Actually, it is a somewhat grotesque situation that currently dominates the credit market : While the euro crisis is already leading to panic on the stock exchanges and more and more countries increasingly borrow more expensive loans, the market for installment loans (and especially the German) continues to seem an island To be blessed: Even though the interest rate trend in the overnight money and fixed-term deposits is now clearly pointing up, interest rates on loans and loans to private individuals are stagnating. Apparently, the key protagonists ( banks and savings banks) still do not turn on the interest rate screw.
The fact that the consumer credit segment in particular appears to be spared the current upheavals on the financial market for the time being is primarily due to the high level of competitive pressure. The competition that branch and direct banks are providing with savings banks and other lenders is tough. Again, a big advantage for the consumer: if you want to raise an installment loan, you can choose from a variety of loan offerings, and also take advantage of the Internet by easily comparing the standard installment loan product across the market.
Last but not least, most banks fear the negative external impact, which would entail an increase in lending rates : Since many bank customers primarily focus on installment loan interest rates, a rate hike in this area is delayed until it is in fact inevitable. The installment loan applies here as a kind of interest barometer: Turns here a bank all too much on the interest rate screw, many customers may just consider the entire product range for overpriced.
However, most banks still keep a back door for raising interest rates, as the current situation shows. Especially in the case of discretionary loans, there has been a lot of movement lately. Obviously, many banks are raising their disbursement interest rates in line with savings interest rates. The calculus of the credit institutions is quite simple: Since many consumers do not perceive their Dispo anyway as a loan, can take appropriate action almost unnoticed and without major protests.
Clever consumers, however, can stop this negative trend in the credit line in a timely manner by repurposing their collection. As long as installment loans are still so cheap and most banks shy away from raising interest rates, they can consolidate their personal finances in good time. Who knows what the coming months will bring.