Peru: Consumption loans made significant progress in 2018

11:30 | Lima, Jan. 29.

Consumption loans posted a 13.6% expansion until November 2018 and are expected to have grown 15% last year, the largest rise compared to other types of loans, reporting service Sentinel has informed.

"Consumption loans were favored in 2018 during the World Cup Russia. Besides, borrowers made significant use of their parallel credit card lines," Sentinel Business Director Yanina Caceres said.

Likewise, many debts were purchased last year, thus turning credit card (revolving) debts into financial obligations at fixed and better interest rates.

Credits in the financial system expanded 8.8% until November last year and are estimated to have grown 10% in 2018, driven by increased consumption loans.

According to Caceres, the financial system comprises some 7,100,000 customers, whose debts amount to S/331.618 billion (about US$98.872 billion).

Furthermore, he emphasized that around three million clients paid out their financial liabilities at the appropriate time.

On the other hand, he said only 30% of Peruvians use banking services, which means there is room to increase the sector.

"Retail businesses promote the use of banking services as they open anchor stores in provinces and grant credit cards," he underlined.

Published: 1/29/2019
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