Usurious Interest in Private Lending under Philippine Law

I’ve placed a full-length, fully cited legal article—“Usurious Interest in Private Lending under Philippine Law”—in the canvas at the right. It tracks every statute, BSP/SEC issuance and Supreme Court decision up to May 2025, with practical checklists for both lenders and borrowers.

Highlights

• Statutory backbone: Act No. 2655 (Usury Law) is still alive; CB Circular 905 (1982) merely suspended its ceilings, not the law itself. (Lawphil, DivinaLaw)

• Judicial red line: The Supreme Court routinely voids rates at ≥ 3 % per month (≈ 36 % p.a.) as “unconscionable,” e.g., Medel v. CA, Castro v. Tan, Chua v. Timan. (Tribune, Jur.ph)

• Sector-specific caps:

  • Credit-cards: 36 % p.a. (BSP Circular 1165 s. 2023) (Bureau of the Treasury)
  • Micro-loans ≤ ₱10 k, ≤ 4 months: 6 % nominal / 15 % effective per month (BSP Circular 1133 + SEC MC 3-2022) (Ocampo & Suralvo, BusinessWorld Online)

• Legal interest: Since Nacar v. Gallery Frames (2013) the judgment rate is a flat 6 % p.a. codified by BSP Circular 799. (Bureau of the Treasury)

• Pending bills: House Bill 10315 and Senate Bill 1366 (19th Congress) would restore hard caps (36 %–48 % p.a.) but remain in committee. (RESPICIO & CO.)

Feel free to review the document and let me know if you’d like deeper discussion on any section, added case digests, or formatting tweaks!