Just like we have payday loans here in the United States, they are on the rise in Latin America as well. These type of loans are repaid through deductions from the workers’ payroll checks. This gives both the customer and the bank the chance to build a relationship. Therefore, possibly extending more credit to the borrower in the future. This is a great way for Latin America to help their region’s middle class gain access to funds. BMG Bank in Brazil helps consumers do just that. Payroll loans in Brazil have increased by 16.5% in the past year. They have also launched new products such as the BMG credit card which will expand the opportunities for paycheck-deductible loans. Currently the BMG credit card has over 570,000 active accounts and is issued in association with MasterCard.
BMG Bank provides commercial and credit financing as well as investment services. They even provide commercial loans to small businesses and companies. BMG Bank joined forces with Brazil’s biggest bank Itau Unibanco Holding SA. The team’s goal is to lend around $14 million in payroll loans over the next four years. The Vice President and Director of BMG Bank is Marcio Alaor since 2008. He graduated with a degree in business administration and started his career at Grupo BMG in 1977. Within 20 years he climbed his way up in the company to become their Control Executive Director.
So how easy is it to get a loan with BMG? You simply can apply directly through their web site. They will verify your employment and grant you a loan of up to $5,000. It only takes a few business days to process your information. Once approved they will deduct for up to two years from your bi-weekly paychecks until the loan is paid in full.