BSP keeps monthly credit card interest cap at 3%, raises other ceilings
The Philippine central bank increased the instalment loan add-on ceiling to 1.5% a month and the maximum cash-advance processing fee to ₱300.
The Bangko Sentral ng Pilipinas (BSP) announced on November 12 that the monthly interest ceiling for credit card borrowing would remain at 3 per cent, while raising the limits on instalment loan charges and cash-advance processing fees.
For credit card instalment loans, the maximum monthly add-on rate rises to 1.5 per cent from 1 per cent. The ceiling for a one-time cash-advance processing charge increases to ₱300 per transaction from ₱200.
The BSP said the changes seek to preserve consumer safeguards and access to borrowing, while giving card issuers greater room to set charges amid rising operating costs.
The revisions fall under BSP Circular No. 1242, issued on November 10, 2026. It becomes effective 15 calendar days after publication in either the Official Gazette or a newspaper with general circulation. The revised limits cover only new transactions made from that effective date.
Existing instalment agreements will retain their previously agreed conditions, the BSP said. Requirements covering consumer protection, disclosure and transparency will continue to govern all card charges.
The central bank introduced the ceilings as pandemic relief in November 2020, initially limiting monthly finance charges to 2 per cent. That ceiling became 3 per cent in February 2023. The BSP said there had been no cap before the pandemic.
The BSP said its regular assessments of the limits consider economic conditions, the financial health of banks and other institutions, and alignment with monetary policy.
