The Germans are a nation of borrowers: the sum of approved installment loans is steadily rising. The same applies to the loans themselves. Many have long since not paid back a loan. And they need the money for all sorts of needs. To the classical credit reasons like real estates and vehicles joins numerous other uses. These can also play a role in the granting of a loan.
Financing Germans: More and more loans are being lent
Loans are on the rise: In 1997, when a total of around 654.1 million euros was awarded, at the end of 2016 it was already 1,150.1 billion euros. The figures compiled by the statistics portal Statista in 2017 show a clear trend: more and more Germans have access to funds from installment loans or financing. Around 36 percent use at least one financing for material goods such as cars or real estate.
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About 27 percent have a installment loan, 14 percent use the disposition credit of their checking account. On average, German borrowers have two contracts and pay back about 9,800 euros. But what do they really need the money for? And does it make sense to specify the purpose of the loan application?
From the vehicle to the holiday: the most common reasons to take out a loan
A 2016 Forsa survey reveals the most common reasons why a loan is requested. Around 32 percent finance a used car, around 26 percent a new car. New furniture or kitchens are being lent by 17 per cent, consumer electronics are being paid in installments by 14 per cent of consumers, major household appliances by around 13 per cent.
Also, the compensation or repayment of other loans is a reason for the award of a new loan: About 15 percent use the money to replace an old loan, 12 percent off their Dispo. Renovations and removals (10 percent), clothing and jewelery (7 percent) and vacations (6 percent) are the last uses.
Online loans: therefore they can offer better terms
Anyone who wants to take out a loan is generally well advised to specify the purpose. Often, better conditions can then be agreed. The classic among these loans is car financing. The bank keeps the vehicle as collateral and can thus offer cheaper interest rates. Whether a dedicated or a freely available installment loan is sought – a comparison on the Internet is always worthwhile. Providers such as smava list numerous credit providers clearly and allow a comparison of all conditions. These are usually cheaper for the consumer than other options.
Advantage of neutral financing
To stay with the example of car financing: Online can be found more than 20 neutral providers who offer a variety of conditions. On the other hand, if you finance the vehicle through the dealer, this comparison is not possible; the terms and conditions of the partner or manufacturer bank apply.
As the seller usually receives a commission to complete the financing, he often does not act neutrally – and the buyer may pay more than an alternative provider.