The personal loans in pesos granted by financial entities They recorded an interannual growth of 204% according to data from the Central Bank of the Argentine Republic (BCRA). The total volume destined for these credits It went from $ 2.01 billion to $ 10.7 billion in a year, reflecting a strong rebound to consumption financing.
The demand for these instruments is due to several factors: the need of people to cover current expenses; the stability of the consumer price index, which disseminates INDEC; and the loss of rates.
The growth of personal loans was not an isolated case. The Mortgage credits They also showed a rise of 84.9% year -on -year, while pledge loans advanced 95.1% and the category “others” increased by 105.7%. In the non -financial private sector, The credits registered a nominal increase of 246.7%, going from $ 15.6 billion to $ 54.2 billion.
According to the economist and director of the consultant Focus Market, Damián Di Pace, this “boom” in personal loans is closely linked to the decline of interest rates. “The cut in the monetary policy rate discourages banks to maintain positions in letters of the BCRA, so part of these funds are destined for lace and are channeled towards the private sector,” explained.
Di Pace stressed that, in addition to the growth in personal loans, there is also a greater demand for mortgage loans and for the acquisition of durable goods, such as cars and motorcycles. “Within personal loans, funds are usually used for various consumption needs, including the purchase of durable goods such as appliances, telephony and household items,” he added.
As for the banks’ strategy, Di Pace said that financial institutions are finding an attractive level of performance in personal loans, which It could lead to new cuts in interest rates throughout the year to continue encouraging consumption financing.
As the Reba experts explain, the need to have an amount of money to conclude a project, reform or renew a household appliances, is one of the current problems that the main Argentine families have. In this sense, the quotas were always great allies of consumption so that people could specify their projects. In this way, users use as a strategy the request of one of the financing instruments, and then pay the amount owed in fixed installments with an interest rate agreed in advance.
“Personal loans are a good resource, even in a context where the CPI has a monthly increase percentage, since it allows you to have the money immediately for the cancellation of a debt, realization of a trip, replace Vanesa Di Trolio, Digital Development Manager in Reba says.
Personal loans: what to take into account when borrowing
When evaluating the possibility of taking out a personal loan, certain variables must be taken into account, while considering the economic and financial situation. Next, some key points:
1. Evaluate the real need for loan
- Is financing strictly necessary or there are alternatives (use of savings, sale of assets, financing in installments without interest)?
- Will the loan be used to consumption, productive investment or refinancial debts?
- Keep in mind that in high inflation scenarios, borrowing at a fixed rate can be convenient.
2. Compare costs: Nominal rate vs. Total financial cost (CFT)
- Not guide Annual Nominal Rate (TNA)but analyze the Total financial cost (CFT)which includes insurance, commissions and administrative expenses.
- In Argentina, the CFT can exceed 100% per year In some cases.
3. Impact of inflation and rate of rate
- With high inflation, a fixed rate It can be convenient, while in a scenario of low inflation, a variable rate may be more competitive.
- Consider if the loan is tied to Grapes either Cersince this can cause the quotas to increase in time.
4. Payment capacity and effect on Creditic SCORE
- Do not compromise more than 30% of monthly income in the payment of the fee.
- A good credit history allows you to access better rates in the future.
5. Alternatives to traditional banks
- Fintechs and virtual wallets offer loans with Less requirementsalthough with higher rates.
- Pre -approved credits in banks may have lower rate than those requested standard.
6. CLAUSES AND PENALITIES
- Analyze the small print: costs per anticipated paymenthidden commissions, mandatory insurance, etc.
- Some loans allow In advance amortization without costwhich is key if inflation accelerates.
7. Risk of over -indebtedness
- Evaluate whether loan is a structural solution or only one Financial patch.
- Avoid a spiral of debt that involves taking a new loan to pay another.
Source: Ambito
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