Last Wednesday (4), the Copom increased the basic interest rate, the Selic, from 11.75% to 12.75% per year. In view of this, it became much more expensive to make purchases on installments, get a loan, take out financing, use the overdraft limit, and pay the card bill in installments.
In short, the Selic’s upward movements interfere with all interest rates that Brazil practices. That is, from what a bank charges when releasing a loan, to what the investor earns for an application.
In view of this, the higher the Selic rate, the more difficult it is to obtain credit, loans, installments or financing. And this is true for both companies and individuals. The requirements are higher, and when the operation is released, the customer has to pay more. Therefore, check below the impact of Selic in practice.
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Why does the high Selic affect term purchases?
With regard to installments, the high Selic not only influences the purchases of houses and cars, but also the purchase of a notebook, for example. When considering only the increase of one percentage point in the Selic, the difference in the installment of the installment plan does not reach R$ 1 per month, according to Anefac’s calculations. Although it doesn’t seem like much, it is important to point out that this is already the 10th high in a row.
Take as an example the financing of a car of R$ 40 thousand, in 60 installments, at the beginning of 2021. From the successive increases in the Selic, an installment of R$ 974.42 in January 2021, today goes from R$ $1,159.09. Or even a refrigerator worth R$ 1,500, bought in 12 installments of R$ 166.01. Currently, the installment is at R$ 171.92.
On the other hand, a R$ 50 thousand loan, with a payment term of 90 days, had interest of R$ 1,560.97 in January 2021, with the Selic rate at 2%. Now, they will be R$ 2,593.60. According to the Instituto de Economia Gastão Vidigal, of the Commercial Association of São Paulo (ACSP), some of the most sought-after items for retail financing are furniture, white goods (refrigerators, stoves and washing machines) and electronics ( TVs, computers and cell phones).
The movement has the goal of inhibiting consumption. By taking the decision to raise the Selic, the monetary authorities try to avoid passing on the high production costs, now as a result of the Ukrainian War, to the final prices, paid by us.
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