Credit tied to consumer product purchases in Chile fell 4.7% in the first half of 2017, Diario Financiero reported, citing banking association SBIF.

The slowdown was driven by the new maximum rate for smaller loans, which mainly hit banks in the consumer lending segment, the report noted.

Operating within the consumer segment are Banco Santander Chile's Banefe, Banco de Chile's CrediChile, Banco de Credito e Inversiones' Bci Nova and Itaú CorpBanca's Banco Condell.

According to Banking Superintendent Eric Parrado, people with lower incomes had been negatively impacted by the reduction of the maximum rate, since they were excluded from traditional bank loans due to a greater risk in their ability to pay. The situation has led banks to reorient their business to higher income segments, the publication said.