Inflation remains high. Interest rates rise. And yet more and more people are buying on credit. How does that fit together - and where can consumers who want this secure their loan most cheaply? The financial experts at FMH-Finanzberatung have investigated these questions.
It took a long time. However, the dramatic price increases in the euro zone were then too much: the European Central Bank (ECB) has therefore been increasing key interest rates for several months. The goal: loans should become more expensive so that people buy less and inflation normalizes. That's the theory.
Practice shows, however, that consumers are now buying even more than they did a few months ago. According to current information from GfK, the consumer climate index in Germany has risen for the fourth time in a row.
Many consumers are forced to use the (now much more expensive) loans for larger purchases. The underlying concern is that inflation will remain at a high level. Any purchases and the loans required for this could ultimately be even more expensive in the coming months than they are today.
This fear is not unfounded, believes FMH: In the past twelve months alone, installment loan interest rates with a term of 72 months have risen on average from 3.75 to 6.45 percent. This corresponds to an increase of 72 percent.
A loan of 10,000 euros over six years costs between 600 and 1,200 euros more for the entire term - depending on the bank.
In view of these sums, it is more important than ever to compare the conditions accurately. Security-conscious consumers will also consider how they can protect themselves in the event of any financial bottlenecks in view of the uncertain economic situation.
In order to make it easier for these customers to choose the right loan, FMH-Finanzberatung researched on behalf of ntv which banks offer the best installment loans with a safety net in the event of death, unemployment or disability.
These combination products have long had a reputation for being overpriced. Since July 2022, however, banks have only been allowed to collect commissions of up to 2.5 percent from insurance companies. This cap has caused the premiums to drop significantly.
The cost of securing a loan amount of EUR 10,000 against all eventualities was reduced by around EUR 350 at the top. If you only want to make provisions for death, you can save up to 300 euros in the best case. A 35-year-old person who wants to secure a loan of 10,000 euros in the event of death (duration: 72 months) currently pays around 240 euros on average. This sum is added to the loan amount.
However, security-conscious customers should keep in mind that the protection of such insurances is not infinite. Anyone who loses their job about a month after signing the contract cannot hope that the company will then service the loan for the remaining 71 months. Except in the case of death, the insurance only pays after a certain waiting period and an additional waiting period. In the case of unemployment, most insurance companies only cover the open rates for up to six months.
Given these limitations, each customer must answer for themselves whether they really need the extra protection. If the answer is yes, the following providers are particularly recommended: Customers who want an installment loan with death protection are best off with the products of Deutsche Skatbank, Ikano Bank and Targobank. They received a very good grade from the FMH. In the case of full protection, the 1822direkt and the DKB also score top marks. Among the regional banks, PSD Bank West is at the forefront.
Here you will find the best installment loans without hedging.
