PERU · BUSINESS
Key Facts
- The country Peru, on South America’s Pacific coast, lets households and small firms borrow in both soles and US dollars.
- What happened Peru’s central bank raised the legal ceiling on dollar consumer and small-business loans from 99.84% to 103.14% a year.
- First time It is the first time the cap on dollar loans has gone above 100% a year.
- Soles loans The ceiling on loans in soles, Peru’s currency, rises from 114.13% to 114.68% a year.
- When The new caps apply from 1 November 2026 to 30 April 2027.
- Power Index Peru ranks 5th of 14 in The Rio Times Latin America Power Index, with 54.7 points (October 2026 edition).
Peru’s central bank raised its dollar loan rate cap on consumer and small-business loans to 103.14% a year, Gestión and Infobae reported Wednesday. It is the first time the legal ceiling on loans in US dollars has gone above 100%.
US investors have a stake, because Peru’s banks lend in dollars as well as soles and lender Credicorp trades on the New York Stock Exchange. It also lands after President Keiko Fujimori’s government sought to scrap the five-year-old usury law, which banks say shuts borrowers out.
What Peru’s Central Bank Changed
The Central Reserve Bank of Peru, known as the BCRP, sets interest rates and, since 2021, the legal maximum rates for some loans. Its new dollar loan rate cap allows up to 103.14% a year, up from 99.84%, Infobae reported.
For loans in soles, the ceiling edges up from 114.13% to 114.68% a year, Gestión and Infobae reported. The caps cover consumer loans and loans to micro and small businesses.
How the Ceiling Is Set
The power comes from Law 31143, a 2021 law against usury that changed the central bank’s charter. The bank updates the caps every six months using a formula set out in its Circular 0008-2021-BCRP, Infobae reported.
The new ceilings run from 1 November 2026 to 30 April 2027. The next update is due on 1 May 2027, based on average consumer loan rates from October 2026 to March 2027.
The Superintendency of Banking, Insurance and Pension Funds, Peru’s financial regulator, checks that lenders respect the caps. It can sanction any bank or lender that charges more than the legal maximum.
Banks and Lawyers Want the Caps Gone
Peru’s banking association, Asbanc, which speaks for the country’s commercial banks, argues that the caps have not made credit cheaper. “Excluding a person from formal credit does not remove their need for financing,” it said in remarks quoted by Gestión, Lima’s business daily.
José Goyburu, a partner at the law firm Cuatrecasas, said in Gestión that the limits keep thousands of people away from credit and should go. He said the higher ceilings only slightly widen the room to lend to riskier clients.
Goyburu also said the average number of new consumer borrowers each month fell about 11%, from roughly 46,000 in 2015 to 2019 to about 41,000. Asbanc says people shut out of banks turn to informal credit, including “gota a gota” (drop by drop) moneylenders who collect daily repayments.
Congress Keeps the Usury Law for Now
The government of President Keiko Fujimori asked Congress in August for special powers that included repealing the rate caps, Gestión reported. Opposition lawmakers objected, arguing that repeal would let lenders charge even higher interest.
The Chamber of Deputies, the lower house, later approved 90 days of decree powers for security and the El Niño weather threat, without the repeal. The bill now sits with the Senate, which is also weighing tougher tools against gangs.
What It Means for You
A dollar loan rate cap is a ceiling, not a price, and lenders may charge less, Infobae noted. At the full cap, a US$100 loan held for a year could cost up to US$103.14 in interest before other fees.
Foreigners living in Peru who take a consumer loan or run a small business should compare the yearly cost before signing. Investors in Peruvian banks will watch whether the caps survive, since scrapping them would let lenders price riskier loans freely.
What Is Not Known
It is not known whether the government will try again to repeal the caps through a separate bill. Nor is it clear how many lenders will use the higher dollar loan rate cap in November.
It is also unclear how many borrowers now pay rates close to the current limits. Whether the higher ceilings will speed up lending to small firms remains open.
More: Peru news in English, every day from The Rio Times.
Frequently Asked Questions
What is Peru’s new cap on dollar loans?
From 1 November 2026 to 30 April 2027, the dollar loan rate cap is 103.14% a year for consumer and small-business loans. The previous ceiling was 99.84%.
Who sets the maximum loan rates in Peru?
The Central Reserve Bank of Peru sets them every six months under Law 31143, the 2021 usury law. The banking regulator checks that lenders comply and can sanction those that charge more.
Does the cap apply to all loans?
No, it covers only consumer loans and loans to micro and small businesses. Lenders may charge less, because the cap is a ceiling rather than a target.
Sources: Gestión, ‘Bancos podrán cobrar tasas de más de 100% en créditos en dólares: ¿afectarán a deudores?’, 14 October 2026; Infobae Perú, ‘Créditos en dólares podrán costar más del doble desde noviembre’, 14 October 2026; Gestión, ‘Gobierno de Keiko Fujimori insiste en derogar tope a tasas de interés en pedido de facultades’, 28 August 2026; Credicorp, corporate website, 15 October 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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