Consumer Loan Costs Vary Widely, New SERNAC Tool Aims for Clarity
SANTIAGO – Significant discrepancies in interest rates and overall loan costs persist between Chilean financial institutions, even for similar consumer loan requests, according to updated data and a newly revamped tool launched by the national Consumer Service (SERNAC). The findings underscore the critical need for consumers to actively compare offers before committing to financing.
SERNACS analysis confirms that the total cost of a loan can fluctuate substantially depending on the lender, reinforcing the importance of obtaining multiple quotes. The organization’s updated platform, available at www.sernac.cl, is designed to simplify this comparison process and empower consumers to make informed financial decisions. This is especially crucial as household budgets face ongoing economic pressures and access to credit remains a key factor in financial stability.
The platform now features a streamlined interface with just three key filters – loan amount, term, and inclusion of credit insurance - to generate results displaying the estimated installment, interest rate, Equivalent Annual Charge (CAE), and the Cost of Total Credit (CTC), ordered from lowest to highest cost. SERNAC highlights that the displayed figures are reference simulations, and final conditions are subject to each financial institution’s individual credit risk assessment.
SERNAC advises consumers to prioritize comparing the CAE and CTC, as these metrics accurately reflect the true cost of credit, and to always obtain formal quotes and thoroughly review contracts before signing.The organization also recommends evaluating personal payment capacity, avoiding impulsive decisions, and prioritizing financial education to promote economic well-being. “An informed decision can make a big difference in the family budget,” SERNAC emphasized.