Usury Rate in Colombia: How to Know the Interest Limit They Can Charge You

Quick answer: For the period from July 1 to July 31, 2026, the usury rate for consumer and ordinary loans in Colombia is 28.79% Effective Annual (EA). This legal maximum limit is calculated by multiplying by 1.5 the Current Banking Interest (IBC) certified by the Financial Superintendency, which for this month was 19.19% EA. A charge above this cap can be a sign of excess and should be reviewed according to the period, the modality, and the competent authority.

It has happened to all of us: you take out a personal loan, use a credit card for a medical emergency, or decide to buy an appliance in installments. Suddenly, when you check your statements, the interest seems to multiply on its own. Honestly, the biggest frustration is not having to pay interest on borrowed money; the real annoyance is feeling like you are being overcharged and not knowing how to mathematically verify it without being a financial expert. If you want to see real options right now, you can see cars and motorcycles available on Colombia Move — posting is completely free.

In Colombia, there is a limit that protects consumers against excessive charges. However, finding the historical rate data on the Financial Superintendency (SFC) website can be a headache. In this guide, I explain in a simple way how to check interest rates and what steps you can take to defend your wallet.

What is the usury rate and how is it exactly calculated?

The usury rate is not a fixed number that someone invents at random, nor is it a permanent rate. It is the maximum interest limit applicable to a money loan or the sale of goods on credit during a specific period.

The golden rule for calculating it is quite simple: Maximum legal rate = Current Banking Interest (IBC) x 1.5.

The Bank of the Republic explains the concept, but be careful with this: the entity in charge of officially certifying the IBC is the Financial Superintendency of Colombia (SFC). The SFC publishes the IBC by modality and its validity; by multiplying that value by 1.5, we get the corresponding limit.

The current limit: Usury rate for July 2026

It is vital to understand that the rate changes by validity period and by credit modality. For the period between July 1 and July 31, 2026, the SFC certified a Current Banking Interest of 19.19% Effective Annual (EA) for the consumer and ordinary credit modality, according to its certified rates consulted on July 30, 2026.

Applying the formula (19.19% x 1.5), the usury rate for consumer and ordinary loans in July 2026 is set at 28.79% EA. A charge that exceeds this percentage in that modality and validity period requires a review of the contract, the period, and the charged concepts.

This information is crucial in high-value transactions. According to demand data on Colombia Move (July 2026), the vehicle section recorded 834 views and 12 active ads. Some used car buyers negotiate direct installment payments with the seller or seek external financing. It is precisely in these financed sales that knowing the legal cap helps you review a promissory note before signing it.

The mistake that costs you money: Effective Annual vs. Monthly

This is where most Colombians fall into the trap. The IBC and the usury rate are expressed in terms of Effective Annual Rate (EA). However, when you go to a store or talk to a lender, they usually talk to you about monthly rates (for example, "I charge you 3% monthly").

The fatal error is taking the Effective Annual rate and simply dividing it by 12. Don't do it! Compound interest doesn't work that way mathematically.

Informal loans, cards, and mortgage loans

A detail you cannot overlook is that the usury rate applies according to the modality of the credit. The 28.79% EA of July 2026 corresponds to consumer and ordinary loans; before comparing it with a card, free investment credit, or personal loan, confirm how the product is classified and what period it bills.

However, modalities such as microcredit or low-amount loans have their own certifications and caps. On the other hand, if you are buying a home, the rates are reviewed under the parameters applicable to that product.

And what about informal or family loans? The limit can also be relevant in loans between individuals and installment sales. MinJusticia guides checking each case and, in the face of alleged usury, going to the competent authority; it is not advisable to automatically declare that a crime occurred without checking documents, dates, and modality.

Steps to report if you are being charged usurious interest

If you did the calculations, verified the exact month of your charge, and found that the rate seems to exceed the applicable limit, don't sit idly by. Follow this course of action indicated by the Ministry of Justice:

• 1. Gather all evidence: Organize your bank statements, the loan contract, signed promissory notes, payment receipts, and any WhatsApp chat or email where the charged percentage and dates are evidenced.
• 2. If it is a regulated entity (banks, financial institutions): File a formal complaint with the entity. You can also go to the Financial Consumer Ombudsman, file a complaint with the Financial Superintendency of Colombia, or evaluate a financial consumer protection action.
• 3. If it is an individual or informal lender: In the face of alleged usury, you can use the official channels of the Prosecutor's Office (Fiscalía) to file the complaint. If there is no Prosecutor's Office in your municipality, the guidance from MinJusticia indicates that you can go to the National Police.

Note: Remember that this is an informative guide. A high charge can be a sign of excess and should be reviewed together with the period, the modality, and the competent authorities before making the decision to suspend a payment.

Defending your rights as a financial consumer requires being informed. Knowing the caps gives you the power to negotiate better and detect possible excesses, just as knowing your rights when buying second-hand items helps you avoid problems.

Frequently asked questions

❓ What is the usury rate in Colombia for July 2026?

For the period from July 1 to July 31, 2026, the usury rate for consumer and ordinary credit is 28.79% Effective Annual, according to the SFC. This percentage changes depending on the validity period and the certified modality.

❓ Who sets the usury rate in Colombia?

The Financial Superintendence of Colombia (SFC) certifies the Current Banking Interest (IBC). The usury limit is the result of multiplying that IBC by 1.5, as explained by the SFC and the Banco de la República.

❓ How do I convert an effective annual rate to a monthly one?

Do not divide the Effective Annual Rate (EA) by 12, because you must consider capitalization. Use the equivalent financial formula or, for greater accuracy, the official SFC interest rate conversion simulator.

❓ Can a credit card charge more than the usury rate?

A card must respect the limit applicable to its modality and period. If you notice a possible excess, compare equivalent rates, check the billed concepts, and file a claim through the entity's channels, the Financial Consumer Ombudsman, or the SFC.

❓ Does the usury rate apply to loans between individuals?

The limit can apply to loans between individuals and installment sales, according to guidance from the Ministry of Justice. The facts must be reviewed on a case-by-case basis before concluding that a crime has been committed or suspending payments.

❓ Where do I report or file a claim if they charge me more than the legal limit?

If it is a supervised financial entity, contact the entity, the Financial Consumer Ombudsman, or the SFC. For alleged criminal usury, the Ministry of Justice suggests filing a complaint with the Prosecutor's Office or contacting the Police if there is no local office.

❓ What evidence should I keep before claiming for usury?

Keep contracts, promissory notes, statements, payment receipts, and written communications that show the rate and dates. Also, save the SFC certification corresponding to the period and modality you are comparing.