The chainsaw arrives at Cuota Simple: what will happen from January

The financing program Simple Feewhich has been a popular option for many Argentines, is about to undergo significant changes starting in January 2025. This program, which was implemented by the Government to replace the Ahora 12, has allowed consumers to make purchases in installments without interest, facilitating access to goods and services.

However, at the end of the month, the program Simple Fee It will be extended for six more months, but with important modifications that will affect users and businesses. One of the most notable changes is the elimination of the option to pay in 12 installments.

Starting in January, consumers will only be able to opt for 3 and 6 installments, returning to the original scheme of the program. This decision was made in a context in which consumption is slowly reactivating, and the Government seeks to promote competition between the different financial entities and private agreements for the provision of financing.

Another significant change is that only small and medium-sized businesses (SMEs) will be able to access the Cuota Simple program. Until now, all businesses, regardless of their size, could offer this financing option.

The chainsaw arrives at Cuota Simple: what will happen from January

However, starting January 1, only SMEs will be able to use Simple Feewhich will leave out many large businesses. The annual interest rate of the program will also increase. Currently, the rate is 40%, but starting in 2025, it is expected to rise to approximately 50%.

This rate will not be fixed, despite the banks’ request, and will be tied to another rate that will not be the monetary policy rate. This increase in the interest rate seeks to balance the economic viability of the program, since it is currently not profitable for banks.

The chainsaw arrives at Cuota Simple: what will happen from January

Impact

These changes in the program Simple Fee will have a significant impact on both consumers and businesses. For consumers, the elimination of the 12-installment option and the increase in the interest rate will mean higher costs when financing their purchases.

On the other hand, SMEs will continue to have access to this financing tool, which will allow them to continue offering payment options in installments to their clients. In inland towns, where SMEs predominate, Cuota Simple continues to be an essential tool to offer financing to consumers.

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