In El Salvador the Law against Usury, Decree number 221 of January 24th 2013, prohibits, prevents and sanctions any kind of usury with the aim to protect possession and property rights of people.
The Central Bank of the country, every 1st of January and 1st of July, announces the maximum legal interest rates that can be included in loans. The Central Bank distinguishes among (a) consuming credits granted to natural persons, (b) credits granted to natural persons through credit cards, (c) home credits, (d) enterprise credits, (e) multipurpose microcredits.
These measures are a limit to any interest rate above those established as legal maximum interest rates by the Central Bank.
Before entering into loan agreement, it is worth to take a look to these legal limits imposed by the Central Ban of El Salvador. In case of any doubt do not subscribe the loan and contact a lawyer.
Fernando Argumedo
CENTRAL LAW
El Salvador
