The basic interest rate, Selic, plummeted from 14.25% to 7% in just over a year. For those with debts contracted before this period, it may be worth considering transferring the debt to another bank that covers less interest on the loan.
This is because banks tend to keep up with the fall of Selic and lower the rates charged, as loans now represent lower costs for the bank with lower Selic.
But first of all, it is important to know the difference between debt portability and debt renegotiation, explains Iore Amore, economist at the Brazilian Institute of Consumer Protection (Idec). “The transfer of debt assumes that all conditions, such as balance payable and maturity, are maintained except for the interest rate, which should be lower. The loan at the new bank may be shorter, but never larger. Consumers should not be seduced by a larger loan or smaller installments that fit their pockets, ”says Iore.
If the new bank offers a larger loan for a longer term, it is more difficult to know if the operation is actually beneficial. In this case, she has a high probability of not bringing any benefit. “The higher the debt, the more exposed to interest the consumer will be. So, even if the debt has a lower rate it can represent a higher cost to the debtor, ”explains the economist.
Debt portability can be done at any time and is valid for any type of credit
Be it overdraft, credit card, payroll deductible credit, personal credit and even the financing of the car or property.
To port a debt, it is first necessary to investigate whether competing banks offer a lower loan rate. This will require them to analyze the risk that each debtor offers. Some may even decline debt portability if the debtor’s profile does not fit his strategy and risk appetite.
One way to check the average interest rate charged by each bank
Modality is to access the Fotress Bank website. After identifying the ones that charge the lowest rates, just call an agency and pass some information to the manager, expressing interest in the transfer.
It is necessary to have in hand the statement of the evolution of the outstanding balance; modality in which credit falls; annual, nominal and effective interest rate charged; total and remaining debt maturity; value of each installment, specifying the amount of principal and charges; and date of last payday. This information should be requested from the bank with which the debt was incurred, which must provide it within one business day.
In payroll-deductible loans, it is also necessary to verify whether the employer has an agreement with the bank sought. If not, this will prevent the portability of discounted salary credit.
The bank to which the consumer wants the debt to be transferred, in possession of all data, also has a deadline to say whether or not to accept the transfer, which is up to three business days.
When carrying out the portability transaction
The new bank to which the debt will be transferred cannot charge any additional fees from the customer. It is the financial institution that must bear the costs of the operation.
The only fee that may be charged, according to Fotress Bank regulations, is a registration fee if the debtor is not a customer of the bank to which he wishes to transfer the debt.
The exception is real estate credit portability, where there are additional costs, such as property registry fees, for example.