The CAT is an extremely important element in choosing a personal loan or credit. The first thing we look for is the option that offers us the most benefits, and one of them is the percentage of the average CAT.
MEXICO.- The CAT is a standardized measure of cost of financingexpressed in annual percentage terms which, for informational and comparative purposes, incorporates all the costs and expenses inherent to the credits granted by the institutions.
This calculator allows you to obtain the CAT for credits with fixed or variable payments, among others | pixels
Total Annual Cost CAT: It is a fairly common term among people who have credit cards or any other type of credit, however although this concept is common, the truth is that there are some doubts on this subject, for this we explain everything you need to know about the CAT bank and how it is calculated.
The CAT is an indicator that serves to to calculate the full cost of credit financingthis means it’s a percentage measure that collects not only the interest rate, but also adds up all the factors you’ll end up paying.
- The CAT is calculated with the components and methodology established by Bank of Mexico in Circular 21/2009.
- To calculate the CAT, the user is required to enter credit information: Credit amount, periodic payments as well as any other additional costs that must be covered and which have not been included in the periodic payments. These data can be obtained from the information provided by the credit granting institutions.
- Check if payments to determine the CAT includes VAT as from 17 November 2009 the CAT must be calculated without considering the VAT on commissions or interests. If the user enters payment amounts with VAT, the resulting CAT will include the tax.
In this link you can find the Banxico calculator to calculate the total annual cost.
This calculator allows you to obtain the CAT for credits with fixed or variable payments, among others:
- personal,
- automotive sector,
- mutual,
- pay book,
- for the purchase of goods,
- of pledge,
- of working capital.
With one of the following periodicities: weekly, biweekly, monthly, bimonthly, quarterly, quarterly, half-yearly, yearly and with a single payment at maturity.
Source: Banxico educates and Money Man
