Sustained demand for loans to individuals


The demand for credit to individuals is on the rise over one year. Good vitality partly explained by good rate dynamics, despite a difficult economic context.

Loan outstandings on the rise. In 2018 is a promising year for the production of new credits. Households take advantage of low market rates to take out loans whose costs turn out to be competitive. The trend is marked on mortgage loans as well as on consumer loans. The outstanding amount of housing loans, for example, increased by 5.6% over one year in June, to amount to 987 billion dollars. Consumer credits also benefit from this vitality. Despite declining purchasing power, purchases of consumer goods financed on credit increased 7.4% year-on-year in June. The total outstanding of consumer loans totals 200 billion dollars.


Competition in the banking market facilitates access to loans

personal loans

The explanations for the increase in demand for mortgage loans can come from low rates, but also from the offers offered by market players. Indeed, credit institutions do not hesitate to sacrifice their margin to develop their client portfolios and perpetuate the relationship. In July and August, the average borrowing rate was 1.53% according to the Good Lenders Statistics. Loans are therefore strategic products for reaching potential customers.


A difficult economic context

A difficult economic context

In addition, the return to higher inflation has inevitable repercussions on the purchasing power of households. With a 2.6% year-on-year increase in July, households are feeling the brunt of the price increase. Consequently, the sustained demand for consumer loans may result from this situation. In fact, to support their daily lives, some households can use loans. The loan thus becomes a spare wheel to meet the cost of living. And in this difficult context, households tend to turn to precautionary solutions by saving their resources. To then position themselves towards financing rather than draining their cash.


The automotive market contributes to this good momentum

The automotive market contributes to this good momentum

Finally, it should be noted the notable performance of the new car market but also the second-hand one. The purchase of a vehicle is also the first motivation when taking out a loan intended for consumption.


Home loan: are couples favored?

When applying for real estate financing, the bank will ensure that the borrower has all the resources necessary for the proper repayment of the credit. These resources are generally more important for a couple of borrowers and can facilitate obtaining a loan, especially if they have a permanent contract. So, do you have to be a couple to obtain a mortgage?

Basically, mortgage loans are one of the cheapest forms of loan procurement, since their security is guaranteed by pledging a corresponding property. With a mortgage lending value of up to 60 percent, you usually get a very low interest rate, since with higher mortgages the risk for the lender increases, an interest surcharge is charged for mortgages over 60 percent. 
It should also be noted that a mortgage loan is usually a long-term contract and that termination can usually only be carried out at very high costs. It is therefore advisable to take out prepayment protection, which enables, for example, a free change of debtor, a pledge or the transfer of the mortgage loan.

Mortgage loan: more collateral for two

Mortgage loan: more collateral for two

According to a recent study, 68% of borrowers with a mortgage are in a relationship.

This figure shows that on average two borrowers out of three take out a mortgage with the help of their spouse and can be explained by the fact that a co-borrower providing additional guarantees improves the chances of obtaining financing.

However, a contract of employment in CDI is generally necessary for the couple in order to bring enough guarantees for the home loan.

Mortgage: older couples

The study also shows that if we focus on the oldest households (over 60), the proportion of couples is even higher and reaches 73%.

This figure is the same as for middle-aged households (30 to 39 years) and also reaches 73% but gradually decreases between these two brackets.

Conversely, this study shows that only 57% of borrowers under the age of 30 are in a relationship. This figure can be explained by the fact that the young age of the borrowers does not necessarily allow them to have found a co-borrower but also by the fact that at the start of their career it can be difficult to obtain a mortgage.

Real estate purchase: favored couples

With the results of this study, it is possible to demonstrate that a couple household will find it easier to obtain a mortgage than a single borrower who must bear all the risks.

A couple’s household will be able to spread the risk and better prevent them from the fact that their overall income will generally be higher. Also, the contribution of the loan can be more important which can allow to negotiate its credit in good conditions.


The production of mortgage loan redemption decreases

The term mortgage loan generally includes all those loans that are secured under land register law. In banking, a loan can be secured by real estate using a mortgage, which is one of the mortgages. However, not only is the land lien commonly referred to as a loan, but also the mortgage associated with it. Accordingly, a mortgage primarily serves as a means of securing a loan or a loan and is usually justified by ownership of a property, a property or the ground lease. It should be noted that the lender has the right to request payment of a contractually stipulated amount of money from the property, even if this results in the foreclosure of the property.

The Good Lenders Bank has once again published data relating to housing loans in France. The share of home loan repurchases in new financing continued to fall in April.

The share of home loan repayments fell in April

Since January 2017, banks and real estate experts have noticed a slowdown in renegotiations of home loans and consolidation of mortgage loans in France. In January, loan repurchases represented 61.58% of new loans taken out on French territory. In April, this figure declined and reached 49.6%, which means that the share of mortgage loans took over compared to renegotiations . This situation had not happened for at least 6 months.

