The maximum annual interest rate local lenders are allowed to impose on their loan services will be lowered to 24 percent from the current 27-point-nine percent. 

The Financial Services Commission(FSC) on Wednesday reminded the public of the change, urging them to know it will be illegal if they are required to pay annual interest rates higher than 24 percent for any new or extended loan beginning on Thursday. 

The watchdog said that by April it will intensify its efforts to crack down on loan sharks imposing interest rates surpassing the new legal threshold, warning they will face strict consequences. 

For low-income households or those with poor credit ratings, who will likely have more difficulty in taking out loans due to the measure, the FSC will also provide low-rate loans for those applying for them.