A government-backed bill moving through Costa Rica’s Legislative Assembly could make some small consumer loans more expensive by shifting them into a category that allows higher interest rates.
The proposal would change the legal definition of microcredit under Costa Rica’s consumer protection law. Today, a microcredit is a loan or financed purchase worth up to 1.5 times the base salary of a Judicial Branch office clerk, or ₡693,300. The bill would raise that ceiling to three times the base salary, or ₡1,386,600.
That change matters because Costa Rica allows higher maximum interest rates for microcredits than for regular loans. The current maximum annual rate for regular colón-denominated credit is 36.48%, while microcredits in colones may charge up to 51.51%.
In practice, loans or store-financed purchases between ₡693,300 and ₡1,386,600 that are now treated as regular credit could be reclassified as microcredit if the bill is approved. That would not require lenders or retailers to charge the maximum allowed rate, but it would give them legal room to charge more.
Supporters argue the change could help people who have been pushed out of formal credit markets and left vulnerable to “gota a gota” lenders, the informal loan sharks known for quick cash, extreme interest and intimidation. They say expanding access to formal small loans could give borrowers a legal alternative when banks and regulated lenders reject them.
Opponents say the bill does not directly attack illegal lending and could instead raise costs for families who already depend on credit to buy appliances, furniture, electronics or other household goods. They argue that people using installment plans often do so because they do not have enough cash to pay upfront, making them especially vulnerable to higher borrowing costs.
The debate comes five years after Costa Rica approved its anti-usury law, which created legal ceilings on credit interest rates. Those ceilings are updated twice a year, in January and July, and are meant to limit how much lenders can charge borrowers.
The key concern is the gap between the two caps. A loan just above ₡693,300 is currently outside the microcredit category. Under the bill, that same loan could fall under the higher microcredit ceiling. The final cost would still depend on the lender, the term, fees and payment schedule, but the legal limit would be higher.
The bill has not become law. It still requires legislative approval, and lawmakers may amend or block it. But by reviving the proposal, the government has placed a technical credit-law change onto the public agenda with a direct effect on household borrowing costs.
