Consumers in Germany are borrowing more and more money. In the second quarter of 2018, it was 27.47 billion euros. That is 4.5 percent more than in the same quarter of the previous year. The interest rates due for this are becoming increasingly different: those who completed their installment loan on the Internet in the second quarter paid on average 2.11 percentage points less interest than the German average. Compared to the same quarter of the previous year, the interest rate differential increased on average by 0.44 percentage points. If all borrowers had completed their loan on the Internet in the second quarter, they would have saved a total of 765 million euros. This is shown by data from the Bundesbank, Schufa and the credit portal Smava.
“The risk of paying too much for a loan is increasing. More and more consumers are realizing that their bank does not minimize the risk. After all, there is usually no interest rate comparison between loans from various banks in the advisory service, “explains Alexander Artopé, Managing Director of Smava. “Previously, borrowers had to live with it – not anymore today. They use credit portals instead of banks to find and lock the cheapest loan. “
Rising interest rate differentials: Online loans are getting cheaper and cheaper
The increasing interest rate differentials in installment loans are primarily due to ever-decreasing interest rates on loans on the internet. Their effective annual interest rate averaged 3.69 percent in the second quarter. This is 0.46 percentage points less than in the same period last year. This is shown by data from the credit portal Smava. On the other hand, according to the Bundesbank, federal interest rates remained almost constant: in Q2 2017 they stood at 5.82percentt and in Q2 2018 5.80percentt. Consumers are therefore well advised to complete their loans on the Internet via PurplePayday indexpage.
Annual percentage rate of installment loans in comparison
Interest rate differentials for installment loans: Loans are cheaper on the internet than the national average
692 Euro instead of 1092 Euro: Online credit saving saves 37 percent
According to information from Schufa, the average installment loan amounts to € 9,367.40 and has a maturity of 46.8 months. In the national average, it cost in the second quarter of 2018 on average 1091.75 euros in interest. Who completed the same loan on the Internet, paid an average of 692.42 euros in interest. That’s a price difference of 399.33 euros (36.58%) per loan. If one adds the price difference per loan to all new installment loans (1.9 million), which were concluded in the second quarter according to Schufa, then it becomes clear that the savings potential in the second quarter amounted to 765 million euros.
Going online is not enough: you can only save money with cross-bank credit comparison
“More and more consumers realize: On the Internet, I get the same or even better performance on more favorable terms. So I benefit from the credit on the Internet. Anyone who only goes to his bank’s Internet branch, however, is likely to overpay, “says Artopé. Banks are usually focused on selling their own credit products. A comparison of several banks is therefore very rewarding.