Borrowing next year will be much more expensive than it was in 2022, but particularly if you want to take out a consumer loan, which includes that of the Credit cards.

This, as a consequence of the first adjustment in the usury rate of 2023 and that the Financial Superintendence certified in 43.26 percent effective per year for the modality of consumer and ordinary credit. It increased 1.8 percentage points compared to what was set for December and the highest in the last 23 years.

(Also read: The Issuer’s interest rate reached 12%, the highest since February 2001)

In addition, for the microcredit modality, the surveillance and control entity certified an effective annual rate of 58.8 percent, which will be in force for the next three months (January-March 2023). will have a increase of 3.37 percentage points compared to the previous period.

As is known, usury is the maximum percentage that can be charged directly or indirectly in Colombia, in exchange for a loan of money or for the sale of goods or services in installments, and whoever exceeds that limit incurs the crime of usury and are exposed to a sentence in prison from 32 to 90 monthsin addition to a fine of up to 300 million pesos, in accordance with the law.

The increase in the usury rate has been rising so far this year, although at a faster rate than the interest rates of the Bank of the Republic, which began the process of adjusting its monetary policy in September 2021 with the end of Contain the escalation of inflationtoday at levels of 12.53 percent, according to Dane.

Indeed, while usury has risen 17.64 percentage pointsthe Issuer’s market intervention rate has done so at 10.25 percentage points since October of last year.

(Also read: Icetex has open quotas for subsidized credits: how to sign up?)

The increases in market interest rates have been made for a single purpose: discourage consumption by families and slow down the growth that household indebtedness brings, especially through consumer loans.

And it is that the bank’s consumer portfolio managed to grow at a real annual rate, more than 13 percent, this is without the effect of inflation.

According to figures from the Financial Superintendence, as of October, the system’s consumer portfolio was still growing at a rate of more than 8 percent in real terms, while the total portfolio was growing at 4.7 percent.

Other credits, such as commercial, housing and microcredit rebounded until last October 3.61; 1.99 and 2.09 percent, respectively, growths below those of previous months, as a result of the consecutive interest rate hikesamong other measures.

Hence the policy of tightening the cost of loans via interest rates and also prevent households from failing to meet their obligations in the midst of a slowdown in the economy.

(Also read: The unemployment rate in Colombia in November was 9.5%)

«Households face several sources of potential impact on their disposable income: the persistence of inflation and rising interest rates, with effects on the financial burden, and therefore, leverage,» says the Superfinanciera.

With these new caps on interest rates, next year Colombians You should be even more careful with your spending.especially those made with credit cards, include cash advances with these plastics, since the entities apply the highest interest, in some opportunities, very close to usury.

Until last December 23, the weighted average rate of consumer loans was 27.07 percent effective. However, in overdrafts the entities were already charging a interest of 41.37 percent; in revolving credits it was 34.91 percent; in credit cards for people with income of up to 2 minimum wages of 31.42 percent; and in free investment of 32.89 percent, among other consumer loans, according to the Superfinanciera.

Personal finance experts recommend prudence in card expenses in the face of this coming scenario.

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