The average interest rate charged to individuals on free credit fell by 0.5 percentage points (pp) in July, compared to June, standing at 51.2% per year. In July 2023, this same rate was at 58.3%. The data is contained in the Monetary and Credit Statistics released this Thursday (29) by the Central Bank (BC).
Free credit is when banks have the autonomy to lend money raised in the market and set the interest rates charged to customers. In the case of companies (legal entities), the average rate charged in the free market by financial institutions was 21.2% per year, a result that represents an increase of 0.3 pp.
Compared to July 2023, when the average rate charged to companies was 23% per year, the result represents a drop of 1.8 pp
Default
The percentage of individuals in default has remained stable since January 2024, with 5.5% of people with debts overdue for more than 90 days. In July 2023, the percentage of defaulters was 6.2%.
In the case of legal entities, 2.9% of companies are in default, a result that represents a drop of 0.2 pp compared to June and 0.4 pp compared to July 2024, when it was 3.2%.
credit card
Revolving credit is the type of credit that offers the highest rates on the market. It is contracted by consumers when they pay less than the full amount of the card bill within 30 days. After this period, financial institutions divide the debt into installments, under more reasonable conditions for the consumer.
According to the BC, the average interest rate charged by credit cards in installments for individuals is 178% per year, a reduction of 4.5 pp compared to the previous month, of 182.5%, and of less 20.3 pp compared to July 2023, when the rate charged was at 198.2%.
In the case of revolving credit, the rate charged in July was 432.3% per year, a result 9 pp below what was charged in the same month last year, 441.3%.
“In January of this year, the law that limits revolving credit interest to 100% of the debt value came into effect, but the measure does not affect the interest rate agreed upon at the time the credit was granted. As it only applies to new financing, there was no impact on the statistical calculation for June,” explained the BC.
The average total interest rate charged by credit cards was 82.8% in July. In June, it was 85.2%, and in July 2023, 101.9%.
Special check
The average interest charged on overdrafts was 127.8% per year in July, a result 3.5 pp lower than that charged in June (131.3%). In July 2023, the average interest charged on overdrafts was 132%.
The average rate charged on personal loans, billed directly from the payroll, has been stable since May, at 23.2% per year, while non-personal loans (personal loans) are at 89.5% per year, an increase of 1.9 pp compared to June.
