With rates that are becoming more and more attractive, the French still use consumer credit. For some households, this solution has even become almost a habit with each need. A situation closely followed by the current authorities.
Consumer credit: a beneficial product for banks
Compared to other bank loans, such as the mortgage for example, consumer credit remains the most attractive product for the bank. Even if rates are falling, the high demand numbers allow lenders to keep their liquidity always on the move. Which is also the goal. In addition, with shorter repayment periods, the borrowed money can quickly be reinvested in other areas. This is far from the case of mortgages which generally represent a high risk rate for banks.
Today, the banks are then putting forward their consumer credit offer, on the one hand to meet customer needs, than to remain competitive on the other. As a reminder, a groupama consumer loan is a loan granted to an individual in order to finance various purchases of goods and services, or other more important investments, such as the refitting of a house, etc. To find out more about this credit, visit this page.
The consumption credit of French households in figures
According to reports from the Banque de France, the number of individuals using consumer credit is constantly increasing. Over the past six months, this upward trend has been confirmed with a rate of + 5.7% between April 2019 and June 2019. A rate which continued to climb during the following quarter with an increase of 6, 7%.
Faced with this situation, the authorities of the High Council for Financial Stability were rather concerned. Indeed, they fear a strong uncontrolled increase which could have a negative impact on the economic and budgetary situation of the country. Faced with this, the banks remain confident and continue to grant personal loans to consumers.
The worrying setbacks of consumer credit
With the attractive conditions of access to consumer credit, households generally have no difficulty in accessing it. And the deliberation of the requested sum does not take time. A real boon for consumers.
However, this advantage has its share of drawbacks. And by dint of subscribing and still subscribing to several debts, the consumer could accumulate monthly payments and fall into a situation of critical over-indebtedness.
Despite this, the Banque de France says that this upward trend is not yet ready to stop. And we should still expect an increase in the numbers in the months that follow.