Europeans are increasingly turning to consumer credit. Here are the latest figures.
Consumer Credit: Promising Figures
Consumer credit or personal loan is witnessing exceptional growth this year. Furthermore, with automobile purchase options (car leasing), the trend continues to rise.
Nearly 5% Growth Annually
In the second quarter of 2017, consumer credit exceeded 163 billion euros in Europe. The annual growth rate is about 5% (4.7% to be precise). Although this figure is down from the first quarter (which was +5.8%), personal loans are thriving.
In Belgium, there is currently a slowdown. The figures are below the eurozone average (+5.9%). The BNB reports a growth of 6.2% in the first quarter and 2.2% in the second quarter of 2017.
Each Type of Credit Shows Its Own Variation
There are two types of consumer credit: amortizing credit and revolving credit. The first is a standard amortizing loan with an amortization schedule and monthly payments. The second is another form of personal loan, akin to a line of credit. Only the borrowed portion will be repaid. The funds, at your complete disposal, can be used for immediate needs.
Compared to November 2016, amortizing loans have grown by +6.1%. Revolving credits are plummeting, with 2.6% compared to -1.9% just three months ago.
Belgium: Consumer Credits Declining
For the two aforementioned types of personal loans, the rates seem to be lower compared to the eurozone. While in Europe, the average rate is 5.62%, in Belgium, amortizing credits have a rate of 3.72%. Revolving credits are at 8.5%, with 5.58% from banks and 12.57% from other institutions.
Leasing Breaks Records
Lease agreements with a purchase option (LOA) or leasing are driving this growth in personal loans. There is a noted +25.3% increase compared to 23.5% last year.
