April 22, 2026 – 16:22
The country’s banks and finance companies will be able to charge up to a rate of 27.05% annual interest in the month of next May, a value almost similar to the current month, reported the Superintendency of Banks (SIB). Interest that exceeds this value will be considered usurious.
The Superintendency of Banks (SIB), dependent on the Central Bank of Paraguay (BCP)reported that for the month of May of this year the maximum limitsfrom which the active interest rate is considered usurious, will be 27.05% for operations in local currency. The interest rate limit established for next month is slightly higher than the current month (27.02%), for loans in guaraníes, and is still below the limit that was in effect a year ago of 28.31%.
On the other hand, the parent bank also published the limits for loans in foreign currency, which may not exceed 11.21% for the month of May. The limit for loans in foreign currency is higher than the current one this month of 11.16%, according to the report.
Read more: Bank loan: How much interest can banks charge me in April?
Impact of the BCP rate cut
The limits for interest rates remain almost at stable levels, which responds precisely to the normalization of the reference rate or the Monetary Policy Rate (MPR) of the monetary entity, which is currently at 5.50% after two consecutive reductions by the Central Bank. It is expected that after the reductions in the monetary policy rate, this effect can also be transferred to market rates from now on.
Usurious interest rates will be considered compensatory and punitive rates, whose effective rates exceed by thirty percent (30%) the average of the annual effective rates received by banks and financial institutions on consumer loans, according to the terms and currencies in which said loans are granted.
