The need to reactivate their businesses in a pandemic context has led small and medium-sized entrepreneurs to look for new financing options. On the other hand, the need to diversify their sources of income has encouraged more Peruvians to invest their savings in tools that were not used as much before and that have high returns, such as loans with guarantees.
“Guaranteed loans are a source of financing that is backed by an asset, for example, real estate. This allows the applicant to qualify for a higher loan with better terms, compared to a personal loan. On the other hand, the person or company that invests their savings in placing a loan has the guarantee of the property and a very attractive return”explains Carlos Ferreyros, General Manager of Prestamype.
According to data from the Peruvian company, during the second half of 2021 placements and the amount disbursed for secured loans grew by 80% compared to the same period in 2020. Similarly, it is expected that, with the economic reactivation underway, the total amount disbursed is multiplied up to 5 times this year.
But why are more and more Peruvians investing in this type of loan? For Ferreyros there are 4 main benefits:
1) High security. When the investor decides to make his money profitable in loans with real estate collateral, the guarantee is registered in public records in his name through a mortgage, which reduces the level of risk. “In case the applicant has any inconvenience to pay his debt, the property guarantees the person or company that invested in the loan,” he explains.
2) High profitability. The annual effective rate of return fluctuates between 12% to 24%. The return achieved by investing in collateralized loans is much better than the average of other tools, such as mutual funds (whose annual return, in the best of cases, is 6.9%) or fixed-term deposits (where the return annual fluctuates between 1.5% and 7%).
3) Free decision. The investor who decides to make his money profitable in secured loans is free to evaluate the profile of the applicant. There is no clause that limits or forces you to choose a proposal. “This evaluation must include the purpose for which the loan is requested, the income with which the loan will be paid and the appraisal of the property, as well as verification that it does not have mortgages,” he explains.
4) Greater support. The real estate guarantee that guarantees the loan is usually worth more than double the money placed by the investor. It is important to carry out a correct appraisal of the same before signing the notarial contract, for this reason it is important to have the advice of a specialized company with a track record.
The average amount of savings to invest in home equity loans ranges from 22,000 soles or more. In Peru there are companies that specialize in this investment and financing tool, such as fintech: Carrillo Royalty, Ginversiones, Prestaclub and Prestamype. The latter is the leading and pioneering company in the sector, and is registered with the Superintendence of Banking and Finance (SBS).
–
