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,โข even โขfor similar consumer loan โrequests, according to updated data and a newly revamped tool launched by the national Consumer Service (SERNAC). The findings underscore โฃthe critical need for consumers to actively compare offers before โcommitting to financing.
SERNACS analysis confirmsโ that the total costโ of a loan can fluctuate substantiallyโค depending on the lender, โreinforcing the importance of obtaining multiple quotes. โขThe organization’s updated platform, available โat www.sernac.cl, is designed to simplify this comparison process and empower consumers to โmake informed financial decisions. This is especially crucial as householdโ budgets face โongoing economic pressures and access to credit remains a key factor in financial stability.
The platform โnow โขfeatures a streamlined interface with just three key โฃfilters – loan amount, term, and inclusion of โcreditโ insurance -โ toโ generate results displaying โขthe estimated installment, interestโ rate, โEquivalent Annual Charge (CAE), โand the Costโ of โTotal Credit (CTC), ordered from lowest to highest โcost. SERNACโ highlights that the displayed figures are reference simulations, and final conditions are subject to each financial institution’s individual credit risk assessment.
SERNAC advises โคconsumers to prioritize comparingโค the CAE and CTC, as these metrics accurately reflect the true cost of credit, and to always obtain formal quotes and thoroughly review contractsโค before signing.The organization โขalso recommends evaluating personalโฃ payment capacity, avoiding โimpulsiveโ decisions, and prioritizing financial education to promote economic well-being.โฃ “An informed decision can make a big difference in the family budget,” โฃSERNAC emphasized.