Interest on consumer loans – the most important thing at a glance:
- The annual percentage rate of interest averaged 5.91 percent in 2016
- Online loans are up to 1.7 percent cheaper than branch loans
- Installment credits are the most frequently used by the Germans (23%)
- On average, loans amounting to 9,330 euros are taken up
- Typical installment borrower: 48 years, male, married
The interest rates for consumer loans fluctuated according to interest rate statistics of the Bundesbank in 2016 only minimal. The annual percentage rate was 5.91 percent on average. In 2016 borrowers paid slightly higher interest rates than in 2015 (+ 0.17%). But it was also cheaper. That showed several providers. They offered loans for several months at zero percent interest. Even far away from such promotions consumers could save on borrowing. Those who completed loans on the Internet paid on average up to 1.7 percent less interest than in branch banks. The German Institute for Service Quality, among others, achieved this result: Branch banks offered more attractive interest rates on the internet than in the branches themselves (on average 5.36 percent versus 6.67 percent). The fact that this was no coincidence is shown by the interest rate trend of the online loans brokered in 2016 by the credit comparison portal Smava. On average, borrowers paid 4.36 percent there.
The interest rates for consumer loans fluctuated according to interest rate statistics of the Bundesbank in 2016 only minimal.
Forecast: Interest rates on consumer loans will hardly fall in 2017
The European Central Bank (ECB) will continue to stick to its low interest rate promise in 2017. The Governing Council of the ECB announced on 8 December that “the ECB’s key interest rates will remain at or below the current level for a longer period well beyond the end of the bond purchase program.” “The ECB decision will allow consumers to continue lending in 2017 as well historically favorable conditions, “says Alexander Artopé, CEO of the credit comparison portal smava.de. “We expect interest rates to remain stable overall. So if you want to take out a loan, you should not speculate on falling interest rates. “
The most popular loans: installment loans, credit lines, real estate loans, mortgage lending
When it comes to credit, the Germans have a clear favorite: installment loans are used most frequently (23%). This is followed by overdraft facilities (12 percent), real estate loans (6 percent) and loans for mortgage lending (6 percent). Among the 23 percent of installment borrowers, 20 percent even opted several times for this type of financing. This was the result of a Forsa study commissioned by the online credit comparison portal smava.
Cars are the most frequently funded, travel is the rarest
Most frequently, installment loans are used to purchase a new or used car or motorcycle (41 percent), according to Smora’s Forsa study. It follows the financing of consumer goods such. As computer, television, washing machine (36 percent) and expenses for the own home such. B. Moving, furniture, renovation (16 percent). 4th place proves the rescheduling (10 percent). Further uses include the settlement of the disposition credit (9 percent), the financing of training (4 percent), ceremonies (1 percent), travel (1 percent) and commercial use (1 percent).
Uses of installment loans: cars and motorcycles are most often funded, travel and vacation least often.
Typical installment borrower: 48 years, male, married
The typical installment borrower in Germany is on average 48 years old, married and has an average net household income of 2,950 euros. Installment credits are more commonly received by men than women (53% vs. 47%). Men also use higher sums of funding (men: 10,567 euros vs. women: 7,964 euros). In the nationwide average, loans amounting to 9,330 euros are taken up with a term of 35 months.