The Association of Financial Companies communicated at the end of November on the production of consumer credits by its members in October.
Since March, activity has continued to recover.
Over the month of October, the production of new credits increased by 6.4% compared to October 2014.
Despite an increase of 7.6% on average over the last 3 months, the market is still recovering since cumulative production over 12 months remains 20% below the peak reached in September 2008.
Automotive, LOA boosts results
The financing of new vehicles via an earmarked loan is down 6% while the market reaches + 21.6% compared to October 2014, with car leasing achieving + 52.6%.
Financing via (assigned) car loan for second-hand vehicles was more or less stable (+ 0.6%).
It should all the same be noted that the affected credit is a solution less and less present, whether they are specialized establishments or traditional banks, the personal loan packaged taking largely the ascendancy in the financing proposals.
Financing of the house
October was less favorable with a fall of 0.5% compared to October 2014 for consumption loans for development or equipment. However, production remains positive over the last 3 months (+ 0.9%). In this case also, the data communicated by the ASF relate to restricted loans. Many households use a personal loan to finance them when it is not work. For the latter, depending on the amount and the project, mortgage can be a better solution.
The production of personal loans increased in October by 12.2%. This type of loan is offered regardless of the project to be carried out: equipment for the house, works, purchase of a vehicle, budget envelope, etc. On average, offered up to 72 months (but they can be longer depending on the project and of the borrower’s income), the amount must be less than $ 75,000 like the restricted loans. The rates differ depending on the repayment duration, the project financed and the amount borrowed.
Personal loans vs Restricted loans:
An assigned loan is linked to the expenditure you make: you will need to provide supporting documents to obtain the release of funds. Advantage for the borrower: if the purchase of the financed property does not take place, the financing lapses. This type of loan can be offered to you for the purchase of a property of a substantial amount (such as a car).
The personal loan is more flexible, the documents requested for obtaining the loan are less restrictive and the release of funds is not subject to the finalization of the purchase. By cons you can not go back if the sale does not finalize, the release of funds will not be canceled and interest will be due.
To find out the rate you could get for financing your vehicle, do not hesitate to use our auto credit comparator.
Find your consumer loan at the best rate, it’s easy and free!