In the first quarter of 2018, consumers in Germany borrowed 27.17 billion euros. Those who completed their loan on the Internet paid on average 1.85 percentage points less interest than the national average. Had all borrowers completed their loan on the internet, they would have saved a total of 612.1 million euros. This is shown by data from the Bundesbank, Schufa and the credit portal smava.
Alexander Artopé, co-founder and CEO of smava
“Few are aware of how large the price differences in loans are even in the current low-interest phase. That’s why we create transparency and want to encourage consumers to compare their credit prices, “says Alexander Artopé, managing director of smava.
Installment loans were on average more favorable in the first quarter of 2018 than in the annual average for 2017. According to the Bundesbank, the annual average interest rate on installment loans was 5.64 percent. This is minus 0.11 percentage points compared to the annual average for 2017. The effective annual interest rate for loans concluded on the Internet fell even more sharply. According to information from smava, it fell by 0.29 percentage points to an average of 3.79 percent in the first quarter of 2018. In the first quarter of 2018, online installment loans were 1.85 percentage points cheaper than the national average.
According to information from Schufa, the average installment loan amounts to 8,854.60 euros and has a term of 45.6 months. In the national average, it cost in the first quarter of 2018 on average 977.70 euros in interest. The average installment loan on the internet cost an average of 655.38 euros in interest during the same period. That’s a price difference of 322.32 Euro (33%) per loan. Adding up the price difference per loan to all new installment loans (1.9 million), which were newly concluded in the first quarter, according to Schufa, it becomes clear that the savings potential amounts to a total of 612.1 million euros.
According to Schufa, an average of 1.46 loan offers are compared in Germany before a loan is concluded. “That is very little compared to the total loan offer. This is also related to the fact that the comparison of branch credit offers is complicated, unpleasant and hopeless. I have to go from branch to branch. Always reveal me to a stranger. And in the end, no matter how many stores I visit, I never have a comprehensive overview, “says Artopé. Without knowing it, many consumers pay too much for their credit.
According to a GfK market study on consumer and motor vehicle financing on behalf of the Banking Association, the share of credit on the Internet has increased since 2015 from 21 to 27 percent in 2017. “More and more consumers realize: On the Internet, I get the same or even better performance on more favorable terms. So I benefit from the credit on the Internet, “says Artopé.
“If you only go to a bank, you usually pay too much money,” says Artopé. Banks are often focused on selling their own loan products. “A comparison of several banks is therefore very rewarding.” Who does not go from branch to branch and every time wants to reveal strangers, can use credit comparison. With them you can compare several loans from different banks. According to the portal, in the case of smava, there are currently 70 loans from 25 banks.