Credit card interest in Brazil rises to 399.5% per year in October

The interest rates on the revolving credit card for individuals rose 8.8 percentage points in October, reaching 399.5% per year.

This type of loan cost rose 52.1 percentage points in 2022 alone. It was 347.4% per year at the end of 2021.

The BC (Central Bank) released the data this Monday (Nov. 28).

Here is the full report.

Brazil’s average interest rate rose from 54% in September to 56.6% in October when considering all the types of loans with free resources – those negotiated in the market – for individuals.

It rose 11.6 percentage points in 2022.

The basic rate, the Selic, went from 9.25% in 2021 to 13.75% a year until October this year.

The interest on overdrafts fell 1.8 percentage points in October. It fell to 132.5% per year. Non-consigned personal credit increased from 81.6% to 83.5% per year.

The rates charged on consigned credit for private sector workers rose from 37.5% to 45.6% per year.

The banking spread – the difference between the rate banks pay to raise money and the interest charged to customers – rose from 41.7 percentage points to 44.4 p.p. in credit with free resources to individuals.

CREDIT

The credit balance in Brazil rose from R$5.161 trillion (about US$1 trillion) in September to R$5.215 trillion in October.

The growth was 1%. In the year, the high was 4.4%, while in 12 months, it advanced by 13.2%.

With information from Poder360

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