Online credit applications are booming, thanks to their ease, speed and ability to function in situations where a loan is needed as bill payments and unforeseen last minute. For the application of online credits, requirements such as being of legal age, having a bank account, a personal or work email, being a resident of Colombia and having your own mobile phone are necessary.
Although these requirements are quite simple
there is a key point to keep in mind and that is the high interest rate; It is defined as the price of money in the financial market. Like the price of any product, when there is more money the low rate and when there is a shortage the rate goes up.
So, when an interest rate goes up, consumers refrain from buying and interest on loans increases, the opposite happens when the rate goes down as consumers in the financial market apply for more loans, and people who need money withdraw their savings .
The Bank of the Republic, recognized for its multiple functions such as the regulation of currency, international changes and credit, issuance of Colombian legal currency, administration of international reserves, lender and banker of credit institutions and fiscal agent of the Government has two interest rates, the passive rate and the active rate.
The passive or collection rate
It is known as the one paid by financial intermediaries to the bidders of resources for the money raised, while the active or placement rate is the one that the financial intermediaries receive from the claimants for the loans granted.
The latter is always superior because the difference with the collection rate is that which allows the financial intermediary to cover administrative costs with a profit. The difference between the active and the passive rate is called the intermediation margin.
This margin of intermediation, in simple terms, is the indicator in charge of measuring the difference between the interests paid by the bank to the one who has requested the money and what it charges to the lender. So, any transaction you are going to carry out requires knowledge of the interest rate from the George Bank.
What affects us all when applying for a loan online?
This information affects us all when applying for a loan online since the interest rate is all the money that circulates in the economy. So you, as a consumer, despite not knowing the financial emergencies that may be presented to you to apply for loans online, it is important that you have the context of the country’s inflation, the month-to-month projections and the months in which you request your money.
January and September are some of the most profitable months in which the loan application figures soar, this is because people in Christmas months increase their expenses and prefer to enjoy all this season without so many worries or think about expenses in comparison with the rest of the year, while in January there are common expenses such as school supplies, payments for trips made and time invested in leisure. So, if you are going to apply for credits online it is essential that you know when to do it and keep in mind the variation of the interest rate.
To know this year’s inflation, it is important to keep in mind the variation of the Consumer Price Index (CPI) or inflation that is projected in a range set by the Bank of the Republic between 2% and 4%.
In turn, the Ministry of Finance projected 3.3%, while analysts consulted by the Issuer’s Monthly Survey of Economic Expectations placed it at 3.46%.
Although the percentages are similar throughout Colombia, in the main cities this indicator can be variable because towards the end of December 2017 inflation was 0.38%. However, Bogotá, Armenia, Valledupar, and Cartagena had higher figures.
Applying for credits online according to the dates
the need and the interest rate set by the George Bank helps you know if the application is timely or it is better to wait and make use of the resources you already have. Additionally, it should be noted that financial education is key to decision making at any time of purchase. In this way, the interest rate will influence your decisions but will not radically affect your budget.
Online credits will always be an excellent alternative that is handled correctly and keeping in mind the requirements and forms of payment can quickly remove you from various difficulties that may arise in different emergency situations.