The market for home loan consolidation seems to be slowing down, but it is still advantageous to benefit from the operation because of the low rates . A borrower who has taken out various loans to finance projects can quite opt for this operation in order to lower the amount of his monthly payments. The repurchase of credit allows the household to reduce its debt ratio and reduce the monthly burden of its financing, while having the possibility of allocating an additional amount to finance a trip, a property or a car for example.

Real estate credit remains as dynamic as ever

The bank scales allocated to housing loans increased in April, the rate being on average at 1.57% against 1.50% in January. However, this increase is very slight and does not alarm households who want to become owners or who want to buy property a second time.

Despite this slight increase, the terms for granting mortgage loans are very attractive and borrowers do not hesitate to make an appointment at several banks to compare offers . It is in particular for the current advantageous conditions that the loans granted are accelerating in France.

Note that France is one of the European countries which currently benefit from such attractive terms, especially regarding mortgage. The rates are fixed in most cases and allow many households to access property at a lower cost.


Consumer credit: What protections?

The decision to make such a serious commitment, regardless of whether it is a mortgage, consumer loan or even a holiday loan, should be approached with caution and calmness. Spontaneity will be the worst advisor in this case.

You should get to the case with a lot of time, calculate everything coldly, and calculate it exactly. There is also no point in overly suggesting advertising slogans, according to which each offer looks very attractive. Below are some comments that should be taken under the microscope in order to safely take a consumer loan.

When taking out consumer credit, a borrower has rights defined in the Consumer Code. These measures are intended to protect the consumer from unfair commercial practices.

The right to transparency

A consumer credit is a loan which does not exceed $ 75,000 and which does not report to the purchase of real estate. To discourage questionable business practices, the legislator has taken steps to enhance transparency for borrowers. Thus, credit institutions have the obligation to provide the necessary information visibly to consumers. The right to information is therefore fundamental since it makes it possible to inform the requester via clear, precise and correct information.

This therefore explains why we always see, on advertising spaces, such as the APR or “a credit commits you and must be reimbursed.” Check your repayment capacity before you commit “. The borrower must therefore have access to all of the information before its final signature, to protect it from a certain opacity which may have bad repercussions for the future.

The withdrawal of his request

When signing a consumer credit, a borrower has a mandatory period to start thinking. Therefore, he has 14 days after acceptance of the offer to withdraw from the credit institution. The period can be reduced to 8 days depending on the urgency of the request, and especially after the client has made the request before signing the loan offer.

The possibility of early repayment

A borrower can change his schedule at any time at his request to the lender. Indeed, it is possible to repay part or all of its credit without any authorization from the lender.

Inserted into the Consumer Code, this right turns out to be more complex to implement. To suspend the monthly repayment of his consumer credit, a borrower must appeal to the District Court to justify a negative development in his personal situation. He must prove that he cannot reimburse the loan for a valid reason such as job loss, over-indebtedness or deterioration of health. After approval, only the credit can be suspended there.

Bad credit

Bad credit loans -Get online loans for bad credit guaranteed approval

Request a bad credit loan and wonder how that works? We list it for you so that you get a good idea of ​​it. For example, there are several bad credit loan providers active, where you can go if you meet the conditions. You can apply for a bad credit loan if, for example, you have a fixed income that is high enough. A BKR check will not take place there, so the provider has no insight into any other credits that you have.

Get online loans for bad credit guaranteed approval

Mini loan providers

There are several bad credit loan providers active where you can apply for an online loan for bad credit guaranteed approval. Applying for an online loan for bad credit guaranteed approval is very simple, you can simply go at website for this. You can request a small credit for a maximum of a few hundred euros. You can request the mini loan without BKR testing. This means that you have the money quickly available after approval. Any other loans or (old) arrears do not come to light, so that you do not have to worry about that.

Conditions for a mini loan

Conditions for a mini loan

Do you want to apply for a mini-credit without a payslip ? Unfortunately, this is not possible in most cases. That has to do with the fact that you need a steady income to apply for the credit. The lender thus ensures that you can, for example, use the salary that you receive to repay the loan amount. In this way you ensure that you can repay the money properly on time, so that you do not get into trouble. You can apply for a mini-credit if you also have the Dutch identity, you live in the Netherlands and you are, for example, the right age (often 18 – 65).

Request online mini credit

Request online mini credit

You can apply for a mini-credit online, you don’t have to leave home. Instead, it is sufficient to indicate that you would like to use a mini loan. Do you want to borrow € 500 or borrow an amount of, for example, € 1,000? You can do this by means of the mini loan, you don’t have to go to an official bank for that. You can request the mini-credit online, after approval the provider will ensure that you have the money in your account within a few hours up to a working day.

