El Salvador: Banks raise interest rates for credit

©image: Cristian Santinon

Scotiabank has raised the interest rates between 0.25 and 2 percent for loans. Scotiabank sales and services director, Jose Eduardo Angulo Milla, indicated that in order to not affect clients' budget, the amount for monthly loan payments has not been modified due to the interest rate adjustment, however he reported that the "non modification of the quota generates a portion of the capital that will be accumulated when the credit term expires.

A source from Agricultural Bank confirmed that the increase in the credit interest rates will happen soon, but he did not give a date. He said that it will increase at least one percentage point.

Source: elsalvador.com

More on this topic

State Bank Charges Same Interest as Private

January 2012

Nicaraguan employers are complaining about the high interest rates charged on loans by the Banco de Fomento a la Producción (Bank for Development of Production).

Although the volume of credit to productive activities is generally larger, interest charges remain high: between 10 and 12%.

Housing loans continue to be high in Nicaragua

February 2009

Banks are seeking funds to ensure financing for the housing sector with better interest rates.

EL NUEVO DIARIO.com.ni reports on its website: "Luis Rivas, General Manager of the Production Bank (Banpro), said that the funds to finance home purchases are generally intermediate, because there are no long term deposits in the country, and interest rates offered to the final consumer depend on those set by the providers of the funds.

Interest in El Salvador continue to rise

January 2009

Despite the measures adopted by the Executive to guarantee liquidity, the price of money continued to rise in December.

Elsalvador.com reports: "During the last of quarter of 2008 the interest rate for one year loans increase by one point to 9.58%, according to figures by the Central Reserve Bank (BCR), while for loans for more than a year, it grew 0.65%, to 10.46%.

Guatemala Lowers Lending Rates

April 2011

Banks are offering rates of up to 7.5% for mortgage loans, both consumer and corporate.

Mauricio Alvarez, manager of the Banco de los Trabajadores (Bantrab) noted that low interest rates abroad has meant that much "capital is returning to the country because the rates are better."