June 02, 20 - 4:52 pm - LABS

Credit demand has a record 25.7% drop in April in Brazil

The demand for credit by Brazilians in April had the biggest fall in 12 years of Serasa Experian statistics, a Brazilian credit research firm that offers digital certification, marketing and sales consultancy, among other services. The financing demand indicator decreased 25.7% in April in comparison with the same month of 2019, the sharpest drop in the historical series started in January 2008 by the company that provides information for credit analysis, according to Istoé Dinheiro.

Because of the coronavirus pandemic, Brazilians lost confidence, employment and income, coupled with the paralysis of trade in products considered non-essential. In the annual comparison, it was the third consecutive month of decline in demand for credit. In relation to March, the retraction was 13.5% in April.

Serasa’s assessment is that consumers, due to the environment of uncertainty and loss of income, are less likely to take credit, especially among Brazilians with monthly income below BRL 500, where the reduction in demand was 27,5%.