2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49C - Interest Rates or Charges (§§ 998 — 998q) › § 998n - Rates of interest and maximum finance charges

The following interest rates and financing charges are hereby adopted which shall be the maximum to be collected or demanded in Puerto Rico for specific types of credit, with the exception of deposits in banks and other financial institutions, and the further exception of such retail installment sales for which the maximum interest rates and financing charges have been fixed (or shall be fixed in the future) pursuant to the provisions of §§ 731 et seq. of this title.
(a) On mortgage loans for the construction or acquisition of housing or its refinancing. —
(1) Insured or guaranteed by the Federal Housing Administration or by the Veterans Administration. — The annual rate of interest and financing charges authorized by the Federal Housing Administration and the Veterans Administration, respectively.
(2) Conventional loans guaranteed by first mortgages. — The annual rate of interest equal to the gross yield required in weekly competitive bidding held by the Federal Home Loan Mortgage Corporation (FHLMC), as published weekly in the Wall Street Journal. Finance charges shall not exceed four percent (4%) of the credit amount. Discount charges on the sale of credit in the secondary market shall not exceed three percent (3%) of the credit amount.
(3) Conventional loans guaranteed by second mortgages. — One fourth of one percent (0.25%) on the maximum rate established in subsection (a)(2) of this section. Financing charges shall not exceed six percent (6%) of the amount of the loan. Discount charges for the sale of a credit in the secondary market shall not exceed six percent (6%) of the amount of the credit.
(4) Home improvements. — The annual rate of interest authorized by the Federal Housing Administration for Title I loans. Finance charges shall not exceed four percent (4%) of the credit amount.
(b) On credits for commercial, industrial, agricultural, or other nonresidential purposes of twenty-five thousand dollars ($25,000) or over (with or without mortgage guarantee).—
(1) From twenty-five thousand dollars ($25,000) but not exceeding one hundred thousand dollars ($100,000).— The annual rate of interest shall not exceed the prevailing prime rate at the time of disbursing the credit. Financing charges shall not exceed three percent (3%) of the amount of credit.
(2) Over one hundred thousand dollars ($100,000).— The annual rate of interest shall not exceed two percentile points over the prevailing prime rate at the time of disbursing the loan. Financing charges shall not exceed two percent (2%) of the amount of credit.
(c) On personal loans. —
(1) Cash advances by credit cards. — Fifteen percent (15%) annual interest.
(2) Other personal loans payable in monthly installments. — Nine percent (9%) annual interest computed on the add-on total amount of the loan for the full term thereof.
(3) Other personal loans payable on demand. — Fifteen percent (15%) annual interest.
(d) Loans collateralized by certificates of deposit or savings accounts. — Two (2) percentile points in excess of the rate of interest accrued by the certificates of deposit or savings accounts received as collateral.
(e) Marginal loans granted by brokers, collateralized by securities. — Two (2) percentile points on the average value of the broker’s call rate as published daily in the Wall Street Journal.
(f) Loans or obligations not covered by the provisions of the above-mentioned subsections. — Fifteen percent (15%) annual interest.
(g) [Repealed. Act Oct. 23, 1999, No. 319, § 16, eff. Oct. 23, 1999.]
(h) In case a credit is covered by two or more clauses of this section, the interest rate to be collected shall be that typified under the clause establishing the lesser rate; Provided, That subsection (d) of this section shall always prevail over the rest.
History —June 14, 1980, No. 3, p. 871, § 3; Oct. 23, 1999, No. 319, § 16.