The interest associated with quick credits or mini-credits reaches an average rate of 409.6%. That is to say, repaying a loan of 300 euros requested for a month can cost up to 103, according to Asufin, which has analyzed the products of this type offered by the 16 main credit institutions in the market and has come to the conclusion that in so far this year they have become significantly more expensive.
The second barometer with which this association of financial users analyzes the evolution of these instant credits reveals that, on average, those who request them are paying 103 euros of interest compared to 96 last year, when 890,000 were granted. Thus, in terms of APR (the real price, which includes interest rates, but also commissions and other expenses), and with a term of 30 days and an amount of 300 euros, the most common, it has gone from 2,770.6% to 3,436.8%.
According to these data, the 900 euro loan available in one day experiences the greatest increase, a product designed for payroll advances, which increases its interest rate from 370%, from 2020 to 2,010%, now. If we calculate its price, the APR shoots up to 14 digits, and we go from paying 8.97 euros of interest to 53.75 euros.
In addition to this increase, the barometer also highlights that two companies in the sector (Creditosí and Contante) have begun to charge an opening commission, therefore, regardless of the amount granted, they charge an additional 10%.
The analysis recognizes that in the midst of a crisis, with a decrease in recurring income or delays in the payment of social benefits, mini-credits can become a quick alternative to face unforeseen expenses or get cash. However, before falling into the temptation, they warn that it is necessary to know the peculiarities of this financial product, since it can easily become a trap that generates over-indebtedness for the financial user. In fact, in addition to its high interest rates, another of its characteristics is that they contemplate severe penalties for delay, ranging from a fixed amount to a daily interest percentage: from 10 to 50 euros and from 1% to 1.4% interest.
“As far as possible, it is always advisable to go to the conventional loan circuit, with lower interest rates, from 7% to 8%,” recommends Patricia Suárez, president of Asufin, who recalls that if comparing with the average cost of For credit cards (17.51%, according to data for the month of March) hiring a mini-credit means paying 196.3 times more. With respect to personal loans of one to five years, the difference is much greater, If we compare it with its average APR for March (7.52%), it implies assuming a cost 456.2 times higher.
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