Consumer credit and personal loan rates are currently very low. But you have to know how to decrypt offers! Call rates of 3% (or even less) will not be offered to all files. Some keys to see more clearly in the jungle of consumer credit offers.
Why are consumer loan rates so low?
Consumer credit rates are indexed to short-term market rates. They are largely a function of the monetary policy of the Best bank. Even if it has been raised several times, the main refinancing rate of the central bank is at a historically low level. It currently stands at 3.50% and even dropped to 2.00% in 2005! See the current consumer credit rates! At this level, the money that banks borrow to then distribute their consumer loans is not expensive. They can therefore in return apply a fairly low rate to their customers while preserving their margin. dollarpean monetary policy applies low rates to boost growth. And credits favor consumption in the dollar zone, itself a factor of economic growth.
What is behind the discounted rate offers?
Rates at 3.00% TEG or less! At this level, it is difficult not to resort to consumer credit. Credit is inexpensive and the French are increasingly using it to finance all their projects. However, you must be vigilant with advertisements and announcement effects. The lowest rates are only applied under certain conditions and certain advertisements are misleading. In fact, we see that the average TEG of consumer loans is 6.30% (personal loan not allocated). It is therefore necessary to decrypt the offers, especially if you take out loan insurance. The lowest rates are often non-insurance solutions. And for some important projects, insurance is highly recommended. Finally, the lowest rates are often only applicable for very short periods and for a significant amount. Thus, it should not read “rate of 3.00%” but “rate from 3.00% depending on the duration and the amount requested”. The monthly payments to be paid in order to benefit from the lowest rate are often prohibitive … Finally, for some revolving credit offers, the very low rate is only an initial rate, valid only a few months before rising to levels close to wear rate (fixed at more than 15% …).
Trends to be expected in the consumer credit market
The French will, rightly, continue to use credit to finance projects that are important to them. However, due to inflationary risks and the return of less fragile growth, rates should rise and conditions will be slightly less favorable. Also, if you have a project that is important to you, it is very interesting to use credit now.
Good to know
It is traditionally accepted by banks and credit organizations that your effort rate should not exceed 33% of your monthly income. Our credit comparator takes this data into account. In a few moments, you get credit proposals tailored to your income and your project. If your project becomes clearer, taking out a loan via the Internet saves you considerable time compared to conventional banks.