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this fintech gave loans to 400,000 people this year

With the changes in habits that the pandemic brought, fintechs advanced and facilitate access to credit for people and businesses.

The pandemic and the extensive quarantine with movement restrictions and social distancing changed people’s behavior. In the financial field, the changes in habits generated by the health crisis are also verified when managing or requesting a loan with a greater tendency to resort to the virtual modality.

In a scenario of greater financial inclusion, fintechs made progress in this field and facilitate the access to credit of people and businesses.

So on Orange X they indicated that more than 400,000 clients between January and November of this year obtained a loan

In that period, the digital platform granted more than 682,000 loans for a total amount that exceeds $ 17.8 billion, and they estimate to surpass the barrier of $ 20,000 million in December.

The photography of the last three months is even more eloquent, with figures that marked a historical record for the company.

As specified in the company, in that period more than 80,000 loans were delivered for more than $ 2,500 million per month, and they remarked that the most significant thing is that “more than 15,000 people accessed for the first time in their lives a tool that facilitates access to financing “.

In that framework, Nicolas Alsina, head of the credit area at Naranja X commented that “we are convinced that the way to grow is by helping to grow, that is why in these months we have been able to expand the possibilities of more than 400,000, who through our loans were able to improve their lives, expand their business, acquire that asset they wanted so much or fulfill part of their dreams “.

In the company they highlighted that the preference for the digital modality was reflected in that 65% of the operations are carried out through the Naranja X online platform and the Naranja X app, and “are completed entirely online, without face-to-face actions.”

Regarding the payment method, 4 out of 10 customers opted for the 12 installment term, followed by 6, 9 or 18.

And in relation to the participation of the different areas of the country, the data show that the Central Region is ranked first, followed by Buenos Aires and the Pampeana Region, NOA, Patagonia, Cuyo and NEA respectively.

Microcredits are aimed at people who cannot apply for a loan through the banking system

Microcredits for working capital projects

In parallel, Naranja X announced the launch of a line of microcredits for small businesses Productive, which is the segment with the most difficulties in accessing financing in the traditional banking sector.

This line of loans will have an amount of between $ 10,000 and $ 100,000, and they are oriented to the purchase of tools, materials and labor supplies.

These are amortizable loans, with a final rate of 45% and they will have a term of up to 18 months.

In this regard, Alsina explained that at Naranja X “we plan investments to continue deploying digital financial products and services that are part of the company’s ecosystem” because “we want to give opportunities to millions of Argentines who are outside the traditional financial system and access to credit “.

“In this way, and in conjunction with the Ministry of Productive Development, Naranja X improves the conditions of access to credit for MSMEs and people who carry out productive ventures. The National Fund for Productive Development (FONDEP) will allocate to this line of investment productive a total amount of $ 1,000 million.

Commercial loan lines grew 6% in November

Commercial loan lines grew 6% in November

Credit recovery

In a context of greater dynamism in the economy due to the reopening of activities, loans in pesos to the private sector, in real terms and without seasonality, grew for the third consecutive month, “marking the highest record in almost a year and a half,” according to highlighted the last Monetary Report from the Central Bank released this week

The document indicated that the impulse came mainly from commercial lines and, to a lesser extent, from personal and pledge loans.

Lines with commercial destination would have exhibited a monthly growth close to 6% without seasonality, at constant prices, “and if its composition is analyzed by type of debtor, it is evident that the increase” was driven by both types of firms, MSMEs and large companies, “he said.

The monetary entity maintained that the greater dynamism shown by commercial credit was linked, in part, to the Financing Line for Productive Investment (LFIP) to MSMEs “.

In this regard, the report specified the loans granted through the line increased 13% compared to the end of OctoberAs for the destinations of these funds, “around 84% of the total disbursed corresponds to the financing of working capital and the rest to the line that finances investment projects.”

Among the loans associated with consumption, “personal loans would have presented a monthly growth of 1.4% at constant prices, registering 3 consecutive months of positive real variations”.

An analysis of the consultancy LCG detailed that “currently loans represent only 63% of the value of May 2018, before the financial crisis that affected the country “.

However, he remarked that “growth seems to be observed from the expansionary policies for consumption that began to be applied as a result of the PASO; it remains to be seen if these stimuli are maintained in the long term.”

The consulting firm foresees that “on the credit side, in the immediate months a certain rebound could continue to be reflected from the stimuli offered by the government in the framework of the elections (Now 12/18/30 and loans to monotributistas, Procrear)” although he estimated that “it will be somewhat marginal (it already happened in April 2020) and the dynamism will continue to be low”.

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