The Financial Superintendency of Colombia (SFC) announced on March 31 the new bank interest rate certificationswhich will begin to govern this April 1.
Faced with this new announcement, the Financial Superintendency was in charge of explaining the characteristics and tasks of these new rates, as well as their uses and disuses.
(As of January, 10 of the 28 banks had a balance in the red).
What is the current bank interest rate?
As explained by the entity, the current bank interest rate (IBC) is a reference of the average of the interest rates that financial institutionss (banks, financial corporations, financing companies, higher-level cooperative organizations, special official institutions, and financial cooperatives) when they grant a loan and that report to the Superfinanciera during a determined period.
Can entities agree on a different rate than the one certified by the Superfinanciera?
The IBC certified by the Superfinanciera is a reference for each of the credit modalities, so the entities of the financial system can apply a different rate, but in no case exceed the level of usury defined in the Penal Code (which exceeds half of the IBC).
(Banrep rate hike: why the effects are being felt so far).
What types of credit does the IBC apply to?
The National Government created new credit modalities aimed at financing small-scale productive activities in the country, whose previously certified rates will take effect from April 1, 2023:
– Productive credit of greater amount.
– Rural productive credit.
– Urban productive credit.
– Rural productive popular credit.
– Urban productive popular credit.
Similarly, the Superfinanciera also certifies the IBC on a monthly basis for credits of consumption and Ordinarywhich are aimed at costing the development of economic activities on a larger scale than companies and peopleas well as people’s consumption activities (free investment, payroll, credits, educational, vehicle credits, credit card and revolving credits).
(The new interest certificates announced by Superfinanciera).
Likewise, the entity makes annual certification of the IBC low-amount consumer credit, which is aimed at individuals who have not had a prior link to the financial system and who require resources on a smaller scale to finance their private activity and finances up to six current legal monthly minimum wages (smmlv).
Does the Superfinanciera set the usury rate?
The entity assured that these usury rates were established by the National Government, explained in Article 305 of the Criminal Code, which establishes that “whoever receives or collects, directly or indirectly, in exchange for a loan of money or for the sale of goods or services in term, profit or advantage one and a half times the current bank interest that the banks are charging for the corresponding periods”.
If I currently have a microcredit in an amount and conditions similar to the new credit modalities, are the conditions changed?
The loans that have been granted and disbursed by the entities supervised by the Superfinanciera in the microcredit modality until March 31, 2023 will be governed until the depletion of the balance by the current bank interest rate certified for said credit modality by the entity .
(Profits of banks in the country fell 32% during January).
Financial institutions that will offer this new class of credits
According to the entity, these new credit modalities may be offered by credit institutions with the supervision of the Superfinanciera, that is, banks, financial corporations, financing companies, higher grade cooperative organizations, special official institutions and financial cooperatives.
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