CBSL revises down caps on interest rates on credit cards, overdrafts & pawning facilities

Aug 20, 2020 (LBO) – Considering bank lending rates of certain financial products which continue to remain high, the Central Bank has decided to revise downward the caps on interest rates on credit cards to 18 percent per annum, on pre-arranged temporary overdrafts to 16 percent per annum and on pawning facilities to 10 percent per annum.

The Monetary Board of the Central Bank was of the view that penal interest rates need to be capped at 2 percentage points over the regular interest rates charged on the relevant credit facility.

“Directions to effect these regulated interest rates will be issued shortly,” the Central Bank said in a statement.

“The Central Bank will continue to monitor domestic and global macroeconomic and financial market developments and take further measures to support the economy to return to a higher growth path without delay, given subdued levels of inflation.”

Regulated interest rates revised downwards.

  • Maximum interest rate on Credit Cards – 18.00%
  • Maximum interest rate on Pre-arranged Temporary Overdrafts – 16.00%
  • Maximum interest rate on Pawning Facilities – 10.00%
  • Penal interest rate over the regular interest rate – 2.00 percentage points