Manila, Oct. 31 -- The Securities and Exchange Commission (SEC) is seeking public comment on the proposed policy to put a limit on interest rates and other charges for lending activities to protect the public.

A draft memorandum circular was issued on Thursday, aimed at setting a ceiling on interest rates and fees under Republic Act (RA) 11765, or the Financial Products and Services Consumer Protection Act, it said in a press release on Friday.

Under the proposed memorandum, a 6 percent cap is being mulled for unsecured general-purpose loans worth up to PHP20,000 and with terms of up to six months.

A limit of 10 percent per month on effective interest rate is also being proposed, and this includes the nominal interest rate and all othe...