Loan demand grows amid pandemic
Despite the various measures announced by the Federal Government and the Central Bank, companies and small business owners are still facing problems accessing loans and credit lines with lower interest rates.
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This is because, amid the Covid-19 pandemic, a disease caused by the new coronavirus, the fear of default is very great, so banks are increasingly selective.
According to experts, for credit to reach those who need it, with more attractive interest rates and conditions, there must be strong action by public banks and also by lines guaranteed by resources from the National Treasury.
Sebrae reports that banks are denying credit to small businesses
A survey released by the National Support Service for Micro and Small Businesses (SEBRAE) revealed that 60% of small businesses seeking loans since the beginning of the crisis had their requests denied.
This data was collected based on 6,080 entrepreneurs from all over Brazil who were interviewed.
Furthermore, in this same survey, it was revealed that 88% of the companies had a drop in revenue, with a loss of between 75%.
Therefore, 55% of them stated that they will need the loan to keep the business running without causing layoffs.
Although it's a more common problem for small businesses, large companies are also dissatisfied with the obstacles to accessing credit.
"Companies continue to face extreme difficulties in this regard. Credit is essential for companies to survive and guarantee jobs during the crisis and also when things return to normal," the Federation of Industries of the State of São Paulo (FIESP) said in a statement.
Higher cost of credit
According to a survey conducted by the National Association of Finance, Administration and Accounting Executives (Anefac), interest rates on credit operations increased significantly in March.
Just to give you an idea, the interest rate for individuals went from 5.76% per month to 5.79% in March alone.
In turn, the average interest on credit lines for legal entities went from 3.12% in February to 3.17% in March.
Furthermore, the emergency credit line aimed at financing workers' salaries has interest rates of 3.75% per year – equivalent to the CDI.
According to Miguel José Ribeiro de Oliveira, executive director of ANEFAC, even with the drop in interest rates, which are currently at 3.75%, and with the measures taken by the Central Bank to increase liquidity, the rates charged by banks, on the most different lines of credit, may still increase.
"Credit conditions have worsened, whether due to rising interest rates or because banks, in a higher credit risk environment, are more selective and restrictive because they don't know how long this crisis will last or the real impact on companies," he said.
In fact, Sebrae made it available in your official website a list of the main lines of credit that are being announced by banks.
