Due to the quarantine, Argentines are seeking personal loans to finance their current expenses due to the slowdown in the economy. Tips to get them
Protection to be exposed to coronavirus that quarantine provides has a dark side for many families: the impossibility of generating income and the consequent need to search financing to face the expenses currents. So it is important to know how they can be removed loans personal during home confinement.
The operative to get this life buoy financial in the middle of the pandemic is simple. First of all, any person who is a bank customer and operates by homebanking, or you have downloaded the app of the entity with which it operates in its mobile or tablet, you can access from your home and at any time of the day to a credit pre-approved, which is practically granted instantly.
You should only access the Web of the Bank with the Name and key of the user, and go to the application tab or formalities, where says “loans“o”credits”
There you must enter the line “personal“, to which it will be necessary to enter the option of”calculate“, to know what is the Maximum amount to which you have access to request, according to income registered in the bill decade client.
You are also informed of the value of the share, the rate of interest applied and the term awarded for the return of the pesos.
Once approved, it will credit the amount requested in the bill, and then the money with free destination to do some payment virtual necessary of services or taxes, or transfer to the desired destination or, simply, withdraw money by ATM for the desired use.
The great against of this type of loans is the high total financial cost (CFT) they have included, since they can overcome in some cases a rate of interest 100% annually.
On the side of requests physical of personal loans, days ago the entities began to reopen their branch offices, but for the logical safeguards that the coronavirus care is provided only with reservation prior to a turn through the site Web of the Bank.
Home banking allows you to obtain personal loans quickly and easily, but the costs are high
Quarantined personal loans
The current situation shows that practically all loans personal awarded are the pre-approved virtually through the channels digital.
“We have pre-approved loans so on-line, and at the moment we do not have loans on demand online, but we hope to offer them soon “, graph to iProfessional From a Bank private, where they clarify that the loans “automatic“In general terms, they represent around 30% of the total loan placement. A situation that is repeated in other entities.
With respect to system financial in general, Roberto Gerettochief economist of Bank CMF, summarizes iProfessional which product of the instability and stagflation macro of the Argentina, the evolution of stock of loans personal in the country “it has not been favorable”.
“As an example, in February he stock fell by 3.8% compared to 2019, while in March the year-on-year comparison showed a drop of 3.3%, amounting to a total stock of just over $ 400 billion, according to figures from the Bank Central“the expert graphs.
And if you consider the inflation of said periods (around 50% per year), “the change in the stock of loans in real terms it is of a much greater magnitude, “he concludes. Geretto.
Banks charge up to 100% total financial cost on personal loans
As for the interest rates, although the cost of these loans started this year around 70% for the average of the market, for the beginning of April the rate fell to 54%, as a result of the politics monetary expansive of BCRA.
That is, for Geretto, although the offer of credits “can be more attractive via a smaller rate, in order to increase these types of loans among people, the fundamentals of the demand. By this I mean wages real, higher level of exercise, among other aspects, “which are key today due to quarantine.
In the same way, the expert Santiago Rodriguez Lucca, CEO of Bergson, considers that the pre-approved credits of the banks “are to fees quite low, and its approval it is immediate“
Alternatively, add that you can also access the automatic financing of Credit cards at 12 months, “with the first three months with grace period”.
On the side of Gonzalo Chiarullo, CEO of Mahout Capital, ensures that the interest rate of the credits It is high, “although less than what we had been having”.
And it limits that “when not being able circular freely and unable to access branch offices, the banks they rely heavily on their platforms virtual. Furthermore, they have made the use of formal communication channels more flexible, such as e-mail for send documentation backing in order to obtain credit linesboth at the level personal as corporate (loans for payment of assets, for example)”.
Tips for taking out a personal loan
Beyond the ease of accessing the loans personal in banks, different aspects and recommendations must be taken into account to be able to access them in the best possible way and taking into account the cost involved.
To see these details, Geretto shared with iProfessional Some tips not to neglect:
Advantages and disadvantages
The first thing to keep in mind is that loans personal have their advantage and disadvantages. On the positive side, in general, they are loans with a more simplified form of access, with fewer requirements, faster to grant and without real collateral.
The other side of the above is that the interest rate of these it is higher than others creditssuch as compared to a line pledge, “being loans with more associated risk to bad debt and no warranty“says Geretto.
Usually, to access the loans personal the documentation required for a natural person is the receipt of salary or monotax, or the receipt of retirement/pension and the DNI.
“There, the Bank will note the background credit of the applicant, and that the weight of the share of the credit does not exceed 30% of income. For those who are already customers of a Bank, it is possible that they can be accessed through Internet and without presenting any documentation“describes the chief economist at CMF.
Even, as mentioned before, several of the loans personal on-line are already pre-approved and they are managed in a few minutes from the same homebanking of the user.
The appearance of coronavirus modified the way of managing the lines of financing to individuals. Apart from the cases in which they could be immediately accessed via the Internet, some entities allow the documentation to be sent by electronic medium. And if the presence in the bank is necessary, it will be necessary to previously take a turn.
Also, the context caused by the coronavirus “has caused some to relax criteria, and thus some have appeared lines special, generally oriented to SMEs“says Geretto.
Nominal rate vs CFT
When evaluating how much does it cost to finance thus, you should always consider the total financial cost (CFT) and not the annual nominal rate (TNA), since the first represents the true cost for the applicant of the credit, while the second is the rate of interest “pure“who charges the Bank.
“The difference between the two is due to VAT, commissions, and else expenses administrative. As an example, a TNA of 54% can reach 100% of the CFT “, exemplifies Geretto a iProfessional.
In case you decide to get a credit personal, the key is that the flow of money of the income relatives they are projected to have be tolerable to repay the loan.
Additionally, it is important to consider the possibility of cancel these so anticipated, by “high rate of interest associate, except in the case that a evolution of the entry above said percentage. Thus, it is always convenient that said option be present at a reasonable cost, “completes the economist.
Fixed rate vs variable rate
In some lines, there is the option to choose a variable interest rate (TNA), which adjusts to the rate level of the system and the inflation. In case it is a fixed rate, will usually be lower initially.
“Given this fact, and that a drop in fees real by politics monetary expansive which carries out the Bank Central, the best option seems to be the rate variable, at least for a horizon of investment short covering the next few months “, recommends Geretto.-
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