The Institute of the National Fund for Workers’ Consumption (Fonacot) has achieved significant milestones in its 50 years of existence, including a decrease in interest rates on payroll loans by almost 20 percentage points. This has led to an increase in clients and amount of financing, allowing Fonacot to attract more clients and place a greater amount of financing, resulting in a decrease in the rate of the total annual cost of payroll financing for workers.
One of Fonacot’s current objectives is to dispel the notion that it is an institution just for buying furniture. Salvador Gazca Herrera, general commercial coordinator of Fonacot, noted that there has been a significant decrease in the total cost of credit by 18.2 percentage points, even at a time when the economic cycle is marked by high reference rates maintained by the Bank of Mexico (BdeM). He also mentioned that Fonacot’s growth of credit is evenly spread throughout the country and that 59 percent of the loans are granted to people whose income does not exceed two minimum wages.
To address the needs of clients who already have a loan, Fonacot will launch a new application with more features within one month. Currently, 70 percent of clients already have a loan while 30 percent are new. An increase in technology investments has allowed each operator at Fonacot to increase their daily placement from 13 to 17 loans. In addition to this, Gazca Herrera announced that Fonacot will soon launch new products aimed at meeting the needs