Whoever lends money in June above The annual effective rate of 30.84 percent will incur the crime of usury.
For June, the Financial Superintendence of Colombia certified that this rate will be 30.84 percent, which represents a drop of 0.69 points compared to what was in effect in May, which was 31.53 percent.
Although rates have dropped, they are still high for borrowing.
Photo:EL TIEMPO Archive
This is the lowest usury rate recorded in Colombia since June 2011 and is in line with the reduction in interest rates of the Bank of the Republic, which are already at 11.75 percent.
It must be remembered that the Issuer put an end to the rate hike cycle in December 2023 with the aim of boosting credit dynamics and the recovery process of the economy for 2024.
What about purchases?
The usury rate It is the maximum interest that a financial institution can charge its clients for consumer and ordinary credit. Therefore, banks are now expected to lower rates on their financial products, such as credit cards.
In this way, the purchases people make will be less expensive, which could help reactivate consumption.
The usury rate has remained below 30 percent for several months.
Photo:AFP-Archive EL TIEMPO
However, people should know that the rates applied by financial establishments for the use of so-called plastic money are, in general, one of the highest, often close to the maximum allowed by the authority (usury rate), which has just been certified.
For this reason, experts recommend using credit cards as an investment tool and not as an expense, that is, making purchases that will give a profit in the short or medium term, and not just represent an interest payment.
