Sernac Launches Updated Tool to Help Chileans Compare Consumer Loan Costs
Santiago, Chile – As part of Financial Education Month, Chile’s National Consumer Service (Sernac) has released an updated digital tool designed to empower consumers to compare consumer credit options from various financial institutions. The platform aims to increase clarity and informed decision-making before applying for loans, perhaps saving borrowers significant amounts of money.
The Sernac comparator provides simulations detailing key loan indicators, including monthly payment amounts, interest rates, the Equivalent Annual Charge (CAE), and the Total Cost of Credit (CTC). this allows individuals to assess which loan best aligns with their financial capabilities before committing to a debt.
According to Sernac data, for a $1 million credit repaid over 12 months without lien insurance, the Total Cost of credit can vary between a minimum of $1,094,256 and a maximum of $1,226,978 - a difference of $132,722.For a larger $3 million loan with a 48-month repayment term, also without lien insurance, consumers could potentially pay up to $5,321,307.
To utilize the comparator, users can visit the Sernac website (https://www.sernac.cl/portal/619/w3-article-84607.html) and follow these three steps:
* Choose the desired credit amount.
* Select the number of installments.
* Indicate whether credit life insurance – financial protection covering debt in the event of death or total and permanent disability – is desired.
Sernac emphasizes that the simulations are referential, with the final cost determined by the lending bank. The tool is updated monthly with data directly provided by financial entities. The institution also strongly advises consumers to only apply for credit thru formal, regulated institutions to avoid potential criminal and extortion practices.
