Do you want to take out a loan? Here’s what interest rates will be in effect in Ecuador in January 2024 | Reports | News

The benchmark active interest rate for corporate productive loans, effective January 1, 2024, has increased from the January 2023 rate as set by the Monetary and Financial Policy and Regulatory Council (JPRF).

It came from from 9.29% to 10.14%. The last one is active for active transactions, according to data published by the Central Bank of Ecuador.

The organization points out that lending to productive businesses has also increased. The interest rate increased from From 10.36% in January 2023 to 11.03% in January 2024..

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At the same time, other segments decreased by a minimal percentage.

According to JPRF Resolution 603-2020-F, the weeks from November 23, 2023 through December 20, 2023, covering 355 financial institutions, are taken into account for the calculation of effective benchmark interest rates for 2024.

Here’s how interest rates in January 2023 compared to January 2024.

In November 2023, the total loan portfolio reached US$42,129 million, the latest figure available in the DataLab system of the Association of Private Banks of Ecuador.

Productive credit (difference between January 2023 and January 2024)

  • Corporate productivity increased from 9.29% to 10.14%.
  • Business productivity increased from 10.36% to 11.03%.
  • Productive SMEs decreased from 11.23% to 11.09%.


Three categories of microloans have been reduced.

  • Retail microcredit increased from 28.23% to 20.00%.
  • Simple accumulation decreased from 24.89% to 20.51%.
  • Expanded accumulation decreased from 22.55% to 20.09%.

Consumer loan

  • It decreased by at least 0.54%, that is, from 16.77% it rose to 16.23%.

Educational loan

  • The educational level increased from 9.50% to 8.84%.
  • Social and educational from 7.50% to 5.49%.

Housing loan

  • Housing of public interest remains at 4.99%.
  • Social housing fell from 4.99% to 4.98%.

real estate loan

  • It decreased from 10.40% to 9.94%.

State investment loan

  • It decreased from 9.33% to 8.11%.

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This is the interest rate on term deposits for January 2024.

The interest rate on fixed deposits for January 2024 is 7.74%, as against 6.65% fixed for the same month of the previous year.

Since 2019, there has been an increase in the amount that banks pay on time deposits, which increased from $11,910.54 million in September 2019 to $19,713.10 million in the same month of 2023.

This is due to the country’s inability to obtain cheap financing abroad due to rising country risk, especially after former President Guillermo Lasso announced the death of the cross in May last year.

Thus, financial institutions believe that asking for money from an international bank is the same as receiving it from the time deposits of their domestic clients.

According to DataLab, the total amount of funds placed for a certain period until October 2023 in private banks amounted to $19,970.09 million. The money was divided into the following segments:

  • From 1 to 30 days: $4,327.26 million.
  • From 31 to 90 days: $5,778.76 million.
  • 91 to 180 days: $4,957.97 million.
  • From 181 to 360 days: $4,280.47 million.

Meanwhile, in cooperatives, time deposits reached US$14,479.79 million, totaling US$34,469.88 million in term funds deposited between cooperatives and private banks until October 2023. (HEY)

Reference rates January 2023 (annual %) January 2024 (annual %)
Duration 30-60 days 5.12 6.27
Duration 61-90 days 5.88 7.37
Duration 91-120 days 6.30 7.35
Duration 121-180 days 6.63 7.94
Duration 181-360 days 7.03 8.04
Term 361 or more 8.46 9.33

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