A two-month mini-credit costs 128 times more than a consumer loan

Asufin warns that the new mini credit a two-month period with a way to do that, although it’s closer to a personal loanhas an average APR of 838%, which is 46 times the cost of credit cards and 128 times the average for consumer loans.

it is reflected by III Barometer Asufinwhich confirms that the mini-credit is in progress One of the most expensive products on the financing marketWith an average APR price of 3,350% (which includes all operating expenses), slightly less than 3,436% of the 2021 edition due to the fact that Credo 24 has ceased to operate in Spain.

Average duration of mini-credits There is an increase of about 10 days in a yearTo an average of 46.7 days, while the minimum tenure offered by the sector average has increased to 15 days, as compared to 6 days a year ago, due to the extension of terms of operators who sell in installments in only 60-62 days, When in 2021 it was not more than 30 days.

The maximum amount shown by the sector average is 827 euros, 57 euros more than in 2021, and five operators already offer mini-credits of more than 1,000 euros.

Asufin highlights that, as a novelty, a new term of two months (60 to 62 days) has emerged. Also, although most mini-credits require the principal and interest to be repaid upon maturity of the loan, MoneyMan allows the two-month loan to be repaid in two installments.

They warn of Fiesta Credito, Moneyman and Vivus

In this sense, Asufin cautions that the two-month mini-credits, which are close to traditional loan modalities, remain “too expensive”, because of the average APR (Fiesta Credit) of the three operators offering the new product. , Moneyman) and Vivus) at 838%, which is 46 times more expensive than credit cards (18.2%) and 128 times more than the average consumer loan at 6.55%.

it means that ask 300 euros To repay in two months through mini credit72.80 euros owed in interest compared to 2.16 euros of a credit card.

For this reason, Asufin warns that it is “a product of significant risk to consumers”, both because of its high interest rate and because it is specifically aimed at a consumer profile facing economic difficulties. and does not obtain financing through traditional channels. , even for those who have filed defaults in financial credit institutions.

Similarly, the Association of Financial Users has focused on: Super-reduced term mini-credits, In the return period of 7 days for 50 euro operations, you have found a Average APR that exceeds 70,300%Whereas the APR for one-day mini-credits (designed for payroll advances) can cost up to 17 points.

Asufin also warned that the commercialization of mini-credits is focusing on middlemen, which “creates more ambiguity for investors, in products that are not already very transparent.”

Furthermore, he pointed out that the rise of third-party websites such as Money24, Crezu or MiniCreditto24 suggests that the operations are carried out by companies domiciled outside Spain, resulting in a weakness in their control.

“With increasing rates in the making, the risk that these products extend their marketing to groups excluded from other financing channels and this is more pronounced with a factor to be monitored,” Asufin explained.