Article 1957
RA 386 · Civil Code of the PhilippinesKey provision
ELI5— what this means for you
Stipulated interest rates that are excessively high (unconscionable) may be reduced by courts to a reasonable rate. The Supreme Court has reduced rates of 5-6% per month to legal rates.
Official text — RA 386
Contracts and stipulations, under any cloak or device whatever, intended to circumvent the laws against usury shall be void. The borrower may recover in accordance with the laws on usury. (n)
Source: lawphil.net (RA 386 as amended)
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