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Consumer Credit: Your project is threatened by high interest rates?

Consumer credit rates, of all types combined, continued to rise sharply in early June, according to our monthly metric. The deteriorating economic situation weighs more and more on us. With the consequences of obtaining loans?

Months passed, and it was confirmed: the Covid crisis – the sequence of war in Ukraine brought consumer credit, like other economic sectors, to The new sequence is somewhat unfavorable for borrowers.

While the start of 2022 was marked by lower rates, on average, compared to the previous year, the outbreak of hostilities in Eastern Europe and the economic uncertainties it created triggered a crisis. Almost instant reversal of the trend, which is confirmed from month to month. In early June, the gap with 2021 rates continued to widen, asserts Sergio Monteiro, founder of consumer credit comparison CheckmonCredit.fr.

With some nuances, however. Personal and business car loans take off. Average rates Quarter-point higher than in 2021 for business loans. And even more for loans aimed at financing a car or a motorcycle. This is a somewhat special case, as Sergio Montero develops. The market for new cars is very weak due to shortages. Logically, banks are reluctant to offer aggressive promotions.

The category least affected by the increase: Diversified personal loans and cash requirements. A product whose rates are often closer to usury thresholds, maximum authorized rates, and thus lenders have less room for adjustment.

Every month MoneyVox, in partnership with consumer credit comparison checkmonCredit.fr, brings you a barometer of consumer credit rates. It shows average rates in about thirty banks, insurance companies and credit institutions, depending on the type of project, the amount of financing and the required repayment period.

Modified Barometer – June 2022
the cars
(new and used)
More than 12 months up to 36 months up to 60 months Up to 84 months
Up to 5000 Euro
Excellent rate 2.11% 3.31% 3.90% 4.78%
average 7.37% 7.51% 6.34% 6.02%
up to 15,000 euros
Excellent rate 0.76% 2.20% 2.77% 3.41%
average 2.65% 3.58% 3.86% 4.36%
up to 40,000 euros
Excellent rate 0.79% 2.10% 2.69% 3.25%
average 2.54% 3.37% 3.73% 4.26%
Business More than 12 months up to 36 months up to 60 months Up to 84 months
Up to 5000 Euro
Excellent rate 2.72% 3.14% 3.53% 3.88%
average 7.26% 7.38% 6.14% 5.68%
up to 15,000 euros
Excellent rate 0.79% 2.22% 2.71% 2.93%
average 2.69% 3.47% 3.75% 4.18%
up to 40,000 euros
Excellent rate 0.77% 2.04% 2.59% 2.88%
average 2.59% 3.27% 3.56% 4.07%
other loans
Personal
More than 12 months up to 36 months up to 60 months Up to 84 months
Up to 5000 Euro
Excellent rate 2.65% 3.87% 4.49% 5.24%
average 7.79% 8.10% 6.86% 6.82%
up to 15,000 euros
Excellent rate 0.79% 2.24% 2.87% 3.66%
average 2.79% 3.89% 4.16% 4.54%
up to 40,000 euros
Excellent rate 0.85% 2.21% 2.95% 3.61%
average 2.57% 3.62% 3.99% 4.37%

Rates at the beginning of June 2022. Data provided by the consumer credit comparator CheckmonCredit.fr

Banks are more cautious, but they are open

The reasons for these increases are known. The money they lend, the banks themselves borrow from the markets. But the cost of this refinancing is increasing, and they are passing it on.

Family package: we have Compare package offers for the whole family

But this increase is also A manifestation of the increased caution on the part of specialized credit institutionsthat seeks to protect its margins. A particularly negative economic situation, in particular a sharp rise in consumer prices, actually affects the financial situation of households, starting with the most vulnerable. Thus, these people tend to resort to personal loans to pay their bills or make ends meet.

The result: increased risk of default, and thus increased vigilance. Floa Bank, a specialized subsidiary of BNP Paribas, for example, has announced its intention to Enhance the terms of their allocation in the coming weeks. Mark Lanvin, deputy managing director of the daily, explained that we don’t have a profession to save people’s coffers without asking ourselves questions in this extraordinary context. Parisian.

Does this option bode well for a broader tightening of new loans? In the near future, Sergio Monteiro, of CheckmonCredit.fr, hasn’t spotted the warning signs. what are they? Banks start with Request more documents, with small touches and in some features, this good market watcher confirms. The second lever to reduce its risk is Determine the maximum repayment period, and reducing it, for example, from 84 to 72 months. If it does, it will be a clear sign of stress. But I have no feeling that is the case currently, concludes Sergio Montero.

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