Interest Rates on Installments Loan
What greatly annoys savers on the one hand, provides for a large number of those who want to make an investment now or in the near future, or even need, for a certain “well-being”. What is meant by that? Quite simple – low interest rates! For savers a horror, because the chance to increase savings deposits thanks to good interest income is in a low-penny a thing of impossibility. For people who intend to borrow, but a blessing, because loans are cheaper than ever. So it is not surprising that people use this phase to fulfill a few long-cherished wishes. Thus, in the current low-interest phase, one in four Germans has already used this situation to take out a low-interest loan and, after all, one in three is quite willing to make a binding decision in the near future to take out a loan .
Increased lending due to low interest rates
No question, then, that low interest rates in the credit business fueled the consumer mood of the Germans. This is the result of a recent, representative survey by the market research institute EMNID on behalf of a major German financial institution. If one looks at the results of the survey, it becomes apparent that the willingness to take up loans is particularly pronounced in the 30- to 39-year-old age group. For example, a stately 38 percent of respondents in this age group said they had already taken out a loan with particularly favorable interest rates because of low interest rates.
Low interest rates equal higher loan amounts
The current interest rate situation also clearly shows that around 9 percent of the consumers surveyed are willing to accept significantly higher loan sums. The willingness to borrow could even increase in the future. If interest rates on installment loans and mortgage lending continue to remain so low and exactly after that, thanks to the ECB’s decision to reduce the interest rate to zero, all three Germans would be prepared to complete financing or a loan. Around 48 percent of the 18 to 29-year-olds and 51 percent of the 30 to 39-year-olds would sign a loan agreement without any hesitation, assuming the interest rates remained constant. 17 percent of the participants in the EMNID survey also stated that they would receive a higher loan amount in the future. This would be with 26 percent in the 30- to 39-year-olds, even one in four ready. So rosy prospects for the banking industry … ..and for savers a “valley of tears”?