After a 2020 where the pledge loan was affected by the economic impact of the pandemic, this type of credit has begun to recover and is heading for a growth of just over two digits at the end of the year, said Andrés Corona Juárez, director of Credit and Risks for National Mount of Mercy.
In an interview, Corona Juárez commented that as the country’s entities begin to have a greater commercial reopening, it will be important to provide liquidity to microentrepreneurs, especially those who are not currently served by traditional financial institutions, such as banks, because many of them work in the informal sector.
“We began to observe growth, we grew at rates of 5 or 6% in credit during the first five months of the year, it means that people are beginning to demand more credit and we are placing more. That is good because the economy is reactivated “, detailed the director of National Mount of Mercy.
According to Corona Juárez, although the behavior of the pledge credit during 2020 can be considered as positive, since about 7.8 million loans were placed, this meant a “slight” decrease compared to the 10.5 million loans placed in 2019 ; However, in 2021, at least a 10% increase is expected compared to the previous year.
“The issue of the advance of the green traffic light will be decisive. A fundamental element of traffic lights is the restriction of businesses that are considered non-essential economic activity, in the green traffic light there is the possibility that businesses that are in non-essential sectors reopen and this is important for economic activity, especially in the informal one ”, commented the director of this private assistance organization focused on social financing.
Crown Juarez He explained that, despite the economic difficulties of recent months, the security recovery index was maintained, which means that eight out of every 10 clients of the organization can recover their garments; however, in the part of personal loans, where a collateral is not required, delinquencies did rise.
Pledge delinquency, remains
Crown Juarez He explained that, despite the economic difficulties of recent months, the security recovery index was maintained, which means that eight out of every 10 clients of the organization can recover their garments; however, in the part of personal loans, where a collateral is not required, delinquencies did rise.
Corona Juárez explained that, despite the economic difficulties of recent months, the security recovery index was maintained, which means that eight out of every 10 clients of the organization can recover their garments; however, in the part of personal loans, where a collateral is not required, delinquencies did rise.
“Out of every 10 clients, eight recover their garments, that is, they come, pay capital plus interest,” explained the manager and added that the two clients, of those 10, who do not recover their belongings, can obtain monetary compensation if said garment it is sold above the loan granted.
National Mount of Mercy It has a popular financial society (sofipo), where it grants unsecured personal loans, where the average credit is 22,000 pesos. In this context, despite the support programs for its borrowers, hand in hand with the accounting facilities issued by the authority, delinquency in this financial vehicle did suffer an impact.
As of last March, the sofipo presented a delinquency rate of 11.65%, when a year earlier this indicator was 6.40 percent.
The manager emphasized the need to serve microentrepreneurs, especially those who work informally. “It is a very powerful job generator segment … that segment for hiring three or five additional people and when you give them a loan, you are actually boosting employment for three or five more people”
Corona Juárez explained that, with the issue of the pandemic, digitization advanced in the operation of the institution.
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