This article refers to a predatory lending and extortion practice known as "drop by drop", which is common in many latin-american countries. This name characterizes the practice of extracting money from a victim slowly over time.
The following are common expressions used to refer to this lending and extortion scheme, in english and spanish.
| Spanish | English |
|---|---|
| préstamo gota a gota[1] | drop by drop loan,
drip by drip loan |
| préstamo facilito[2] | easy loan |
| pagadiario | express loan |
These expressions describe a practice that in some countries is considered criminal, in that they offer informal loans with onerous payment conditions.[3] Drop by Drop loans are known for having a high difficulty of making payments, primarily due to high interest rates, which can exceed 500%.
Interest rates are often comparative to or exceed those of "Payday Loans" (as they're commonly referred to in the United States[4]) or other microlending services that may be commonly known in various other countries. [5]
- ^ Doherty, Sean (2024-03-28). "Financial Vulnerability Fuels Predatory Crime in Peru". InSight Crime. Retrieved 2024-10-04.
- ^ Cornejo, Deyna (2023-05-09). "Con sueldos y gimnasio: así funcionan las "academias" de extorsión gota a gota en el Perú". larepublica.pe (in Spanish). Retrieved 2024-10-04.
- ^ "Las 5 claves para detectar préstamos 'gota a gota' y pueden terminar en extorsión". Gestión (in Spanish). 2023-04-23. Retrieved 2023-05-12.
- ^ "What Is A Payday Loan? – Forbes Advisor". www.forbes.com. Retrieved 2024-10-04.
- ^ S.A.S, Editorial La República (18 February 2019). "Interés del 'gota a gota' es siete veces más alto que el de los microcréditos". Diario La República (in Spanish). Retrieved 2023-06-02.