Credit card interest reaches 414.3% per annum
Credit card and the overdraft interest rates have risen the most to household, reaching 414.3% and 263.7% per annum, respectively. 
Interest rates continued to rise in September, as the Central Bank (BC) has disclosed today (Oct. 27). For individuals, the average interest rate rose 1.1 percentage points from August to September, when it stood at 62.3% per annum. Companies paid 0.6 percentage point more, with a 29.3% rate per annum.
The household delinquency—nonperforming loans in arrears of more than 90 days—rose 0.1 percentage point to 5.7%. For companies, the deliquency rate fell 0.1 percentage point to 4.1%.
Credit card and overdraft interest rates have risen the most to household, reaching 414.3% and 263.7% per annum, respectively. The overdraft rate increased 10.5 percentage points, and the revolving credit card rate rose 10.8 percentage points from August to September.
For car buying, the rate rose 0.8 percentage points to 25.6% per annum. The rate of payroll loans, repaid through deductions from workers' salary, fell 0.2 percentage points to 27.6% per annum.
These figures are for nonearmarked credit operations, in which banks are free to use the money raised in the market and set the interest rates.
For the earmarked credit operations—loans regulated the government, channeled basically to housing, rural, and infrastructure sectors—the average interest rate fell 0.1 percentage point to individuals (9.8% annually) and 0,8 percentage points for companies (9.7% annually). The earmarked credit delinquency rate remained stable for both companies (0.7%) and individuals (1.9%).
The total balance of credit reached $807.8 billion, up 0.8% in the month, and up 9.1% for the 12-month period. The nonearmarked credit operations balance reached $411 billion and the earmarked credit operations stood at $396.5 billion.
Translated by Amarílis Anchieta
Fonte: Credit card interest reaches 414.3% per annum
