For mode installment payables, the rate increased from 179.6% to 182.1% per annum
BRASÍLIA – Even after the end of the maximum Selicoor interest average total charged by banks in revolving credit card rose 3.8 percentage points from December to January, the reported Central bank. The rate went from 407.7% to 411.5% annually.
The revolving credit card, together with the overdraft, is an emergency credit method, widely used in times of difficulty.
In the case of installments, still within the credit card, the interest increased from 179.6% to 182.1% per annum. Considering the total interest on the credit card, which takes account of revolving and installment transactions, the rate went from 92.9% to 94.9%.
In April 2017, the rule came into force which obliges banks to transfer, after one month, the debt from the revolving credit card to installments, at lower interest rates. The government’s intention with the new rule was to allow for a rollback of the interest rate for the revolving credit card, as the risk of default, in theory, decreases with migration to the installment plan.
The average interest rate on free credit (which excludes housing, agricultural and BNDES credit) increased from 41.7% annually in December to 43.5% in January, according to the central bank. In the first month of 2022 it was 35.3%.
Among the main free credit lines for individuals, the current account overdraft stands out, the rate of which fluctuated only from 132.1% per annum to 132.0% per annum from December to January. In personal credit, on the other hand, the rate went from 40.9% to 41.7% per annum.
Since 2018, banks have been offering an installment plan for overdue debts. The option applies to debts exceeding R $ 200. In January 2020, the BC began applying a limitation on overdraft interest at 8% per month (151.82% per year).
Data released today by the Central Bank also showed that, for the acquisition of vehicles, interest rates increased from 28.7% annually in December to 29.0% in January.
The average interest rate on total credit, which includes free and restricted transactions (with BNDES savings and resources), went from 30.1% per annum in December to 31.2% per annum in January. In the first month of 2022 it was 25.6%.
The cost of credit indicator (CCI) increased by 0.4 percentage points in January compared to December, to 21.9% on an annual basis. The percentage reflects the volume of interest paid, in reais, by consumers and businesses during the month, considering the entire stock of transactions, divided by the stock itself. In practice, the indicator reflects the average interest rate actually paid by Brazilians on credit transactions contracted in the past and still in progress.
Source: Terra
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