What’s wrong with this brochure? The front advertises the CrediAMIGO microfinance program run by the Banco do Nordeste, a Brazilian, state-run, development bank. CrediAMIGO is the largest microfinance program in South America in terms of numbers of clients. “Those who want to grow should remember one name: CrediAMIGO.”
The flip side of the brochure gives the details of the program and the interest rate charged on loans.
The fine print shrewdly explains that the incredibly low 1.32% monthly rate advertised will, when calculated on Effective Interest Rate terms (roughly equivalent to APR rates used in the US), result in annualized interest charges of between 33% and 62% (not taking into account fees charged for opening accounts not mentioned here but only on the CrediAMIGO website “Products Page”).
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