Home » Installment loans 51 percent more expensive than a year ago

Installment loans 51 percent more expensive than a year ago

by admin
Installment loans 51 percent more expensive than a year ago

Rising interest rates are not good news for all consumers. While savers are benefiting from the turnaround in interest rates, installment loans have become an average of 51 percent more expensive in the last 12 months. This is shown by a current analysis by the comparison portal Verivox, for which almost a million loan offers were evaluated. But with a loan comparison, consumers can save an average of 680 euros on a typical loan.

Installment loans on average 51 percent more expensive than in the previous year

In March 2022, installment loan interest rates averaged 5.14 percent on the market. Banks currently charge an average of 7.75 percent interest. Loans have become more expensive on average by 51 percent year-on-year. Anyone who obtains several offers before concluding the contract can select a particularly favorable one from them. That is why the average interest rates of the concluded are significantly lower than the average market interest rate: an average customer currently pays 6.04 percent interest at Verivox for his installment loan. The so-called median interest rate was evaluated. Half of all Verivox and customers conclude their loan at this interest rate or cheaper.

20 euros more monthly rate for a typical loan

In March 2022, the average interest rate for loans taken out via Verivox was still 2.99 percent. For a typical installment loan of 15,000 euros with a term of 5 years, consumers had to pay an average monthly rate of 269 euros at the time. For the same loan, an average borrower pays a 20 euro higher rate today due to the rise in interest rates. Over the full term, the additional costs add up to around 1,200 euros.

See also  Van Peteghem wants to mitigate the sudden higher costs for fossil commercial vehicles

“So that the costs do not get out of hand, a thorough comparison of providers before taking out a loan is more important than ever for those interested in taking out a loan, especially in times of rising interest rates,” says Oliver Maier, Managing Director of Verivox Finanzvergleich GmbH. “An example calculation shows how much it’s worth it: If you take out an installment loan for 15,000 euros with a term of 5 years at the current average market interest rate of 7.75 percent, you will pay a total of 3,029 euros in interest over the full term. With a cheap loan at an interest rate of 6, 04 percent, the total costs are 680 euros lower.”

methodology

All installment loan offers that Verivox customers have received via the comparison portal in the last 12 months were evaluated for the evaluation.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy