Usury Rate in Colombia: How to Know the Interest Limit That Can Be Charged to 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% Annual Effective (EA). This maximum legal limit is calculated by multiplying the Current Banking Interest (IBC) certified by the Financial Superintendence by 1.5, which for this month was 19.19% EA. A charge above this cap may 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 your credit card for a medical emergency, or decide to buy an appliance on installments. Suddenly, when you check your statements, the interest seems to multiply on its own. Honestly, the biggest frustration isn't having to pay interest on borrowed money; the real annoyance is feeling like you're being overcharged and not knowing how to check it mathematically 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 rates on the Financial Superintendence (SFC) website can be a headache. In this guide, I will explain simply how to check interest rates and what steps you can take to defend your pocketbook.

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

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 installments 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 Superintendence of Colombia (SFC). The SFC publishes the IBC by modality and its validity periods; 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 type of credit. For the period between July 1 and July 31, 2026, the SFC certified a Current Banking Interest of 19.19% Annual Effective (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 credits in July 2026 is fixed 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 items charged.

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 buyers of used cars negotiate direct installment payments with the seller or seek external financing. It is precisely in these financed sales that being clear about the legal cap helps you review a promissory note before signing it.

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

This is where most Colombians fall into the trap or get misled. The IBC and the usury rate are expressed in terms of Annual Effective 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 mistake is to take the Annual Effective rate and simply divide it by 12. Don't do it! Compound interest doesn't work like that mathematically.

Informal loans, credit cards, and mortgage loans

One detail you cannot overlook is that the usury rate applies according to the modality of the credit. The 28.79% EA for July 2026 corresponds to consumer and ordinary credits; 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 loans or loans between family members? The limit can also be relevant in loans between individuals and installment sales. The Ministry of Justice advises reviewing each case and, in the event of alleged usury, going to the competent authority; it is not advisable to automatically declare that a crime occurred without reviewing documents, dates, and modality.

Steps to report if you are being charged usury 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 action path indicated by the Ministry of Justice:

• 1. Gather all the evidence: Organize your bank statements, the loan contract, the 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 Superintendence 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 to file the complaint. If there is no Prosecutor's Office in your municipality, the Ministry of Justice's guidance indicates that you can go to the National Police.

Note: Remember that this is an informative guide. A high charge may be a sign of excess and must be reviewed along 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 potential 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 in July 2026?

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

❓ Who sets the usury rate in Colombia?

The Financial Superintendency of Colombia (SFC) certifies the Current Banking Interest (IBC). The usury limit is determined by multiplying that IBC by 1.5, as explained by the SFC and the Bank of the Republic.

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

Do not divide the Annual Effective Rate (EA) by 12, because you must account for compounding. Use the equivalent financial formula or, for greater accuracy, the SFC's official 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, review the billed items, and file a claim through the entity's channels, the Financial Ombudsman, or the SFC.

❓ Does the usury rate apply to loans between individuals?

The limit may apply to loans between individuals and installment sales, according to the Ministry of Justice's guidance. The facts must be reviewed on a case-by-case basis before concluding that a crime exists or suspending payments.

❓ Where do I report or file a claim if I am charged more than the legal limit?

If it is a supervised financial entity, go to the entity itself, the Financial Consumer Ombudsman, or the SFC. For alleged criminal usury, the Ministry of Justice directs you to file a complaint with the Prosecutor's Office or go to 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.