The installment loan, through low interest rates he makes dreams come true. Anyone who has closely followed the steps of the EB Bank sees historic lows in policy rates. At present, German banks are still using the cheap loans from the central bank for recapitalization. But soon the consumer will also be offered cheaper loans.
Installment credit and low interest rates – the key interest rate has always been crucial.
The installment loan is heavily influenced by low central bank interest rates. This realization is not new and no secret. What is new, however, is the delay with which the extremely low base rates are passed on by the banks. As well as the reason for the low interest rates, so is the time delay in the euro crisis justified. The Basel III agreements forced banks to recapitalize. By 2013, the agreements will have to be implemented gradually by the banks.
People who want to borrow more, for example to build a house, should wait a while. Sooner or later, key interest rates will also affect long-term loans. The builders should not currently have fear of rising interest rates. An increase in the EB’s current interest rates is at least very unlikely. In July 2012, signs point to a further reduction in the interest rate. A reduction of currently 1 percent to 0.75 percent is expected.
Basel III will not only have positive effects for borrowers.
As is already clear today, people on lower incomes are barely able to cope with the growing demands of lending. The loan is already rejected for low credit rating restrictions. Credit security has become the top priority. In the future, fewer installments and low interest rates will be available from established banks.
Anyone planning a bigger investment today, but only having a lower income, faces special challenges. A regularly overdrawn current account, he should not afford to maintain the credit rating in the future. The Dispo set to zero for this is not advisable. Even a single return debit due to lack of coverage can have serious consequences. If the return debit is reported to the credit bureau, then the credit rating is automatically on the ground. A negative credit bureau entry is a knockout criterion for lending.
The most important thing at a glance:
- The key interest rate, which is also crucial for lending rates, reaches historic lows.
- A reversal of the trend is not expected at present.
- With large investments, however, something should be maintained as far as possible.
- Due to the bank recapitalization – Basel III – the banks do not pass on the favorable interest rates yet.
- It will be more difficult for low-income borrowers.
- Those who want to remain creditworthy even with low incomes must now act prudently.
- Installment credit and low interest rates will depend even more than today on creditworthiness.