In this month, the C6 Bank inaugurated the Home Equity modality, a credit model still little known by Brazilians, but which grew a lot in the post-pandemic period. Differentiating itself from real estate credit, in this model, the property serves as guarantee and the resources can be used for any purpose. Check now for more information about the launch of the new credit modality, the C6 Bank's Home Equity!
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According to Abecip (Brazilian Association of Real Estate Credit and Savings Entities), the number of loans from this forms made to individuals last year increased by 32% compared to 2020, jumping from BRL 4.1 billion to BRL 5.4 billion.
The term “Home equity” is of English origin and is used to classify a type of loan that makes use of a property as collateral. However, the model was adopted with the same name here in Brazil, since it is much more common in European countries and in the United States.
This type of credit is one of the cheapest on the market today. It works like this: the individual puts his assets (property paid off in his name) as collateral for the institution and, in addition to obtaining greater value, is guaranteed the lowest interest rates.
Thus, this credit option can be used for various purposes, such as, for example, provide working capital for a company, buy or renovate a property, open a business and pay off debts.
This method in Brazil has only started to gain space in recent times, as it is cheaper and has a longer term than the traditional loan. According to Abecip, in Brazil, the Home Equity portfolio currently exceeds 14 billion reais.
In addition, this credit model with real estate guarantee can be paid in up to 240 installments, and its rates are even better than payroll loans (depending on the customer's profile).
C6 Bank offers loans of up to 60% of the value of the used property. Thus, if this amount is not paid, at least half of the loan is conditional on the payment of this debt. Therefore, even if the property is financed, it can be used as collateral.
