According to a private report, more and more families choose to finance themselves through personal loans. In July 2022, this type of credit moved a volume of $32,252 million and registered an increase of 3.8% compared to June. According to the survey, a sustained growth in the last 24 months of requests of this type was observed.
Personal loans: the mission to make ends meet
The INDEC reported last Thursday that the July inflation climbed 7.4% and accumulates 46.2% so far this year. With rivals in conflict, which always seem to run after price increases, making ends meet becomes an almost impossible mission.
The First Capital Group report showed the growth in demand for personal loans, such as “lifesaver” to have resources and pay debts and finance current consumption, such as food and service payments, especially those originating in Credit cards.
According to the survey, this line granted a total of $880,125 million accumulated in the period July 2021 to July 2022, representing a year-on-year growth of 64.2%. In the same previous period, that is, July 2020 to July 2021, the amount of the requests was $536,102, taking as a parameter the hard time caused by the economic crisis during the pandemic restrictions.
“During the periods in which the Complementary Annual Salary, the balances of the portfolios do not grow significantly, since many cancellations of installments are received thanks to the unusual income received by the debtors. In this particular case, as growth is lower than the increase in the cost of living expected for this month, we are witnessing a setback in real terms”, explained Guillermo Barbero, partner at First Capital.
The work also makes it clear that bank credit to the private sector is stagnant in real terms. Although in a context of unleashed inflation, the amount of pesos that are lent in the form of consumption with a credit card, personal loans, mortgage loans and other lines continue to grow only in nominal amounts.
During July of this year, the total balance of loans in pesos to the private sector reached $5,737,968 million, representing a year-on-year rise of $2,547,146 million, equivalent to an annual increase of 79.8%, values that are very close to the inflation of the period. Monthly growth has been $303,840 million, which represents 5.6%, below the value of expected inflation for this period.
Expenses on credit cards: the lifesaver to make ends meet
For their part, purchases with credit cards also rose, reaching $1,650,615 million, which means an increase of 2.5% compared to the end of last month, some $40,108 million above June and surely well below the expected inflation. The year-on-year growth reached 66.8%, and in this case it did not reach the inflation levels of the period.
“After the period of promotions carried out by electronic commerce and before the rise in interest rates established by the Monetary Authority, a drop in sales offers in interest-free installments can be seen, for this reason we see a drop in real terms of the accumulated balances of this item”, concluded Barbero.
Source: Ambito
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