CET – Total Actual Cost, All About Credit Cost

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CET – Total Cost or Cost of Credit. Financial institutions and other institutions authorized to operate by the Central Bank of Brazil are obliged to disclose to the borrower or contractor of loans and financing the total effective cost of credit operations, both for individuals and for micro and small enterprises. The TEC is applied in any operation that involves the loan of securities for the purchase of goods or release of securities.

CET – Total Effective Cost , all institutions operating in the financial system must provide accurate and transparent information to their clients, partners and employees, with contents that clarify the definitions of the National Monetary Council (CMN) regarding CET (Total Effective Cost).


What is CET?


CET means Total Effective Cost , was created by the National Monetary Council (CMN) – Resolution 3,517, dated 06.12.2007, as of 03.03.2008, all fees are recorded in all financial transactions carried out, with the aim of the consumer knowing beforehand hand, what the costs of a loan or financing are when it comes to completing the hiring.


The CET is a percentage value, expressed in annual form (% pa) and represents the sum of the costs charged in the contracting of a loan or financing. These are: interest rate, tax (IOF), tariff (TAC), records (charges and charges for third party services in the case of vehicle financing).

By knowing all the credit information, the consumer can compare the conditions offered by the banks and financiers being able to choose the best option. The lower the CET, the better for the customer.

What information does the CET contain

Various costs and services charged can be identified in the CET as:

1 -) Taxes – IOF (Tax on Financial Operation) *;
2 -) Registration fee **;
3 -) Evaluation fee of the good; Records, encompassing registry services with contractual records or other documents related to the credit operation and services of the National System of Enforcement; Expenses with commission for origination of the contract; Other expenses relating to the financial service contract (sales promoter services, for example).


  • The taxes levied on the leasing are ISS and PIS and COFINS.
    ** May be charged semiannually for a single client. It will be considered the CPF of the consumer to evaluate this charge.


Where to find CET?

All Financial Institutions must inform the CET from Resolution 3,517 in:
1 -) Registration forms, Pre-contracts and Bank Credit Notes;
2 -) Communication materials, of any type of media, in which they contain values ​​of installments or monthly or annual interest rate;
3 -) Point-of-sale material in which parcel values ​​are shown or the monthly or annual interest rate.

The CET rate – Total Effective Cost , must be included in all these materials so that the client has easy access to information and can compare the amounts of the financing before hiring.

Note : All clients should be aware when signing their loan proposal , financing or other equivalent operation, if all values ​​of costs, interest rates, expenses, administrative fees, additional insurance or any other fees that you have to pay, shall be recorded and completed. It is worth remembering that your signature represents the science and agreement with such values, if you will pay or paid but not in the CET, question the institution.


To date, there are four resolutions related to Total Effective Cost , each dealing with subjects for the improvement and evolution of the matter, began with Resolution 3516, Resolution 3517, Resolution 3518, Resolution 3919. The latter was published on November 25, 2010. In this document, the Board amends and consolidates the rules on the collection of fees for the provision of services by financial institutions and other institutions authorized to operate by the Central Bank of Brazil and other measures.