Interest rates on consumer credit
The interest rates on consumer credit have recently fallen significantly. This is evident from several studies. After the interest rate level on the market for real estate loans has been declining for quite some time now, a decline in interest rates for loans without a land register entry is increasingly being recorded.
For example, the interest rate index of the consumer portal Deeper.de fell significantly. Within six months, according to the index, the average interest rate for a installment loan at 36 months fell from 8.2 to 7.2 percent a year. Previously, it had taken 18 months for interest rates to fall to that extent. The key interest rate of the European Central Bank has been at its historic low of 1.0 percent for years.
Even loans with longer maturities have become significantly cheaper.
According to the Deeper Index, interest rates on 60-month loans have dropped from 8.5 to 7.6 per cent over the past six months.
The index of MHF Finances also indicates a decline in lending rates, even if this is significantly lower than the Deeper index. The average interest rate on a 36-month installment loan has fallen from just over 7.6% to just over 7.5% in the last six months. At 48 months, the interest rate dropped from 7.7% to just over 7.5%, and at 60 months, the average rate of interest was 19 basis points (from 8.09 to 7.9).
Fact that interest rates on consumer loans
The fact that interest rates on consumer loans will fall later than on the real estate market will be influenced.
Among other things, these were due to a lack of comparative pressure on the part of consumers. While dozens of offers are often thoroughly checked in the run-up to mortgage lending, consumers often opt for consumer loans impetuously and try to find the best deal for the respective project.
The interest rates for account overdrafts also fell slightly. MHF Finances estimates the average interest rate for the use of the disposition credit at 11.2 percent. 12 months ago, banks demand more than 11.6 percent. With regard to tolerated account overdrafts, MHF Finances noted a decline from 16.00 to 15.74 percent over the past 12 months.