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Have religion It is like having a monetary passport that opens doorways to many alternatives. On the finish of Might this 12 months, The banks had a portfolio steadiness of $506,571 million. Though it’s typically seen as debt, it’s important to have a very good credit score historical past.

To attain this, it’s essential to have credit in your identify and likewise adjust to the obligations concerned. That is why you additionally must rigorously determine which kind of credit score most accurately fits your wants.

Among the many credit score choices that exist, two are quite common, the redemption credit score and the free deposit credit score. To decide on between these two beliefs, it’s essential to know their variables and the variations between them, and to know them, it’s essential to first know the product itself.

It’s a fee credit score geared toward workers or pensioners that’s taken out each month from the payroll or pension allowance. This can be utilized to finance any kind of challenge.

However, a free funding mortgage is a mortgage that permits the borrowed cash for use in line with private or enterprise wants, with out the necessity to justify its vacation spot, which signifies that there isn’t a particular restriction.

The primary variations between these two loans, in line with Diego Palencia, VP of analysis and technique at funding banking Solidus Capital, are that “A payday mortgage has a set assure connected to the borrower’s paycheck, a free deposit mortgage is a multi-use mortgage often with an unsecured assure, which refers to when it is just wanted signature of the borrower. “

The most important distinction between these two forms of credit score is that the fee within the settlement credit score is robotically deducted from the person’s paycheck, which offers extra assurance to the financial institution. In a free deposit, the wage will not be utilized, so much less assure is created in opposition to the financial institution.

The assure that every of those loans provides to the financial institution is a needed variable that generates variations. In a single free deposit, by giving extra ensures to the financial institution, the charges are decrease, in opposition to a free deposit, by which the charges are greater.

Because of this assure, the redemption phrases are often way more comfy and longer. The free deposit possibility has longer fee phrases and stricter phrases. The approval course of can be a variable change, as a result of within the free funding mortgage it’s often slower. However, in a free one this course of is way sooner.

“Relying on the extent, the best choice is the distribution; as a result of free deposit credit score is often at a degree near the utilization fee.”stated Palencia when he was referring to which possibility was higher between these two choices.

However, Andrés Moreno, economist and monetary guide, stated that to determine whether or not to request a free mortgage or a free funding mortgage, it’s needed to take a look at private wants and situations, after which say to it will be important that it will be important. no matter credit score resolution is being made, individuals needs to be cautious about overestimating, “The necessary factor will not be which of the 2 is healthier, however who has the perfect fee and would not get an excessive amount of in debt. “Do not spend greater than 30% of your wage on debt,” he stated.

Moreno defined that when he was selecting credit score, You need to take a look at 4 variables, the price, the curiosity, the time interval and the capital that’s requested.

In the last quarter, the level of business loan applications has recorded a decrease compared to the same period of the previous year. This indicator is calculated through the average monthly growth of the volume of commercial credit applications over three months..

According to the Superfinanciera, between September 2022 and February 2023, a total of 302,045 applications were registeredand in the period corresponding to September 2023 and February 2024, this figure was reduced to 260,029, which translated into a decrease of 3.71%.

In contrast, Commercial mode approval rate has remained above 92% with amounts exceeding $53 billion per month during the study period.

Until February 2024, the demand for business credit had a special presence in the Andean region, especially in Bogotá and Antioquia, with shares of 57.19% and 20.62%, respectively.

The demand for credit, according to the main economic activities that represented 71.07% of the amounts requested in February 2024 under the commercial methodit is seen that the average production remains constant over time.

Financial and insurance activities, as well as wholesale and retail trade, account for the majority of demand for commercial business creditreaching its highest shares in March and January 2023 (47.12% and 36.40%, respectively).

The risk profile, other factors, and cash flow of the debtor have a significant impact on commercial credit approvals in the country. Until February 2024, these rejection reasons represented shares of 47.01%, 29.68%, and 22.49%, respectively. It is important to point out that none of these reasons have exceeded 4% of participation in the total amount requested for commercial credits, that means, on average, the amounts approved represent 96% of the total amount requested.

Some departments, which collected on the last cut-off date agreed amounts on average for a total of $34 billionshowing an adoption rate of 96.62%, higher than the country’s economic activity average of 0.59%.

Financial activities, insurance and manufacturing industries have displayed the levels and amounts allowed higher compared to the other economic sectors studied.