One of the financial problems that is part of the country’s economy in many regions, despite the fact that it is not well regarded in various sectors and by the authorities in the matter, is the modality of ‘drop by drop’ credits or informal lenders, to which thousands of Colombians turn every day.
This type of unregulated financing is characterized by its rapid availability and its extremely rigorous and costly conditions, which often border on usury, generating that the country falls into a cycle of unconventional poverty.
Drop by drop.
EL TIEMPO Archive
According to authorities, these loans are known to be offered mainly by informal lenders, who can be individuals or organized groups, and often operate outside of legality and financial supervision. Many of those who resort to these services do so because they are rejected by traditional banking.
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This week the issue of ‘gota a gota’ was once again in the news in the country, because Congress gave the green light to a bill that, according to its promoters, promises to put an end to them by strengthening one of the most important components of the popular economy.
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This is the initiative authored by the representative to the Chamber, Alejandro Toro, which establishes that financial entities such as cooperatives be injected with public resources with the aim of expanding the offer of access to that system.
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Through his social networks, this congressman indicated that the purpose of this project, which was left for presidential sanction, is to reach those citizens who cannot find a place in the offers of banks and other financial institutions, either because they were ever behind in their obligations or because they do not have the required experience.
Drop by drop.
EL TIEMPO Archive
“We are very happy, they have just approved our bill in the fourth debate that strengthens the cooperative and solidarity sector, allowing them to manage more resources today,” said Toro during the celebration for the approval of the next new law.
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Regarding the way in which this initiative will operate, Alejandro Toro explained that “it turns out that if the cooperatives, which are the ones who make microcredits, can lend more, we are attacking the drop by drop, we are attacking the pagodiario, because the majority of Colombians who today are reported in datacrédito or who access the drop by drop , they earn less than two million and cannot access traditional banking.”
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The speaker of the project said that this is very necessary if one takes into account that loans drop by drop are increasing, since, according to a study by DataCrédito Experian, 1 in 5 Colombians who take any type of credit do so. through unregulated channels, the majority being people from strata 1 and 2 with incomes of less than $2 million who request loans of approximately 1.5 million, amounts that traditional banking does not allow access to.
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The only thing left for the project is the reconciliation of texts between the Senate and the Chamber and then it will be sent for presidential sanction, steps that are expected to not be very complex to complete, since it has the support of the National Government and goes hand in hand with the commitment to promote the popular economy through these organizations.
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We must not forget that due to high interests and frequent payment demands, borrowers can fall into a cycle of debt that is difficult to get out of, worsening their financial situation. The presence of these loans generates an environment of insecurity and violence, for both borrowers and the communities where these lenders operate.
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