🕓 Last Updated: June 6, 2023, 12:25 pm (PH time)
The Bangko Sentral ng Pilipinas (BSP) Monetary Board has determined to set the existing ceilings on credit cards previously prescribed under Circular No. 1098 dated Sep. 24, 2020, the BSP press release stated on Nov. 15, 2022.
The maximum interest rate or finance charge on the unpaid outstanding credit card balance shall remain at 2% monthly or 24% in a year. Meanwhile, the maximum monthly add-on rate on credit card installment loans is nailed at 1%, and the maximum processing fee on credit card cash advances is capped at Php200 in each transaction.
Ceilings on credit cards to revisit
“Will continue to closely monitor evolving domestic and external developments that will impact the state of credit card financing, sustainability of credit card operations and viability of banks/credit card issuers,” the BSP said in a statement.
The Monetary Board’s decision of maintaining the ceilings on credit cards is subject to a revisit in January 2023. RQJ
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Regel Javines is the founder and editor of Philippine Pundit. Born in Leyte and shaped by struggle, he writes truth from the margins—where politics, faith, and life converge. A blogger since 2011, his work has appeared on global citizen journalism platforms. He currently serves as a consultant for the House of Representatives’ Congressional Assistance, Response, and Education (CARE) Program and as a Project Development Officer II at the DSWD.