation |
The Monetary Board, in its Resolution No. 796 dated 16 May 2013, approved the following revisions governing the rate of interest in the absence of stipulation in loan contracts, thereby amending Section 2 of Circular No. 905, Series of 1982:
SECTION 1. 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 an express contract as to such rate of interest, shall be six percent (6%) per annum.
SECTION 2. In view of the above, Subsection X305.1 of the Manual of Regulations for Banks and Sections 4305Q.1, 4305S.3 and 4303P.1 of the Manual of Regulations for Non-Bank Financial Institutions are hereby amended accordingly.
This Circular shall take effect on July 1, 2013.
FOR THE MONETARY BOARD:
(SGD.) DIWA C. GUINIGUNDOOfficer-in-Charge
Cite This Law
Rate of Interest in the Absence of Stipulation, BSP Circular No. 799-13, Jun 21, 2013 (Philippines)
Rate of Interest in the Absence of Stipulation, BSP Circular No. 799-13 (Phil. 2013)
Related Laws
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- Regulations Implementing Section 249 (Interest) of the NIRC of 1997, as Amended under Section 75 of the TRAIN LawRevenue Regulations No. 21-18 • Sep 14, 2018 • Implementing Rules and Regulations
- Review of the Power Rate Structure in the Bicol RegionLetter of Instructions No. 1148 • Jun 10, 1981 • Presidential Issuances
- Early Settlement of Liabilities on Withholding Tax on Interest Paid on Foreign LoansLetter of Instructions No. 192 • Jun 7, 1974 • Presidential Issuances
- Recall of Existing Bail Bond in case of Failure of Accused to Appear for Trial Despite NoticeLetter of Instructions No. 40 • Nov 10, 1972 • Presidential Issuances
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