A revolution in loans is about to happen with the approval of the Legal Framework for Loan Guarantees in the National Congress.
This new law promises to bring a series of changes that have the potential to significantly impact the granting of credit in Brazil, potentially leading to a drop in interest rates. But what exactly changes and how will it affect consumers' pockets?
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The Legal Framework for Loan Guarantees brings with it a series of innovations that aim to make the credit environment safer and more efficient in Brazil.
One of the most notable changes is the permission for citizens to offer a property as collateral for more than one loan, as long as they have more than one property. This measure aims to ensure that families do not become homeless if they face financial difficulties.
Previously, when giving a property as collateral for a loan, the amount remaining after paying the debt could not be used for other loans.
With the new regulation, the unused value can be used to guarantee other loans, making the property even more valuable as guarantee.
The new law is not limited to real estate, as it also allows the use of vehicles as collateral for loans. Even if the consumer only owns one car, he can use it as collateral. Furthermore, the process of taking back the car in case of default has been simplified, making it more efficient for creditors.
(Image: Shutterstock/reproduction)
One of the most important elements of the Legal Framework for Guarantees is the authorization for the use of extrajudicial measures in the recovery of assets given as collateral.
This means that, when signing a loan contract, the consumer will be informed about how many consecutive installments they need to stop paying for the asset to be taken.
If this occurs, the financial institution may contact the protest notary, who will notify the consumer of the situation.
Reducing risk for financial institutions, by enabling them to borrow assets more efficiently, has the potential to impact interest rates.
With real estate or cars As collateral, banks can feel safer lending money, which can lead to lower interest rates for consumers.
The ease of taking assets also reduces the cost of the process for creditors, which can be passed on in the form of lower interest rates to borrowers.
While the legislation is not a guarantee that interest rates will automatically fall, it certainly opens up the possibility for them to do so.
The Legal Framework for Guarantees is an initiative aimed at increasing access to credit, offering more guarantee options. With greater credit availability and potentially lower interest rates, consumers, companies and legal entities can benefit from the new lending scenario.
While some concerns about debt are understandable, the changes are intended to facilitate access to credit in a safe and efficient way.
