Just in time for the beginning of the spring, banks are opening up their loan assortments. In recent weeks, numerous institutions have changed the conditions for consumer credit. In most cases, interest rates have been lowered. This is certainly partly due to the monetary policy of the EurCen bank – but for the most part not.
Since the beginning of the month, for example, the loans of the savings bank subsidiary mefacredit and Zestbank have been cheaper. The Eicredit has also turned on the interest rate screw. It reduced the interest rates on partial payments with their credit cards.
There were also interest rate increases.
An institution was particularly keen on increasing interest rates, especially in the case of short maturities – instead of just under 6%, borrowers now have to pay more than 13% for loans with a term of twelve months. However, this is an isolated case, which is more likely to be attributable to the company’s internal pricing policy and not to a general market trend.
Overall, the trend towards falling interest rates seems to have stopped. In 2008, when the central bank began to implement its policy of cheap money, this had a rapid and significant impact on conditions in the retail banking business. The most recent actions, however, have only a modest effect through to the end customer.
The central bank lent commercial banks $ 530 billion over three years last week at 1.0% interest rates.
The bulk of the loan volume, however, remained as a deposit of the commercial banks at the central bank. The current measures of the EB serve primarily to stabilize the financial system and have little influence on consumers.
If banks passed on the historically cheap central bank loans to their customers, they would have to raise loans with up to three years maturity in the next few days and weeks at top conditions such as mushrooms. This will probably not be the case. This is also due to the demand situation on the market. Banks do not expect that a further reduction in interest rates on installment loans will increase demand sharply. Who wants to finance and can, can not be deterred by the already favorable conditions.
In connection with the low interest rates on real estate loans, financial experts are currently recommending the perception of interest rates. This also applies to installment loans. Of course, it makes no sense to finance nonsensical consumer purchases only because of the favorable credit conditions. However, it makes sense to reschedule. Many installment loans completed in recent years are several percentage points more expensive than current loans.
Debtors benefit above all from borrowers whose loan agreement allows a free early repayment. Otherwise, the indemnification will at least partially nullify the savings. This applies in particular if the loan agreement was concluded before 11 June 2010 and the more restrictive provisions for indemnity payments do not yet apply.