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September 22, 2019
Finance

Taking the Loan: The Most Important task for You

Consumers are directed to an offer that ensures that the amounts are absorbed quickly. This is a leading factor in choosing a quote for 31% of those who enjoy fast credit. The most important are those who place a bid on an offer from a company with which they have already had a relationship (28%). The results of the survey this year show that trust and good past experience is among the main things that consumers pay attention to when borrowing from a non-bank institution. For fast credit in germany this is the best option that you can have.

Annual Percentage

The annual percentage rate of charge ranks among the last significant factors for those who have fast credit. Unfortunately, after the changes in the Consumer Credit Act, this indicator stopped being a guide as to whether or not a single offer was favourable. From this point of view, it is not surprising that the respondents ranked the APR in 7th place in importance.

  • Although the APR is not particularly relevant to consumers, they consider it high and very high. According to 34% of respondents with quick credit, the total cost of the last disbursed loan is high. Almost as many believe that the APR on their most recent loan was very high (33%).

The amount of the loan for the beneficiaries rarely exceeds 1000 $ (42% with a loan up to 400  $ and 39% with a loan from 400 to 1000 $). These data are quite logical given the fact that banks provide financing for amounts greater than $ 500-1000. It is often the case that consumers have no real alternative when they urgently need a small sum of money.

For the Consumers

Consumers who have or have paid off two quick loans make up just over 60% of the eligible users. It is noteworthy that the second loan is slightly higher than the first, with those who have a loan of  $ 400 to 1000 being 43% of all consumers with a second loan. This behaviour is a direct result of the policies of some of the fast lending companies. According to her, first-time borrowers cannot borrow amounts in excess of a certain amount, which is usually a low amount. Thus, only when applying again, the procedures themselves are already much easier and the maximum amount that can be borrowed is much higher than that given to new clients of the company.

According to the survey, consumers with credit from a non-banking institution are not aware of the amendments to the Consumer Credit Act, which came into force on 24.07.2014. They represent 63% of this group of consumers. Part of the changes affecting users of non-banking institutions is that the minimum threshold of amounts in the Law, which was $ 400, was removed. With this change in the scope of the law, loans up to $ 400 were also included. The changes set a ceiling on the overall appreciation of loans. Under the new rules, the value of an APR on a loan cannot exceed five times the statutory interest rate for late payment (ADR + 10%), i.e. 50% so far.

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