Kerwin Tan

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SEC Recalibrates Interest Rate Cap for Financing, Lending Firms

By Kerwin Tan

– posted 9 months ago

The Securities and Exchange Commission (SEC) is tightening the cap on interest rates and related fees charged by financing and lending companies for specific loans to protect financial consumers, as well as promote the industry’s competitiveness.

The Commission on December 10 issued SEC Memorandum Circular No. 14, Series of 2025, which provides for the Recalibrated Ceilings on Interest Rates and Other Fees Charged by Financing Companies and Lending Companies.

The SEC adopted the policy in accordance with Section 6(a) of Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA), which grants the Commission the authority to determine the reasonableness of the interest charges or fees which a financial service provider may demand, collect, or receive for any service or product offered to a financial consumer.

Read the full Memorandum Circular here: https://www.sec.gov.ph/…/sec-mc-no-14-series-of…/