An estimated 60,000 people a year are exposed to “informal” loans

QCOSTARICA – The Costa Rican Microfinance Association (Asociación Costarricense de Microfinanzas) estimates that each year 60,000 people in Costa Rica are at risk of falling victim to informal loans or better known as “gota a gota” loans, which offer payments easy and high interest.

Experts indicate that with the entry into force of the Usury Law (Ley contra la Usura) two years ago, the most affected sectors have been the most vulnerable populations, such as women, people with no credit history and rural dwellers. .

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Mónica Navarro, the association’s representative, pointed out that 12% of microcredit applications are rejected each year, pushing people towards loans that end up leaving them in a more vulnerable situation.

Navarro called on the Legislative Assembly to promote legislation that corrects the regulations that have produced financial exclusion today.

The expert says that in the first six months of 2022 alone, some 204 extortion victims filed complaints with the Organismo de Investigación Judicial (OIJ).

The national household survey of the National Institute of Statistics and Censuses – Encuesta Nacional de Hogares del Instituto Nacional de Estadística y Censos (INEC), confirms that 75% of the rural population would be financially excluded from a traditional banking product , based on his income profile.

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