Payday Loans

Borrowing for a car with the payday loan

Borrow money for buying a car

You want to buy another car and do not have enough money in your account to pay for it in one go. If your car can still come along for a while, we recommend saving even further. But if you really need a different car or if the car of your dreams is coming up for a very attractive price, then borrowing for a car is an option.

Borrow money for a car

If you want to borrow money for a car, the mini loan is often not the right way to do this. Unless you want to borrow an amount up to a maximum of 1000 euros, but generally this will not be sufficient. If you are going to borrow money for a car in most cases, you will end up with the payday loan loan. This form of loan offers you a certain amount of security and you can determine yourself that the loan has been repaid while the car is still in your possession. In our opinion, the best car loan is the payday loan loan, you have a fixed interest rate, a fixed term and you cannot withdraw extra money in the meantime.

Mini loan for car

Mini loan for car

You can take out a mini loan for your car, but that is if you have to pay an expensive repair. If your car is at the garage and the bill is more expensive than you expected in advance, you can take out a mini loan. You then temporarily have extra money to pay the bill for the garage. Because the duration of a mini-loan is relatively short, namely between 15 and 45 days, you must also pay back the borrowed money reasonably quickly. So if the end of the month is not yet in sight and you want to borrow 500 euros, then the mini loan is the preferred form of loan for you.

Revolving credit for a car

Revolving credit for a car

If you take out a revolving credit for buying a car, you run the risk that you are still paying while you no longer own the car. With a revolving credit, the interest and the term are not fixed. With the revolving credit it is also possible to withdraw extra money in the meantime.

You will understand that if you withdraw extra money, the term of the revolving credit will be extended. On the other hand, the advantage of the revolving credit is that you can repay extra so if you have some extra money you can deposit it. Another advantage of the revolving credit is that you can transfer without penalty. If you see a lender with a lower interest rate, you switch so that you save on your monthly payments.


It is worth landing your long-term fixed loans now!

Long-term fixed-rate loans are becoming available at more and more banks: as the current base rate may remain in place until the end of 2017, mortgages are typically taken for several decades.

However, we cannot calculate our interest rate over this time period, but a fixed rate loan will allow us to calculate our installments throughout the term.

Short-term loans ( such as personal loans, consumer loans, and possibly higher commodity loans ) are worth floating interest rates, as the Daisy Bank announces that the current base rate will remain at the end of 2017 (1.35%). However, for long-term loans of 15-20 years, you should not even consider choosing a fixed installment . Although the base rate is low now (and it is reported to remain so), experience from the past 20 years shows that the current situation may change in the next few years. Fixed-term loans are a common product, but real security can come from fixed-term loans .

What about 10 year fixed rate loans?

What about 10 year fixed rate loans?

10-year loans are typically non-fixed interest rate loans, but due to the 10-year interest rate period they can also provide security . If you choose a fixed rate loan all the time, you may want to consider at most insurance coverage (such as unemployment or life insurance). However, for loans with a shorter interest rate period, it is worthwhile to start a home savings fund with a maturity equal to the interest period, so that you can prepay your loan at the interest rate turnaround. Then we can decide:

  • the installment is reduced or else
  • the maturity is reduced.

Of course, a combination of the two is also possible: with a shorter maturity, we choose a lower installment . Reducing the installment installment can be beneficial mainly if our monthly installment increases significantly after the interest rate turnaround.

A lot of people are affected not just the bar listers. Why is that? Because you may need a larger amount of freely available money that you do not necessarily want to use on the financier’s nose…

Long-term fixed-rate loans are becoming available at more and more banks

As the current base rate may remain in place until the end of 2017, mortgages are typically taken for several decades. It can be said that so far in 2016, so far, the loans have been all about CSOK and home loans. However, a wide range would still need traditional free-to-use loans, especially when it comes to BAR listings.


Law change for quick loans

Criticism of fast loans

Criticism of fast loans

The criticism of fast loans has been harsh since SMS loans entered the Swedish market in 2006. These criticisms have sometimes been exaggerated but sometimes also justified. Now, the fast-loan industry is facing a major change, which is primarily aimed at strengthening the security of borrowers. What does the new law mean and what changes can you as a borrower expect? They was going through the new fast loan law and what it brings into the high-cost credit market.

SMS loans are often referred to as the black sheep in the loan industry. Although there are aspects of fast loans that can rightly be criticized, however, much of the criticism is unjustified. The biggest argument for those who oppose these high-cost credits is usually the high effective interest rate.

Read more here to understand why the effective interest rate gives a misleading picture of the cost of a fast loan.

One argument, however, is justified is that some fast loan companies have previously been a little too generous in approving loan applications. This has meant that borrowers with low credit ratings, which sometimes have already been heavily indebted, still have their loan applications approved .

