When requesting a consumer credit , and in general all types of credits, additional expenses are generated that the client must pay for the management of said procedure. It is not only the money that the bank is lending to you, the client must also pay for the logistic and administrative expense that his request generates. That is why it is important that before making the decision to hire this financial product you ask yourself what expenses it involves to request a consumer credit.
What expenses involve applying for a consumer credit?
Consumer loans are loans highly contracted by customers since the money requested in them is freely available by the client, that is, it should not justify what they will spend, as with a mortgage or vehicle credit. And by its nature, the expenses involved in requesting a consumer credit are intrinsically linked to it, so the customer must pay them to access the loan.
Paying said commissions and additional costs allow the management of the process and offer the possibility to the client to receive the approval of his credit. The expenses when requesting a consumer credit are:
- Fiscal stamps and stamps: The stamps and stamps correspond to the taxes that the client must pay to the State for the handling of the consumer credit. Remember that you are receiving money, and this implies taxes what to pay. These taxes are equivalent to a percentage of the amount requested as a loan and are usually 0.8% in the case of consumer loans.
- Notary expenses: All documents involved in the application for a consumer credit must be authorized and notarized, and this implies an additional expense. They are also known as operational expenses and may vary depending on the amount of money, but does not equal a percentage.
- Assets under guarantee: Some consumer loans require goods placed under guarantee of payment. The expenses related to said goods require the payment of taxes on them, which is added to the expenses involved when requesting a consumer credit.
- Insurance: One of the obligatory insurances in all credit is the one of relief, that pays the debt in case the debtor dies. Depending on the entity that issues the credit, there may be other associated insurance that the client may contract at will, which will represent an additional expense to the credit and will be added to the monthly installments in which the loan will be amortized.
Expenses involved in a credit
Waiting for the client to remember all the expenses involved in a credit is somewhat complicated, so everything you have to pay additional is combined in an amount known as Annual Equivalent Charge (CAE), a percentage that indicates the cost of the credit in a period of one year, whatever the term in which the payment of the credit is agreed. The percentage of the CAE is an excellent indicator for the client to compare which bank is more convenient to request a consumer credit.
It should be noted that the expenses incurred in the application for a consumer credit are regulated and controlled by the Superintendence of Banks and Financial Institutions (SBIF), and is established in Law 18.010 on Money Credit Operations and in Chapter 7-1 on Interests and readjustments of the Compilation of Rules of the Superintendence of Banks and Financial Institutions.
The expenses that we incur when requesting a consumer credit are necessary for the management and administration of said product, and considering that the amount obtained can get you out of a financial trouble or allow you to pay what you need, the administrative expenses are quite tolerable and accessible .