Half of the loans to pay the Income statement to hide high interest, although 50% of the loans designed to finance the payment of income tax or advance the return are advertised at a Nominal Interest Rate (TIN) 0%, according to an analysis prepared by Kelisto.es.
The study shows that the commissions that apply these loans mean that the real interest that the consumer will have to pay will reach an Annual Equivalent Rate (APR) of up to 51.16%.
The 2016 Renta campaign began on April 5 and will continue until June 30. Until then, taxpayers will submit a total of 19.75 million returns, of which 74.8% will obtain a negative result, with an average return of 750 euros, and a positive 21.14%, which will force each contributor to pay 1,915 euros on average.
In order to pay the IRPF payment or to dispose of the refund in advance, 12 financial entities (30.77% of the total) have loans that finance this type of operations, although three of them did not want to provide information on their TIN and commissions at the close of Kelisto’s analysis because, as they pointed out, they adapt their offers to each type of client.
The entities that do have standardized information charge an interest of 3.33% TIN for financing the IRPF payment and 3.78% for advancing the amount of the refund.
However, all the specific offers for this operation apply opening commissions of between 1% and 3%, which causes the real cost of the operation to be much higher: 11.71% APR in the loans for the payment of IRPF and a 25.43% APR for those destined to advance the return.
The real cost is even higher among those loans that apply an interest of 0% TIN, since, far from offering free financing, these offers may be able to charge an APR higher than 50%, due to the fact that they apply high opening fees, between 2% and 3%, and even some offers also charges study commission.
Thus, the average of these interest-free loans for IRPF has an APR of 11.02% when they are used to pay the Income Tax, and 33.63% when they are used to advance the return “, explains the spokesperson of Personal Finance of Kelisto.es, Estefanía González.
LOANS TO FINANCE THE PAYMENT OF IRPF.
In general, the loans that allow financing the income tax payment charge an average interest of 3.33% TIN. However, all of them apply an opening fee (between 1% and 3% of the amount requested) and, in some cases, these commissions are subject to a minimum in euros, as in the case of Banco Caixa Geral’s offers and Sabadell Bank.
Thus, Kelisto notes that a consumer who had to finance six months the average payment of 1,915 euros that taxpayers with positive declaration will have to make this year an 11.75% APR, which means that it would end up reintegrating the bank 1,976, 03 euros, about 61,03 euros more than the amount initially requested.
Among all the offers available for payment of personal income tax, the cheapest ones taking into account their APR are Deutsche Bank’s Credi-Renta DB (7.19% APR), the Ibercaja Tax Loan (9.09% APR) and the Financing services for the Income of the Banco Popular Group (Banco Popular, Banco Pastor and Oficinadirecta.com), with an APR of 11%.
LOANS TO ADVANCE THE IRPF RETURN.
With regard to the loans to advance the IRPF refund, these products charge an average interest of 3.56% TIN. However, all offers charge opening commission and, as in the case of loans to pay income tax, two of them have a minimum in euros: Banco Caixa Geral and Banco Sabadell.
In this context, a consumer who would like to advance the return of the Treasury (750 euros on average) to be returned within a period of six months, would have to pay an average APR of 25.43%. In this way, you should pay the bank 796.94 euros, which is 46.94 euros more than the amount that the Treasury will enter.
Among all the offers to advance the IRPF refund, the cheapest ones taking into account their APR are the Loan Repayment of Ibercaja (14.93% APR) and the Advance Payment of the Banco Popular Group (Banco Popular, Banco Pastor and Oficinadirecta. com), with an APR of 16.08%.
At the other extreme is Banco Sabadell’s offer, at 0% TIN but with an opening commission of 3%, subject to a minimum of 60 euros (plus a study fee of 1%, with a minimum of 24 euros), which puts its APR at 51.16%.
THE OPTIONS FOR DEFERRING THE PAYMENT OF THE IRPF.
The Tax Agency also offers two alternatives for those who need to postpone the payment of income tax, which is incompatible with each other, such as splitting into two payments and custom splitting
The split in two payments does not charge interest (0% TIN) or expenses and allows to postpone the payment of income tax in two parts: the first (equivalent to 60% of the payment), which will have to be made when the declaration is presented , and the second (the remaining 40%), which must be paid before November 6.
On the other hand, the personalized fractionation does suppose a cost (3.75% TIN) but allows to postpone the payment in more monthly payments. Specifically, the refund formula is negotiated between the taxpayer and the Tax Agency to adapt to their needs.
Of course, to be eligible for this solution, the consumer has to be able to justify that his economic situation forces him to choose this alternative.
KEYS TO CHOOSE A GOOD LOAN.
As keys to choosing a good loan for the 2016 Income Campaign, Kelisto recommends calculating the APR, which takes into account the interest, commissions and expenses, the amount that will be requested and the return period.
Also, remember that all loans for payment or return of income tax have opening fees, which is expressed as a percentage. However, two offers also impose a minimum in euros, Banco Sabadell (60 euros) and Banco Caixa Geral (50 euros), something that penalizes especially those who ask for small amounts.
It should also be borne in mind that the repayment of the loan for the advance of the rent can be paid in a single installment, which will be paid just when the consumer receives the money from the Treasury, and to enjoy the conditions of some loans it is necessary to Be a customer of the bank.
In case the user has his money in a bank that does not offer this type of products, he will have to opt for other financing alternatives, payroll advances or credit cards.