Borrowing with debt in itself does not have to be a negative thing, but you should always be aware of the stress that a loan creates on your finances, which should now be easier with the change of law.

To counteract this, the government earlier this year submitted a proposal for amendments to the Consumer Credit Act to create safer SMS loans and a safer market for you as a borrower. This proposal has now been approved by the Rigdaks and on September 1, the new law comes into force, which creates more security for borrowers.



On January 18, 2018, the Government submitted a bill to Parliament, Bill 2017/18: 72 . The main content of the bill was that the government proposed a more responsible market for high-cost loans and fast loans. By first and foremost introducing an interest rate ceiling and a cost ceiling for this type of credit, the government wanted to increase the security of borrowers.

Consumers who often apply for fast loans are also the group that is also at greater risk of encountering difficulties with repayment. If you, as a borrower, have less financial margins or have previously had difficulties with repayments , you probably belong to the group of consumers that the government wanted to help with its bill.

The bill contained a number of proposals for amendments to the Consumer Credit Act to give this risk group and also other borrowers better conditions for online credit. This change in the law would result in fewer people taking debt by feeling compelled to take these expensive quick loans.

The new law, which will now come into force on September 1, 2018 , sets the stage for the long investigative work that has been going on since April 2015. The law will protect people from over-indebtedness and also place high demands on fast-bank companies and their marketing.

The proposals

The proposals

Here is a brief description of the proposals submitted by the Government to Parliament. The most important, the bill, was approved on May 2, 2018 while the eight motions were rejected. That in itself is no loss, as the most important improvements to the law are presented in the bill.

The Government’s proposal

  • Bill 2017/18: 72 – Interest rate ceilings and other measures in the market for fast loans and other high-cost credits

What does the new law mean?

What does the new law mean?

With the new amendment to the Consumer Credit Act, several changes will be made at the end of the month. Among other things, a cost ceiling is introduced and also an interest rate ceiling on SMS loans and high cost credits. The requirement to alert borrowers about the risks of expensive loans is also tightened so that fewer people are over-indebted through these simple loans.

Claims on the marketing of these loans are also tightened in the new law. Consumer credit under this regulation must be moderate and must not be designed to attract people to hasty and unthinkable decisions.

In terms of cost, you as a consumer benefit from this change of law. The cost ceiling introduced means that a loan must not cost more than 40 percentage points above the reference rate. This reference rate corresponds to a repo rate of the year, and is decided by the government each year just before Christmas.

The reference rate does not include any fees that may apply for the loan, such as notification fees or setup fees . In other words, this interest rate is nominal.

Something that is also a central regulation of the law change is that a loan must never cost more than the double sum of the loan amount. This adjustment includes both the interest rate and the repayments on the loan.

New loan cost

The new cost ceiling will thus make that the total cost of your loan or high cost credit should never exceed 100% of the total loan amount . If you take out a loan of SEK 10,000, for example, you should never have to repay more than SEK 20,000 in total. This includes fees, interest rates and any collection fees and more.

Also worth noting is that this is only applied for high-cost credits. Therefore, if the loan has a lower effective interest rate than 30 percent , it will not be classified as high-cost credit and therefore not regulated by the new law change.

Thus, the cost of capital for private loans is not included in the change in the law and can therefore still have a capital cost that is significantly higher.

What loans are affected by the law change?

What loans are affected by the law change?

In other words, the new law applies only to fast loans, online loans and high-cost consumer loans. The criteria for this is that it should be a loan without collateral and have an effective interest rate of at least 30% in addition to the reference rate.

This means that other loans, such as mortgages, are not included in the law change. Nor are credit cards covered by the new legislation.

Disadvantages of the new law

Disadvantages of the new law

This upcoming law change has been known in detail since the decision was made on May 2 this year, but as the investigation has been going on for several years, it has been known that a change stood for the door. Because of this, several fast-loan companies have recently taken this step into account, which is a positive thing, of course. For you as a consumer, however, there is a risk of some minor disadvantages now that the law comes into force.

In the past, fast loans have been tightly regulated and therefore, among other things, have been very clear about going out with the total cost of the loan, which fees will be charged and such. Regardless of what you consider about sms loans and high cost credits, they fulfill a great function for the consumers who need to use them and borrow money quickly in unforeseen events.

Now that the lenders have raised their heads for the new law, in many places it has meant that several players have converted their fast loans to online loans . The disadvantage of this is precisely the fact that it becomes much more difficult to know in advance what a credit will cost in the end compared to a micro loan where you directly get the total cost of the loan presented to you.

Since Sweden is facing a choice of less than 2 weeks, it may of course be of interest to know where the various parties were on the issue of fast loans. Finally, here follows a brief summary of what the Rigdaks’s various parties thought of Bill 2017/2018: 72 “Interest rates and other measures in the market for fast loans and other high-cost credits” in their speeches.