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 The number of new loans increased in the second quarter of 2018 by 4.5 percent compared to the second quarter of 2017. Companies and private borrowers received loans totaling € 27.47 billion. Interest rates rose by 0.44 percent compared to the second quarter of 2017. However, many consumers would have saved tremendously if they had completed their loan over the Internet. From the figures of a credit comparison portal shows that an installment loan on the Internet was on average 37 percent cheaper than average in the whole of Germany.

A loan on the Internet has offered savings potential of 2.11 percent on average in recent months. This has, above all, the background that the interest rate differentials are getting bigger and bigger. Overall, borrowers could have saved more than € 765 million if all their loans were exclusively on the internet. This is shown by figures from a credit comparison portal, Private credit and the BundlessBank.

Interest on online loans lower

Interest on online loans lower

For installment loans on the Internet, the APR in the second quarter was just under four percent, 0.46 percentage points lower than in the same period of 2017. However, data from the BundlessBank show that interest rates in the nationwide average hardly changed compared to a year ago have. If you paid 5.80 percent interest in the second quarter of 2018, it was 0.02 percent more a year ago. The difference is therefore only insignificant.

The Private credit indicates that the borrowers in Germany with an installment loan on average use a loan amount of 9,367 euros. The average maturity is just under 47 months. For such an average loan, people in Germany currently have to pay about 1,090 euros in interest. On the Internet, however, you could save 400 euros, because there were in recent months, interest rates on average only about 690 euros.

More car loans granted in the first half of 2018

The high level of newly granted loans in the first half of 2018 is mainly based on a rise in new car loans. The volume of lending totaled more than 77 billion euros. Overall, five percent more loans were granted in the first six months of the year than in the same period of 2017. From January to June 2018, more than one million vehicles were financed by commercial banks. This corresponds to a gain of 5.5 percent.

People in Germany decide to buy a new car for a loan. The loans for new cars went up by 8.3 per cent, although only scarcely three per cent new registrations were registered. For used car loans, the number increased by four percent and was again against the market trend, because the number of cars that changed hands in the first half of the year, fell by 2.1 percent compared to the first half of 2017.

Finance a new car

A car purchase on credit is very popular with the Germans. Cars are an important asset for companies and individuals. More than 50 percent of the lending banks’ investment finance and over 40 percent of consumer loans were used for a new car. Although companies raised only one percent more loans, the number of private individuals rose by twelve percent.

Low interest rates as a plus

 More lending in the second quarter

The increase in car loans is probably also related to the still very low interest rates. Anyone who pays his new car in cash gets a high discount from many car sellers. Car buyers can currently save a lot when buying a new car. Car loans are provided by banks and car dealerships. Therefore, car buyers should inquire of all eligible providers for the cheapest possible credit. It may make sense not to divulge his desire for financing in the dealership, but to ask the entire purchase price for the new car after deducting discounts. With this total, the car buyer can then inquire specifically for a suitable loan and use special comparison calculator on the Internet.

In addition, different loan models may be considered here. The three-way financing, for example, is a mix of buying and leasing. However, it is important to compare the costs and terms of the eligible loans well. A high final installment may be due or a residual debt insurance may incur additional costs.

State loans and grants for barrier-free housing in old age

Older people often think about making their home accessible. This can quickly lead to high costs. The state-owned KfW Bank grants low-interest loans and subsidies, which have now been increased again. The minimum subsidy is ten percent, and the conversion of a complete house can even be subsidized by 12.5 percent.

A loan for barrier-free reconstruction measures at KfW may have a loan amount of 50,000 euros, for which the annual percentage rate of interest is 0.75 percent. The loans from KfW can also be applied for by older people, because age is not a specific condition for receiving this loan.

High demand for loans for burglary protection

This loan can also be combined with loans to improve burglar protection, which are currently in high demand at KfW. The state subsidies have recently been increased again here. Depending on the planned conversion measures and the personal requirements, it may still make sense to first inquire about a suitable loan on the internet. On the basis of this information, one can then opt for the most appropriate financing.

Consumers are planning further loans

Consumers in Germany still want to take out loans. Above all, they plan to finance consumer electronics or technical devices such as smartphones through a loan. Although these devices are often very expensive, especially younger people feel the need to always have the latest model here. So it certainly makes sense to finance them with a loan.

To deal with the consumers with loans, the Gardfourt raises the Consumer Credit Index twice a year for the banking association. This is currently at 118 points, so it is assumed at GfK that people in Germany will continue to demand loans. However, loans for large household appliances are less often planned; Consumers are increasingly planning to finance furniture, cars or kitchens. Already, one out of every three households regularly takes out a loan and more than 98 percent pay it back as agreed.

