This law provides amendments to the Law on Credit Debtors presented to the Chilean National Congress. It provides the precise definitions, maximum interest rate caps, and general duties which the regulator should follow to monitor credit debtors.
For the purposes of this law, interest rate is defined as "a money credit operation which cannot be readjusted, and whose interest will be calculated in proportion to the underlying capital transacted". The law establishes that the interest rate of credit operations higher than 200 and smaller than 5,000 Unidades de Fomento should not exceed the general interest rate for loans. (Unidad de Fomento is a Unit of account that is used in Chile and is roughly equivalent to 38 USD.)
The annual interest base may be increased by fourteen percentage points at the most for operations above fifty Unidades de Fomento. The interest base may be increased by a maximum of twenty-one percentage points for operations below fifty Unidades de Fomento.