The transfer of a loan from one bank to another, called portability, grew almost 100% in 2017 compared to the previous year. According to Medio Bank data, 2.1 million portability were made last year, up 93.7% compared to 2016. The amount moved reached R $ 16.9 billion, an increase of 122.2% .
This year, in data up to May, portability continues to expand. In the five months of 2018, 1.3 million transfers were already made, a 59.5% growth compared to the same period of 2017. The volume reached R $ 990.5 million, up 71% over the period. from January to May last year.
According to the Bank Economic Report, released this month by the Medio Bank, most loans transferred are payroll-deductible loans, which accounted for 99.9% of portability requests and 99.5% of ported value. According to Medio Bank, portability of payroll loans is easier because it is not linked to a car or a house, for example.
According to the Medio Bank, the cumulative amount (R $ 16.9 billion) of payroll-deductible payroll-deductible loans in 2017 corresponded to 10.9% of total concessions of this type (R $ 155 billion). “Despite the significant ported volume, portability can not change the general behavior of the market in relation to rates practiced: the vast majority of payroll operations continue to occur near the maximum allowed in each agreement,” says the Medio Bank.
The maximum loan rate for retirees and pensioners is set by the National Institute of Social Security (INSS). The government also sets maximum rates for federal civil servants. With the reduction of the basic interest rate, Selic, currently at 6.5% per year, these government-defined maximum rates have been reduced.
At the beginning of 2015, the maximum interest rates set by the INSS were 28.9% per year. This rate rose to 32% per year at the end of October 2015, returned to 28.9% per year at the end of March 2017 and fell again to 28% per year in September last year. In those same periods, the ceiling for federal civil servants fell from 34.5% per year to 29.8% per year and 27.6% per year.
“Lowering the benchmark rate has increased the scope for institutions to improve the original terms of the contract as concession fees, usually close to the maximum regulated rates, have fallen marginally over the period,” says the Medio Bank.
How to portability
To make portability, the client needs to get information about their debt. Financial institutions must provide customers within one business day from the date of the request with information regarding their credit operations: contract number; debt balance updated; statement of the evolution of the outstanding balance; modality; annual, nominal and effective interest rate; total and remaining term; payment system; value of each installment, specifying the amount of principal and charges; and date of the last maturity of the operation. If the institution does not provide the information, the ombudsman may be contacted, then Procon and the Medio Bank, if the problem has not been resolved.
Once you have the loan information, the customer can search for better conditions in other institutions. The bank chosen to migrate the debt prepays the outstanding balance of the original transaction. According to the Medio Bank, the costs related to the transfer of funds for the settlement of the operation cannot be passed on to the client.
In the case of credit portability of individuals, the value and term of the new operation may not exceed the outstanding balance and the remaining term of the original operation to be settled.
The original creditor financial institution has up to five days to renegotiate with its client
The purpose is to send the necessary information to the bank proposing the new credit to complete the portability request. If the customer gives up portability, he / she must formally waive with the original creditor institution that will notify the proposing bank of the new credit.
The Medio Bank further advises that before making the portability, in the process of negotiating the transaction with the institution proposing the new credit, it is important that the client request the value of the Total Effective Cost (CET) of the new operation, which is the easiest way. compare the amounts of charges and expenses charged by the institutions.