If I ask for a loan, should I do it in dollars or soles?

at the gates of the school campaign and start of school and university classesmany Peruvian families have decided to request a loan to one banking entity to pay their debts. Along the way, many doubts arise about whether to request it in Suns or in Dollarswhere to do this loan and we always look for recommendations for avoid overpaying. Based on specialists in the subject we will give you some tips and suggestions when taking care of your finance.

Should you ask for a loan in soles or dollars?

The economist Javier Zúñiga, General Manager of Asesoría y Negocios Financieros SA (ASFINSA) assures that for temporary reasons all the Central Banks worldwide have raised their referral rates as an alternative to reducing levels of inflation. Therefore, he recommends that we have to ask for a loan according to our income. if we win in Sunsthe credit that we will request will be in soles and if we generate income in Dollars, the sensible thing to do would be to ask for it in this currency. Do not risk it because otherwise there would be a greater probability of getting into debt for years.

What to take into account before requesting a loan?

Once we decide on the type of currency, the specialist points out that before asking for a credit we must look at each interest rate of the credit institutions those of us who are inclined to ask for that support on the page of the Superintendency of Banking, Insurance and AFP (SBS).

• Evaluate your financial status, monthly or annual profit and loss statement to obtain the most comfortable interest rate for your budget.
• Ask the institution, be it bank either credit boxwhat rate it offers and if it is the most appropriate for your financial situation.
• Decide what type of credit we want to request and if it is a short-term one, there would be a tendency to find it with a lower rate.

If you decide at some point to obtain that credit in dollars, you should analyze the behavior of the dollar and if the exchange rate has an upward trend. The interests of the loans in dollars can usually be lower compared to the rates of the soles, but this will depend on the financial institution. Finally, do not forget to carefully evaluate the conditions of your credit agreement. There is no exact answer on what type of currency is best for you, if it is not based on your preferences and personal finances.