A recent survey of 20 banks shows that 71 percent of the banks surveyed by the credit portal smava do not expect interest rates to change for installment loans. Of a rise in interest rates of up to 0.4 percentage points 18 percent of the banks go out. 12 percent believe a rate cut of up to 0.4 percentage points is likely. “The rates of installment loans will remain in the opinion of the banks in the next few months for the first time constant. This means that borrowers will pay an annual average interest rate of 5.7 percent. Who completes the Internet, will pay on average 1.9 percentage points less for his loan, “summarizes Alexander Artopé, CEO of smava the results together.
Survey of banks: This is how interest rates for installment loans develop in the third quarter of 2018
Even with the best credit rating: interest rate differentials of more than 5 percentage points
Despite persistent low interest rates, there will continue to be large interest rate differentials in installment loans. They are not attributable solely to the different credit ratings of the borrowers. Even within the credit rating classes, there are large interest rate differentials: with a loan amount of 10,000 euros and a maturity of 48 months, even with the best credit rating, for example, 7.3 percentage points difference. The interest margin in this case is from 0.69 to 7.99 percent. This is the result of data from FMH Finanzberatung and the credit portal smava.
Borrowers pay over 2 billion euros too much for loans every year
Alexander Artopé, co-founder and CEO of smava
The credit market is not clear to consumers. The result: Hardly any borrower is aware of the drastic interest rate differentials. “We want to make consumers aware of the differences in credit prices and make them realize that they can save more than € 2 billion a year by comparing credit online,” says Artopé.
About the survey
The credit portal smava has in the period from 31.05. to 8.06.2018 interviewed 20 banks in the third quarter of 2018 with the help of an online survey on interest rates on installment loans. The results mentioned are rounded percentages.