Dazzling Drop In Rates On Consumer Credit

When a borrower decides to make a loan, some lending institutions may offer 1% consumer credit over 12 months. In other words, credit has reached a historically low level, which is worth the detour. A consumer loan meets various daily needs such as replacing a water heater, buying a new appliance or other. It also makes it possible to concretize big projects of life. However, the borrower must not abuse it. Also, for banks and lending institutions, the market is a bit dynamic. In fact, in 2017, consumer loans evolved by 6% compared to the previous year.

At a particular lending institution, consumer credit increased from 200,000 credit applications in 2015 to 250,000 in 2016, reaching 300,000 in 2017. The same is true for another, between 2015 and 2017 , the increase registered in consumer loan is of the order of 24%. You should know that the promotional offers of banks and lending organizations rhyme with a rate of 1%, less than inflation. Obviously, it is this interest rate cut that has energized this market. For historical purposes, in 2015, the rates were between 4.5 and 7%. Because of the competition and the bidding down that continues to persist, some institutions do not skimp to offer offers to 1%.


The rate of consumer credit at 1% or less

zero interest

Also, the offer 1% over twelve months is fashionable, through offers offered by various renowned organizations, which have built their reputation on highly competitive offers in the consumer credit market. Thus, the most common credit proposals provide loans offering 1% over 12 months for a credit of 10,000 euros. This amount can finance a computer purchase or a used car, as examples. And, icing on the cake, there are even competitive offers for consumer loans that rhyme with a rate of 0.95% over 36 months. This kind of offer is generally caused by the dynamism of the requests deriving from the concept of “full on line”. In other words, all the procedures for questioning, requesting and submitting the loan file are done over the Internet, without any paper.


Do not be afraid to take out a consumer credit

Do not be afraid to take out a consumer credit

Also, experts in the field have found that it is no longer shameful to make a consumer loan. At the same time as falling rates, the target audience has evolved. Thus, a new category of customers, from the middle classes, has appeared, and assumes perfectly. And even those who have a well-placed savings, now focus on lower rates, borrowing rather than digging into their funds, already, well placed and preserved. The experts even managed to profile the average borrower today. The borrower is 39 years old and is requesting a loan of € 13,684, repayable over 53 months. In more than half of the cases, he would have taken out a car loan (ie 55%), compared to 19% of cases for an unallocated personal loan (ie loans that do not have a specific, pre-defined use). like the financing of a trip, the regularization of the taxes to pay.

Regarding the loan work, it reached 14% if the personal credit affected affected 12% of cases. This is the personal loan without any proof of income earmarked for the purchase of a particular property, fixed at the outset. In any case, the borrower must not hesitate to play the competition. Indeed, even if all the rates charged are actually much more reasonable than the existing rates, three years ago, there are still significant variations, from one bank to another, from one lending institution to another. Playing the competition would benefit from a very low and advantageous rate. Also, the borrower must be always vigilant and wait to have a specific project before embarking on the spiral of debt for a few years. In short, a credit is an assumed and thoughtful act, which is not done on a whim.

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