For consumers in Germany, the year 2016 was a thoroughly positive year for credit . A key contribution to the generally positive sentiment in the credit market from a consumer perspective, was the decision taken at the beginning of March 2016 to reduce the key interest rate for loans in the European Economic Area to 0 percent. But the real benefit for consumers came only through the associated instruction to the banks to pass on these historically low interest rates to consumers. Thus, it was ensured that even ordinary consumers could enjoy a very low-interest loan. For those who have been planning a credit-financed investment for a long time, 2016 was the “right” year. But even those who had already “run” a loan could achieve significant savings this year thanks to the low interest rate policy. The magic word for a high saving on credit was debt restructuring.
Savings in three digits thanks to rescheduling
For example, anyone who used an out-of-date credit facility paid around 9.91% interest in the nationwide average for the year 2016 to date. An interest charge, which was clearly too high compared to a “normal” installment loan. Anyone who decides to replace the expensive credit line with a favorable installment loan this year, not infrequently reduced his financial burden by a three-figure amount. The reason for this is that the interest rate for a installment loan was at a national average of 2.65%. An interest rate difference of well over 7% per annum, which is thus also noticeable in the purse with a rescheduling. By way of illustration: An utilized credit line amounting to 3,000 euros at an interest rate of precisely those 9.91% would have resulted in gradual repayment over a period of 36 months at around 3458 €. If this credit line had been repaid with an installment loan of 3,000 euros at an interest rate of 2.65% over a credit period of 36 months, this would have corresponded to a loan amount of 3,122. In comparison between the two loans, a savings of about 336 euros.
Online loans were cheapest loan offers 2016
Other benefits came from consumers looking for a cheap credit through the Internet. Because who has connected his credit online in 2016, could finance his project significantly cheaper. This was particularly the case for customers of branch banks, who did close the loan at their institute but not directly at the branch. Those consumers who have compared the most different offers for an online loan via a specialized online portal with regard to the conditions among themselves also did well. Evidence of this is a test of the German Institute for Service Quality. This has tested 15 branch banks with regard to their loan offer. With the result that customers receive an average annual interest rate of 5.36 percent when borrowing via the Internet. However, if the same loan agreement is signed on-site at a bank, the average interest rate increases by a quarter to 6.67 percent effectively per annum. Clear evidence that in 2016 the online loan was the best loan offer.