Mercado Pago Loan: How it Works

I bet you already know Mercado Livre and Mercado Pago.

How does the Mercado Pago loan work?

In general, Mercado Pago loans work in a very easy and straightforward way.

In addition to the ease of use, another factor that draws a lot of attention is the reduced bureaucracy, especially when comparing the service with what is offered by some traditional banks.

Despite this convenience, to access and request the loan, it is necessary to have a Mercado Pago account, making the loan generally more geared towards retailers and sellers who already used the platform to carry out their transactions.

It works like this:

The customer makes the loan request;
After submitting the request, it is analyzed and the customer receives a response within 4 business days;
If the request is approved, the credit is available directly on the Mercado Pago platform;
Remembering that installment payments are also made directly through the platform, ensuring security and convenience for the customer.

Types of loans

To meet the needs of a wide range of customer profiles, Mercado Pago offers three different types of loans. These are:

Credit in Fixed Installments

The customer chooses the number of fixed installments they prefer;
Payment can be made in up to 24 months;
In this option, the loan installments are debited monthly directly from the Mercado Pago balance;
The customer has complete freedom to pay the amount whenever they want;
The amount available to be requested is up to R$ 500 thousand.

Credit by Percentage of Sales

In this model, the customer chooses the percentage of sales they want to pay back;
Sales proceed as normal. What changes is how the amount is discounted. In this option, the percentage is deducted directly from each sale;
The customer is free to pay the loan installments as sales are made. Here, there's no endless worry about installments.
The available amount is the same as the first option: R$ 500 thousand.

Express Money

In this third format, the customer informs the amount he needs;
Payment is made in 7, 14 or 21 days;
If, after the loan payment is completed, the customer's sales level remains constant, they can reapply for the same loan as many times as they want.
Unlike the two previous options, the amount available for this type of loan is up to R$1,000,004.

See? By offering these three loan models, customers can evaluate and understand which model best suits their finances and overall sales.

Who can apply for a Mercado Pago loan?

In addition to being a customer to apply for a Mercado Pago loan, the platform also has some basic requirements that applicants must meet before applying for this line of credit. For example:

Taking into account the last two months, the customer must have reached the target of R$ 100 or more per month on Mercado Livre and/or Mercado Pago: This is important so that an accurate analysis of the seller's history can be made;

Have a good payment history on Mercado Crédito: This requirement is for cases where the seller has requested some credit from the platform;

Being a seller with a green reputation on Mercado Livre: If the applicant makes sales through the platform, having a good reputation is essential when applying for the loan.

Requiring these prerequisites is a way for the platform to better control operational risks.

Where to apply for a Mercado Pago loan?

One of the strengths of this line of credit is how easy it is to apply for. It's faster and less bureaucratic than other loan options on the market. In fact, the entire process is done directly from your phone or computer:

Access the website or open your account through the Mercado Pago/Mercado Livre app;
Just look for the “Mercado Crédito” section if the option is available to you and request it;
Done! Now just wait.

For analysis purposes, the platform may also request the submission of additional documentation for the order to be released.

After completing the order, the request is forwarded for quick analysis by Mercado Pago and your request will be responded to within 4 business days.

What are the interest rates on the loan?

This depends on a case-by-case basis. The rate may vary from user to user, as it is customized according to each user's profile and other characteristics. However, the estimated standard rate should start around 2.99% per month.

Conclusion

Although it is a promising credit line model that tends to gain more traction among sellers and buyers in Brazil, the fact that the value and availability of the loan depend on transactions made on the platform means that this is not a viable option for all users.

In the near future, after the credit model is consolidated, these requirements may become more adaptable, allowing the platform to attract the attention of the general public, not just its customers.

If any of the options catch your eye and you think they could be an interesting path for your business, research the fees and payment methods before closing the deal.

Only after that will you be able to find out whether the chosen line of credit really makes sense for your situation.

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Take the opportunity to read too Credit card loan: how does it work?.

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Nathalia P. Silva 1 de October de 2021