“I requested your express loan online. We credit it to you at the moment and you have up to 45 days to return it,” promote the most important entities in Argentina.
The problem is not the nominal annual rate of 211% that they charge, nor the effective rate of 598%, but the total financial cost, which amounts to 912%.
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The entities excuse themselves in the rise in the cost of funding, in the greater delinquency that is coming in the system, in the face of the fall in purchasing power and in that they must advertise the maximum rates. However, in the fine print they clarify that lower rates may be applied than those reported according to the credit behavior of the applicant.
In turn, they clarify that the maximum amount of the express loan through Online Banking will be $105,000, with an accreditation that will become effective within 48 business hours from the request.
They also emphasize that national and provincial taxes are the responsibility of the client, and that express loans are taxed with stamp tax.
The bankers also clarify that, although the total financial cost says 912%, that is not what the client ends up paying, but rather what must be put, as a rule of the Central, but that the maximum period is a month and a half that they grant , so the rate in that case would be 114%.
They give as an example a loan of $10,000 with a nominal rate of 211%, which gives a single installment at 30 days of $12,137.44. Of course, in this case they forget about the other taxes, such as VAT, gross income and other administrative expenses that will end up representing the total financial cost.
The truth is that, as a CFO confesses, the banks had to invent this because personal loans are dead.
2023-08-23 12:59:35
#BCRA #interest #rates #transfer #costs #loans #reach #qpasó
