Banks in Costa Rica have made it easier to borrow money this month – foreseeing the “January Financial Crunch”, or as some like to call it, the 3-month Christmas financial hangover. When you take into account all the money spent in preparation for Christmas, which leaves wallets a great deal lighter than usual and add to that the necessary expenses for children going back to school on Feb. 11, there is little left to be spent on luxury items.

Costa Rica News — Jan. Financial Crunch Follows the Holiday Season

The average cost to send a child to school in Costa Rica can be between $45 and $70. For families with lots of kids, this can be a great deal of money to spend in the post-holiday season. It is still recommended that families make school purchases now, just a few days before the “Back to School” season starts at stores and the prices are jacked up.

To combat the corresponding lull in the economic sector, banks have are offering new loans that can be processed in less than 24 hours. For example, Banco Popular has opted to call its new $100 to $1000 2-year loans “Salvaditas Popular” or Lifesaver loans, which do not require a co-signer.

Bancredito has an entire “rapid credit” service that can approve a loan in less than an hour. Anyone soliciting such loans must bring proof of salary, a copy of their cedula, a copy of contributions to the Caja, and a receipt for public utilities as proof of residence. These loans come with a 19% interest rate.

Banco Nacional is offering 6-month to 5 year loans for up to $4,000 with a 25% interest rate. They also offer a loan with a minimum amount of $1,500 for health, personal expenses and leisure activities.

While this extra option for cash flow may help, it is still likely that you will find much less traffic in the shopping centers this month, making it the perfect time to browse some post-holiday sales racks.

Photo courtesy of msnbc.com.

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Filed under: Costa Rica News on January 7th, 2008