Rescheduling can replace expensive loans

Last year, loans worth more than 56 billion euros were raised in Germany, mainly to finance consumer spending. Car loans were particularly popular here. Ten billion euros were used for a new car purchase and twelve billion euros for the purchase of a used car. Even furniture, kitchens or household appliances are often financed by a loan. According to the statistics portal statista, the total amount was three billion euros.

However, the statistics portal also lists loans worth € 1.7 billion for which no purpose has been specified. Half of this was not earmarked and was needed by the borrowers in cash. These loans may have been used for rescheduling, although there is no numerical evidence of this. However, it is known that people often take out a new loan in order to pay off a too expensive old loan at another bank.

Replacing expensive old credit

This can be very useful in different cases. For example, those who slip into negative territory with their checking account again and again and use their debit credit can use a debt rescheduling loan to clear their account. Installment loans are often much cheaper than an outright loan, as interest rates are lower. However, this is only worthwhile if you do not go down again after clearing the account. Debt rescheduling can also be a sensible option to pay off too expensive a loan.

Even those looking for a loan for rescheduling, finds a good point of contact in credit comparison portals on the Internet. However, it is important in this case that you know his residual debt. This is usually in the repayment plan of the old loan, but also the bank can provide information. In order to reduce the loan amount of the new loan, one can also consider whether one can spend some of his savings on the repayment of the old loan.

It is also to be considered that in the case of many loans in the context of early repayments, a maximum repayment penalty of one percent will be due. If the loan only runs for a maximum of one year, it will be reduced by half. If one is now clear about the amount of the necessary loan amount, one must worry in the next step about the duration and thus also the monthly installment due in the future. With this information you can now use a credit comparison calculator. In this way, the borrower usually also recognizes whether a debt restructuring is worthwhile for him at all.

Credit despite Private credit entry?

Reputable credit providers in Germany always conduct a Private credit query when someone applies for a loan from them. Not only does this aim to ensure that the borrower is able to repay his loan, but also to protect borrowers from over-indebtedness. But a Private credit entry can often be long ago and in the meantime, the financial and personal situation of the borrower has changed for the better.

So if you want to take out a loan, but fear that the Private credit is against him, should first request a self-assessment of the Private credit. This is free of charge once a year. Now you can check the documents and delete an incorrect entry.

Improve scoring

A better scoring also promises, if one announces unnecessary credit cards and giro accounts. Not only too late or unpaid payment obligations, but also the frequent change of the current account can lead to a negative entry in the Private credit. Even balancing his disbursement credit can help to improve the scoring. However, these measures are only effective in the medium to long term. For that reason, you may have to postpone the loan you want for a few months.

P2P loans on the rise

P2P loans on the rise

Some credit portals act as intermediaries of P2P loans, in which two individuals agree to lend. A bank is not needed here. This form of credit can certainly be an alternative for borrowers. The lender is also a private investor who has the prospect of rewarding returns through lending.

According to, the total volume of P2P loans is already 107 million euros. This sum could continue to rise in the next few years. Especially in Asia, but also in the US and the UK, P2P loans have been known for some time and are being used by more and more people.

Pensioners with good chances of getting loans

Even if life expectancy in Germany continues to rise and many senior citizens are physically and mentally very fit into old age, many banks still refuse to give credit to older people. The requirements for pensioners are actually very good: they often have their own house or apartment, have a fixed income through their pension and are no longer threatened by unemployment.

However, this does not seem to be an argument for many banks. By referring to a case-by-case examination, they often reject loan requests from older people. As the German Institute for old-age provision reports, the complaints accumulate in this regard. Older people also increasingly want to finance a new car or renovate their home through a loan.

Seniors often with good collateral

There are ways and means by which seniors achieve this goal. One possibility is to register a mortgage on the own house in the land register. Even the shortest possible term of the loan can increase the chances. If the spouse is still working, you can apply for the loan together with the spouse.

In addition, a new legislation supports retirees. The Real Estate Credit Assessment Guideline, which has been in force since May, states that banks can no longer pretend that a loan must be paid off at the end of statistical life expectancy. You are now relieved to look more closely at whether the claimant can repay his loan properly.

Central banks ease lending standards

As the Central Bank announced, banks in Europe once again eased their conditions for issuing a loan in the second quarter. The CB regularly polls banks in Europe on their standards of lending. This survey was attended by nearly 150 banks from across Europe. The analysis shows that banks and private individuals are more easily granted loans. Banks have fewer economic and corporate concerns and are increasingly competing with each other.

In the second quarter, banks in Germany (but only slightly), Spain and Italy lowered their targets. In France and the Netherlands, there was no relief on lending. Also the hurdles for obtaining a real estate or consumer credit decreased. In the coming weeks and months, banks could implement further easing in lending. This could lead to an even greater demand for loans.