Speaking in overdraft, financial advisors are unanimous in stating: avoid recourse to this modality. Historically, the interest charged by financial institutions to use this loan is high. However, with the basic interest rate (Selic) at 14.25% per annum and default increasing, overdraft interest rates are astronomical.
According to the Central Bank Credit Note released on Wednesday (08/26), the average rate charged by financial institutions rose to 247% per year in July, much higher than at the beginning of the year (201% pa). The defaults among those who hired the overdraft service also rose to 15%.
How to get away from the overdraft interest?
For those in need of cash, payday loans are the best options because they charge lower interest rates. According to the Central Bank report, the average rate charged for these loans stands at 27.8% per year in July. In the consigned form, the loan installments are already deducted from the worker’s payroll, in the case of public servants, or from retirement. As a basis for comparison, interest rates charged on non-earmarked loans are higher: 113.8% pa in July.
Another option for those who are in need of money is to look for loans online, the modality that is growing in Brazil. Viola has compared four companies that provide this service, see:
Read more: Know the Pros and Cons of Hiring an Online Personal Loan
Monthly interest rate: 1.9% to 5% *
– Useful website, with interest simulator;
– It makes explicit that the interest rate is higher, since it incorporates other cartoons;
– The whole process is online.
– Only loan from a financial institution. It is linked to Banco AndBank (Brasil) SA
Monthly interest rate: 2.4% to 3.8% *
– Simulator shows details about installments and interest charged by the institution;
– It does not make it clear if it is linked to some financial institution;
– You need to print forms and scan them later to send.
Good for credit
Monthly interest rate: From 8% *
– Suggest loan options from various institutions.
– To search for loan options you need to fill in several personal details;
– Finalization of the loan must be made in person at the chosen institution.
* For real estate and vehicle financing rates are from 1.5%
Monthly interest rate: 15.8%
– If the contract is closed until 3pm, the money is deposited on the same day;
– The entire process is done online.
– It charges the highest interest rate among the four companies;
– Credit limit of up to R $ 2,500;