Citibank follows public banks and lowers interest rates.
The most important change will occur in mortgage lending, where the bank will start working with an interest rate of 8,9% per year.
Agency Brazil - Citibank has announced a reduction in interest rates for individual customers on mortgage loans, personal loans, overdraft facilities, and vehicle financing. At Citibank, the reduction will take effect on May 2nd and follows a decision initially adopted by state-owned banks, which forced a decrease in rates at private institutions.
According to Citibank, the most significant change will occur in mortgage lending, where the bank will start working with an annual rate of 8,9%, plus the Reference Rate (TR). The TR is calculated based on "averages of 30-day Certificates of Deposit (CDBs) at fixed rates practiced by commercial banks and adjusted by means of a reduction factor, in order to adapt it to savings contracts and the Housing Finance System," explains the Central Bank.
The bank also informed that the reduced rates will be applied to new vehicle financing, mortgage loans, and personal loans. Only in the case of overdraft facilities will the new rates apply to existing contracts. In all cases, the bank stated that the changes depend on the client's relationship with the bank or on the terms and value of the contract.
The bank did not disclose the rates previously charged, but announced that, in addition to the 8,9% annual rate plus TR for mortgage loans, personal loans will have rates starting at 1,69% per month, overdraft facilities starting at 1,99% per month, and vehicle financing starting at 0,99% per month.
The reduction in rates began at the start of the month with the federal state banks. Yesterday (24), President Dilma Rousseff said that the reduction in bank interest rates in the country will occur progressively and that Brazil needs to have rates compatible with its position in the world. According to Dilma, there is no reason for Brazil to have such high interest rates.