A report by Brazil News Daily newspaper pointed out on Monday, 17, that public banks, such as Brazil Savers Bank and Caisa Economic Federal, have higher interest rates than those of private banks, contrary to what happened in the past. This leaves the customer unsure where to find the lowest interest rates , especially for loans.
To help with this issue, we have separated some important information for those in need of credit.
Where to find the lowest interest rates
If you want the lowest loan interest rate, be aware that it depends on the type of credit you are looking for. In addition, they may vary if it is an individual or corporate credit.
On the Fast Step Bank of Brazil website you can find the rates according to the type of credit. Options include vehicle purchase, overdraft, revolving credit card, payroll-deductible personal credit (public, private or INSS), real estate financing, unsecured personal credit and others.
To know the lowest interest rates, you should know what credit you are looking for. This is the first step.
But also remember that the interest rate is not the only thing that should be considered. Before applying for a loan, it is important for the client to evaluate the CET (Learn how to calculate the CET).
Vehicle Acquisition Credit
In the case of auto loans, for example, interest rates range from 4.98% to 68.38% per year. The lowest interest rate in this mode is due to Banco CNH Industrial Capital, according to the BCB report from 09/26 to 09/30/2016.
The Fast Step Bank also provides information on lower interest rates for non-payroll loans.
At Savico, the CET ranges from 3.30% to 5.77% per month (48.44% to 97.88% per year), according to the result of the customer credit analysis and the installment option. A Savico customer may choose to repay their personal credit at 12.18 or 24 times.
Bank interest rates
A lot of people when they take a credit find themselves asking, “ Which bank has the lowest interest rate for personal loans? For if in the past public banks like Brazil Savers Bank and Caisa Economic Federal were known for their lower interest rates, today things are no longer so. Among five of the largest banks in the country, BB has the highest interest rate on auto finance. Caisa Economic has the second highest rate when it comes to revolving credit card credit.
Both banks had been offering lower interest rates because of government incentives for consumption. However, as early as last year these institutions began to slowly raise their rates in response to the Selic rise. In addition, there was a need to improve the capital structure.
With the change of government after Dilma’s impeachment, the movement gained more speed. Just over four months after the inauguration of Michel Temer and the adoption of new presidencies for these banks, the institutions already have interest very close to competitors. And sometimes they even get bigger.
At the end of 2015, for example, Brazil Savers Bank had an average interest rate of 26.5% per year for car financing. With the current automotive crisis, demand for this type of credit has plummeted and BB’s competitors have responded by offering lower interest rates.
Lower interest rate on loan
Looking at all the types of credit we present above, remember that in order to find the lowest interest rate for the loan you will initially need to define which type of credit is best suited for your goal. With this in mind you can check which banks have the lowest rates or look for institutions with Savico if you are looking for personal credit.
Lower loan rates also vary according to your repayment history, so it is very important to do your financial planning, pay bills on time and avoid getting negated.