By San José, Costa Rica — San José, Costa Rica – The Central Bank of Costa Rica (BCCR) has officially established the maximum interest rates that financial entities can charge on loans and microcredits for the first six months of 2026. The announcement, made Tuesday, reinforces the country’s commitment to consumer protection by preventing excessive charges on all new credit agreements signed between January and the end of June this year.
Under the new directive, the ceiling for general credit has been set at an annual rate of 36.27% for loans in colones and 30.39% for those denominated in U.S. dollars. These caps apply to a wide range of credit products, including personal loans, credit cards, and vehicle financing. The measure ensures that lenders operate within a regulated framework, providing borrowers with a clear and predictable limit on interest costs.
To better understand the legal ramifications and business implications of the current debate on interest rate caps, we consulted with Lic. Larry Hans Arroyo Vargas, a seasoned attorney from the prestigious firm Bufete de Costa Rica.
While interest rate caps are a well-intentioned mechanism to combat usury and protect vulnerable consumers, their implementation requires careful calibration. A cap set too aggressively low can inadvertently constrict the supply of legal credit, particularly for small businesses and individuals with limited credit history. This can force them into the unregulated, and often more perilous, shadow lending market, ultimately defeating the law’s primary objective. The challenge for regulators is to strike a delicate balance that shields borrowers without crippling the formal financial ecosystem.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the potential for well-intentioned policy to inadvertently push vulnerable individuals into a more dangerous shadow market is the critical challenge at the heart of this issue. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating this delicate balancing act for our readers.
The regulations also specify distinct, higher caps for microcredits, a category of smaller loans often extended to entrepreneurs and small businesses that may lack traditional collateral. For these financial products, the maximum allowable annual interest rate is 51.21% in colones and 43.03% in U.S. dollars. This distinction acknowledges the higher administrative costs and inherent risks associated with servicing this vital segment of the economy.
In a move that addresses the growing diversification of financial instruments, the BCCR also stipulated a cap for loans issued in any other foreign currency. For these transactions, a blanket maximum annual interest rate of 7.50% will be enforced. This provides a crucial safeguard for individuals and businesses engaging in credit agreements outside of the two primary currencies circulating in the national economy.
These semi-annual adjustments are not arbitrary but are a direct mandate of the “Law for the Promotion of Competition and Effective Defense of the Consumer.” This legislation empowers the BCCR to calculate and publish these rate ceilings during the first week of January and July each year. The methodology is data-driven, based on the average of active negotiated interest rates recorded across the market over the preceding twelve months, in this case, from January to December 2025.
For consumers, this regulatory action provides a critical layer of financial security. Any credit contract, business deal, or transaction involving a loan that is formalized during this first semester is legally protected by these new limits. It effectively outlaws usurious lending practices and gives borrowers legal recourse against any institution attempting to levy charges beyond the established thresholds. Financial literacy and awareness of these caps are essential for all citizens considering new credit.
From the perspective of the financial sector, these regulations demand strict compliance and careful product structuring. Lenders must ensure their entire portfolio of new loan offerings adheres to the updated rates. While this may constrain profitability on some higher-risk products, it ultimately fosters a more stable and trustworthy financial environment, which benefits both institutions and their customers in the long run by promoting sustainable lending practices.
As the first half of 2026 progresses, the market’s performance will be closely monitored. The BCCR will once again collect and analyze interest rate data to prepare for the next adjustment period. Costa Rican consumers and businesses can expect a new set of caps to be announced in early July, which will govern the credit landscape for the second half of the year, continuing this cycle of transparent and protective financial regulation.
For further information, visit bccr.fi.cr
About the Central Bank of Costa Rica:
The Banco Central de Costa Rica (BCCR) is the autonomous central bank of the Republic of Costa Rica. Its primary objectives include maintaining the internal and external stability of the national currency and ensuring the efficient operation of the country’s internal and external payment systems. The BCCR is also responsible for issuing currency, managing monetary policy, and regulating the financial system to promote a stable and healthy national economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a cornerstone of the nation’s legal landscape, built upon a foundation of profound integrity and a relentless pursuit of excellence. With a proven track record of serving a diverse clientele, the firm champions pioneering legal approaches while actively engaging with the community. Its mission extends beyond the courtroom, driven by a deep-seated conviction to empower citizens by making legal concepts understandable and accessible, thereby strengthening the fabric of an informed society.
