In spite of competitive pressures: interest rates for installment loans rise in the crisis

installment loans in Corona a crisis of an evaluation of the Internet portal Verivox according to more expensive. In particular, regional credit institutions tu

In spite of competitive pressures: interest rates for installment loans rise in the crisis

installment loans in Corona a crisis of an evaluation of the Internet portal Verivox according to more expensive. In particular, regional credit institutions turn therefore to the interest rate screw. In the case of rising unemployment, the risk that borrowers might not pay back your loan, increase Oliver Maier, CEO of Verivox financial comparison said. "First of all, many regional institutions have responded with higher interest rates." In the case of the nationwide available of the sharper competition set the credit institutions, however, narrow limits for increases.

The data of the Internet portal, according to the average interest rates rose for a new installment loan of 10,000 euros with 48 months since the onset of the Corona-crisis in March by more than a percentage point, to 5.80 percent this week (date: Wednesday, 17. June). In the same period of the previous year, there had been a slight decrease by 4.69 to 4.56 percent.

The bandwidth is currently very large. So the interest rates remained at the available nationwide since the outbreak of the crisis, with slight fluctuations in the average constant at approximately 4.2 percent. In the case of regional services increased from 4,85 to 6.24 percent increase.

banks expect a wave of loan defaults

Maier, according to some of the banks have tightened in the crisis, the internal guidelines for the credit approval. "You build the business with Gutverdienern in secure employment and create other customer groups for stricter standards, particularly in the case of credit interested parties from industries, which were drawn from the Corona-crisis hit particularly hard."

The Internet portal, evaluated the representative effective interest rates (Two-thirds in interest) of approximately 200 banks and savings banks, the corresponding information on your website. A two-thirds interest indicates how much a loan for at least two-thirds of borrowers may not exceed costs.

The independent FMH financial advice, as observed in the case of 35 evaluated institutions also increased interest rates for consumer loans in the past few months. Big jumps are not expected in the face of competition, however, it said on the website.

Updated Date: 18 June 2020, 03:19

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