Higher interest rates and stricter requirements for installment loans


NNot only the building interest, also the interest for installment loans have meanwhile increased significantly as a result of the turnaround in interest rates. In addition, the banks are apparently tightening some of the requirements for the creditworthiness of borrowers. At least that’s what emerges from a study by the internet platform Verivox, for which almost a million installment loan offers were evaluated and which the FAZ is exclusively available in advance.

On average, installment loans are around 35 percent more expensive than at the beginning of this year. The average interest rate for an installment loan that customers were offered via the portal rose from 4.98 percent in January to 6.72 percent in September. In the loan agreements actually concluded, the average interest rate rose from 2.98 to 4.92 percent in the same period. The average term of the brokered installment loans was 67.4 months, the average loan amount was 15,489 euros.

“Historical rise in interest rates”

“After years of downward slide, we are now experiencing an increase of historic proportions in installment loan interest rates,” said Oliver Maier, Managing Director of Verivox Finanzvergleich GmbH: “Of course, the latest central bank decisions play an important role in this.” But long before the ECB’s first key rate hike in July the market has priced in the interest rate turnaround: “Since the spring, installment loan interest rates have continued to rise.”

For the study, 13 banks were also questioned in more detail. Twelve of them stated that they had increased their installment loan interest rates in the past three months, one did not provide any information. Eight banks are now expecting further increases Interest charges, three assume a constant level. However, none of the institutions surveyed believed that interest rates would soon fall again.

Five banks also stated that they had tightened their lending guidelines in the past three months, and three expect to do so in the next three months. According to the study, this could mean, for example, that those interested in credit would have to show a higher minimum income or a higher monthly surplus in the household bill. In any case, the rise in interest rates and, in some cases, stricter creditworthiness requirements are making it more difficult for consumers to finance larger consumer needs with a loan.



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