Aruba caps consumer loan interest rates at 25% for first time

Aruba will introduce its first-ever legal cap on consumer credit interest rates, limiting them to a maximum of 25% starting August 1, 2026. The new regulation is designed to protect consumers from predatory lending practices that have long burdened borrowers with excessively high interest charges. This marks a significant shift in Aruba's financial regulatory landscape, as no such ceiling has previously existed under law. The measure applies to all consumer credit issued from August 1, 2026 onward, meaning existing loans are likely governed under previous terms. Advocates and consumers stand to benefit from greater borrowing transparency and reduced long-term debt burdens. The move signals growing government attention to consumer financial protection on the island.