After several banks decided to reduce the rate of interest of their cards, the Financial Superintendence of Colombia (SFC) created new modalities of certification of the Current Bank Interest (IBC) in credits for the development of any productive activity in urban or rural areas that are requested from April 1 to September 30, 2023.
In the case of loans greater than 25 current legal minimum wages and up to 120 smlvm, that is, from $29 million to $139 million, the interest rate is 27.11%.. While for rural and urban productive loans between six and 25 current legal minimum wages (from $6,960,000 to $29,000,000) it is 31.19%.
For the rural and urban productive popular credit modality of up to six current legal minimum wages, which is equivalent to $6,960,000 million, the interest rate is 35.26%.
“These certifications issued today by the Financial Superintendence for the new credit modalities created by Decree 455 of March 29, 2023, They will be in force from April 1 to September 30, 2023 and may be extended for three more months, in view of the transition period provided for in the regulation,” the SFC pointed out.
Likewise, it said that the remuneratory and late payment interest may not exceed 1.5 times the Current Bank Interest, so they remain as follows: productive credit of greater amount, 40.67%; rural and urban productive credit, 46.79%; and rural and urban productive popular credit, 52.89%.
Regarding the level of usury, the regulatory entity said that for the largest productive credit it would be 40.67%, for rural and urban productive credit, 46.79%; and for rural and urban productive popular credit, 52.89%.
Can entities have a different rate than the one certified by the Superfinanciera?
The Current Bank Interest that the Superfinanciera certifies is a reference for each type of credit, so that the entities of the financial system can apply a different rate, however, they cannot exceed the level of usury defined in the Penal Code (which exceeds in half the IBC).
“It is important to take into account that financial institutions establish these rates taking into account the debtor’s risk profile, the amount and the term to which it will be financed, the cost of funding, that is, the cost of attracting resources from the public or from other sources,” detailed the SFC.
Likewise, the Superfinanciera certifies monthly the Current Bank Interest for consumer and ordinary credits, through which the development of economic activities on a larger scale of companies and individuals is financed, in the same way for free investment credits, payroll , educational, vehicles, cards and rotary.
“Annually it also certifies the IBC for low-amount consumer credit, which is aimed at people who have not had a prior connection to the financial system and who require resources on a smaller scale to finance their private activity and finances up to six current minimum wages “, indicates the control body.
If a person has a microcredit in amount and conditions similar to the new types of credit, do the conditions change?
No. The Financial Superintendence clarified that the loans that have been granted and disbursed by the entities supervised by them in the microcredit modality until March 31, 2023 will be governed until the balance is depleted by the current bank interest rate certified for said credit modality by the Financial Superintendency through Resolution number 1968 of December 29, 2022.
With these new credit options, do the current ones cease to exist?
The control body assured that in these “new credit modalities, the characterization of the microcredit portfolio was taken into account to improve the profiling of credit needs by the different sectors of the economy, especially the activities that make up the popular and community economy, as well as micro, small and medium-sized companies”.
Can the new credit modalities be requested to be used for personal expenses or purchases?
According to what was announced by the Superfinanciera, no. The new credit modalities are to finance productive activities that are carried out in rural or urban areas with the aim of achieving a greater formal credit inclusion of those natural and/or legal persons that make up the popular and community economy, as well as micro, small and medium businesses.
