C6 Bank is making its debut in the home equity segment, a type of credit in which property is pledged as collateral and the funds can be used for any purpose. Check!
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C6 Bank is making its debut this month in the home equity segment, a lending modality still little known to Brazilians, but which has seen strong post-pandemic growth. Unlike real estate credit, in home equity, the property is given as collateral and the resources can be used for any purpose.
According to the Brazilian Association of Real Estate Credit and Savings Entities (Abecip), the volume of loans to individuals in this modality increased by 32% in 2021 compared to the previous year, from R 4.1 billion $ to R$5.4 billion. In number of contracts, the increase is 36%.
About the new C6 Bank
Popular in the United States, home equity has recently started gaining traction in Brazil because it is cheaper and has a longer term than traditional personal loans. Currently, the real estate portfolio in Brazil already exceeds 14 billion reais, according to Abecip. Loans with real estate guarantees can be repaid for up to 240 months at even better rates than payday loans, depending on the customer’s profile.
The loan limit offered by C6 Bank is 60% of the value of the property. If it is not repaid, at least half of the loan is conditional on the payment of this debt. This means that even a property that is still financed can be given as collateral.
For now, the new C6 Bank product is available on the app for a group of 200,000 customers and will be extended in the second half of the year to a broader base of individuals. Credit must be requested directly through the app and also through the bank’s website.
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