------------------ ESP

Credit Cards: 43% Interest Rate for Financing up to ARS200,000

The BCRA's Board decided to keep the maximum interest rate at 43% APR to finance unpaid credit card balances, which represent 95.5% of the users that benefit from this type of financing.

The BCRA’s regulation states that financial institutions must charge a 43% interest rate to credit card balances up to ARS200,000 (two hundred thousand pesos) per card issued.

As regards balances over ARS200,000, financial institutions may charge a differential rate up to the maximum permitted by the Law on Credit Cards, that is, 25% above the interest rate charged on personal loans, and similar to the rate charged on non-bank cards.

According to financial system statistics, 95.5% of credit card balances are below the threshold set out in the law; therefore, those financial users will keep to the maximum interest rate of 43%.

Only 4.5% of the credit cards issued exhibit balances higher than ARS200,000, and banks may charge the differential rate only on the portion of the balance exceeding that threshold.

January 6, 2021

Compartilo en Facebook   Compartilo en Twitter    Compartilo en Linkedin    Compartilo en WhatsApp