“500,000 Peruvians Accessed Black Loan Market Due to Lack of Financial Inclusion”

At least 500,000 Peruvians have accessed the black loan market, warns the Peruvian Federation of Municipal Savings and Credit Banks (FEPCMAC).

The union warns that in informal loans, which are related to the ‘drop by drop’ modality and to extortionists, more than S/ 1 million have been disbursed in the last year due to the lack of financial inclusion.

“They have imposed a system, an interest rate of 20% every 24 days. It is a system that has grown 100% in the last two years”, commented Jorge Solís, president of FEPCMAC.

As recalled, these credits are offered freely and are not regulated by the Superintendency of Banking, Insurance and AFP (SBS), so the collection methods may involve abuse.

Every year, this type of informal credit generates interests between 300% and 400% and have been affecting not only users but also the sector of Municipal Savings Banks.

In the midst of this situation, the union asks the Government to repeal the law that limits interest rates in the financial sector.

“It is causing many mypes to resort to another type of credits with more expensive conditions”, says Solís.

In addition to this, they urge the Executive Power to publish measures to reactivate credit to mypes and warn that the recent decree issued to protect the stability of the microfinance system would not have an impact due to its conditions.