Colombia's Superintendencia Financiera announced the May usury rate at 28.17%, up 1.41 percentage points from April. This rate caps credit card interest. Banco Unión and Coltefinanciera have the rates closest to the limit.
The Superintendencia Financiera announced the usury rate effective from May 1 at 28.17%. This marks an increase from April's 26.76% and caps credit card interest rates.
The report, cut off on April 17, shows weighted credit card rates ranging from 26.67% to 18.37%. Banco Unión tops at 26.67%, followed by Coltefinanciera (26.45%), Banco Falabella (26.17%), and Banco Popular (25.99%). At the lower end, Coopcentral offers 18.37%, Banco de Occidente 21.3%, Itaú 21.19%, Banagrario 21.93%, and AV Villas 22.70%.
David Cubides, chief economist at Banco de Occidente, stated that “the usury rate is closely tied to the current bank interest rate and generally reflects credit conditions in the economy. As the Central Bank's rates have been adjusting, it is expected to reflect in the medium term”.
Camilo Pérez, head of Economic Research at Banco de Bogotá, noted the rate is 1.5 times the current bank interest. “In a context of rising interest rates, credit has become more expensive, raising that average and, multiplied by 1.5, translating into an increase in the usury rate”, he added. Pérez cautioned households to be careful with debt.
