Microcredits to make ends meet, how much does it cost to finance yourself with virtual wallets?

Within the framework of the strong economic crisis unleashed by acceleration inflationary -which is now declining- and the collapse in the purchasing power of salaries, Argentines are finding it increasingly difficult to make ends meet. Without going any further, the consultant Focus Marketwho drives Damian Di Paceobserved a drop in 13.5% of mass consumption in the accumulated of the first quarter.

In that context, many people begin to evaluate the option of personal loans to be able to cover basic needs. However, in an Argentina with more than 35% of informal workers, who are often not found banked or do not qualify to access financial loans.

For these people, the virtual wallets They are presented as a possible alternative to access a loan and not only for the unbanked, many times even for the banked due to financing rates, which are presented as lower. How much money do they lend, what requirements do they ask for and what are the alternative methods of requesting credit?

Uala

The credit offered Uala It is $200,000 to be returned in a single payment or up to 24 fixed installments. However, the amount the client accesses will depend on the client’s credit history.

Furthermore, the virtual wallet of Pierpaolo Barbieri offers credits “for selected users only” and financing rates “they vary according to the profile”as explained by the banking entity.

Financing costs vary between the following amounts:

• Annual Nominal Rate (TNA): minimum: 115% – maximum 207%.
• Annual Effective Rate (TEA): minimum: 200.07% – maximum 576.42%.
• Total Financial Cost (CFT): minimum: 273.41% – maximum 875.30%

Confirmation to know if the credit will be granted is immediate. Then, once accepted loan offer and data loadedthe money is credited to the virtual wallet within 24 hours skilled

Orange

For its part, the virtual wallet of Orange card grants credit loans between $3,000 and $1,337,000in all cases subject to credit evaluation. Accreditation, for security reasons, may take up to 48 hours.

Within these limits, you can choose the desired amount and the deadline to return it. In this case, it is possible to pay the fees until the 10th of each month. The money can be used to make payments with the Debit either QRto make transfers to other personal or third-party accounts, or extract the banknotes at any of its branches, since the accreditation is carried out in the virtual wallet.

ANDthe amortization system used is French, which means that the installments are consecutive during the life of the loan, but what varies are the amortization and interest percentages that make them up. The financing costs are as follows:

• Annual Nominal Rate (TNA): 194%.
• Annual Effective Rate (TEA): 503.92%.
• Total Financial Cost with VAT (CFT TEA): 753.30%.
• Total Financial Cost with VAT (CFT TNA): 234.74%.

Personal Pay

The virtual wallet Personal Pay also offers the option of personal loans through “Extra Pay”, which grants an amount according to the credit rating of the borrower. Furthermore, if you pay that credit within 48 hours. After use, there is no cost.

After 48 hours, daily compensatory interest will be applied, as reported at the time of activating the service, for the balance used. Current rates can be consulted in the app. Like Orangethis virtual wallet uses the amortization system used is French, which means that the installments are consecutive during the life of the loan, but what varies are the amortization and interest percentages that make them up. The financing costs are as follows:

• Annual Nominal Rate (TNA): Minimum: 170.00%.
• Annual Effective Rate (TEA): Minimum: 390.99%.
• Total Financial Cost (CFT): Minimum: 568.94%.