mercado crédito puts 2 million loans on hold—but there is a catch
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Contxto – As humanity fights an invisible common enemy, society is starting to implement unprecedented initiatives to endure the virus’ side effects. Namely, economic troubles.
Mercado Libre—Argentina’s e-commerce leviathan—is now kicking any users’ outstanding credit due dates down the line. All those consumer credits expiring in March will now be granted later repayment dates without interest or default.
I got 99 problems but Mercado Crédito ain’t one
More than two million credits will be spared (for now). The beneficiaries will be users all across Brazil, Mexico, and Argentina whose purchases had been made through Mercado Crédito.
We understand that this is a difficult time for our clients’ budgets and, at Mercado Crédito, we want to support and convey tranquility to them. Our main objective is to accompany them and offer them alternatives that ease their way during this situation.
Martín De Los Santos, Senior Vice President of Mercado Crédito.
Now here’s the interesting part: According to the press release, this initiative will only be applicable to users whose credit payments have been up to date. Their March installments will expire in April instead.
Still unclear what will happen to those users that have defaulted for at least a day. Your boy, Victor, is currently looking into this.
Wait a minute. What even is Mercado Crédito?
Mercado Crédito is an initiative implemented by Mercado Libre for users to purchase products in deferred installments without needing a credit card.
Users can pay using a debit card, and either Red Link transfers them the cash or money is stored in their Mercado Pago wallet.
Good stuff, but make no mistake, April is coming for you.
Related articles: Tech and startups from Argentina!
-VC
