Consumer credit interest rate
Financial inclusion is a means to improve the welfare of the population through the responsible use of financial products and services offered by financial institutions, economic growth and the reduction of informality.
For example, access to appropriate financial products and services allows people to save their surplus capital safely in the formal financial system for future investments such as education; financing for income-generating activities allows them to accumulate assets and better manage household resources over time; and insurance reinforces the stability of households by increasing their resilience in the face of disasters. In this sense, the use of instruments such as formal savings or insurance reinforces household stability by increasing their resilience to economic shocks.
It also favors companies by allowing them to access new growth opportunities through investment in new technologies and human capital. As in the case of households, the necessary investment or expenditure needs are often not in line with the resources generated, which is why it is important to have access to certain products that allow the generation of liquidity to meet the respective expenses. Therefore, access to quality financial services boosts business productivity and profitability by facilitating payment and collection transactions at a lower cost and with greater efficiency.
Conventional maximum rate
A second moment, from the mid-2000s to the student marches of 2011, is that of debt as an investment in education. This is the story of those who accessed the Corfo credit and the Crédito con Aval del Estado and are the focus of the academic’s research. Many signed abusive agreements trusting in the promise of social mobility. That is, they believed that, as a result of access to higher education, they would be able to get better jobs and salaries.
CHILE IN THE 2000s: CREDIT AS SOCIAL POLICYLorena’s first research on debt was an ethnography of copper miners in 2000. These workers had tripled their access to goods and services from one Census to the next through debt.
In exchange for the money from the conflict termination bonus, the workers signed the end of social security, dental and health benefits; in other words, the social rights that they had historically achieved in the union struggle were lost in these negotiations… In your research you also relate the negotiations of the copper miners and document how the “conflict termination bonus” and the debt began to transform the relations between unions and companies…
Our standards for debt-to-income ratio Once you’ve calculated your DTI ratio, it’s important to understand how lenders review it when considering your application. See the guidelines we use: 35% or less: A good level. Your debt-to-income ratio is at a manageable level You probably have money left over to save or spend after paying your bills. Lenders generally view a lower DTI ratio as a favorable factor. 36% to 49%: Opportunity for improvement You are managing your debt well, but you may want to consider lowering your DTI ratio. This could put you in a better position to handle unexpected expenses. If you are looking to borrow, be aware that lenders may request additional eligibility criteria. 50% or more: Take action. You may have limited funds to save and spend With more than half of your income going to pay off debt, you may not have much money left over to save, spend or handle unexpected expenses. With this DTI ratio, lenders may limit your borrowing options.
In order to fulfill its objectives, the Bank has, among other duties, to regulate the amount of money in circulation and credit in the economy, so that they are sufficient for individuals, companies and institutions to carry out their transactions.
The goal established under this scheme is that annual inflation (measured as the percentage variation of the CPI in a 12-month period) be maintained most of the time at around 3%. It also establishes as a target that inflation should reach 3% in a 24-month horizon.
The main instrument used by the Central Bank of Chile to keep inflation in line with the target is the monetary policy rate (MPR), which is determined at each Monetary Policy Meeting (MPM).
Through different operations, the Bank influences the overnight interbank lending rate, so that it is located around the TPM, which in turn influences the demand and supply of money, all of which has an effect -with certain lags- on prices in the economy.