Conso credit: the ever dynamic market according to the Banco de France

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The Banco de France (BdF) confirms the figures of the French Association of Financial Companies (ASF). The consumer credit market is doing well, with year-on-year growth boosted by car option leases (automotive LOAs).

An increase of nearly 5%

An increase of nearly 5%

The triumph of 163.6 billion euros, is what weighs the outstanding consumer credit for individuals in the second quarter of 2017, an annual growth of 4.7%. While the rise slows (+ 5.8% over the first 3 months of the year), but the sector continues to show a good momentum.

In comparison with European countries, France is however below the average of the euro zone (+ 5.9%). And very far from its Spanish neighbors (+ 16.8%) and Italian (+ 9.3%).

The figures of the BdF echo those published for several months by the ASF. The association recorded an increase in consumer credit production of:

  • 6.2% in the first quarter of 2017;

  • 2.2% in the second.

Different variations according to the credits

Different variations according to the credits

But not all types of consumer loans move in the same way. While depreciable loans rose by + 6.1% year-on-year (+ 7.3% in March), revolving loans fell by 2.6% (-1.9% 3 months earlier).

A depreciable credit and a revolving credit, what differences?

A depreciable credit and a revolving credit, what differences?

Depreciable credits? Revolving credits? The first are simply classic loans with maturities that you pay every month. This may be for example a personal loan or an assigned credit.

The revolving loan is a reserve of money made available to borrowers. Specifically, you are allocated a sum and you use it as you wish (in part or in full), and whenever you want. You only repay the amount spent.

This financing makes it possible to respond immediately to a punctual and urgent need. For example, the purchase of a new washing machine to replace the current broken down. Or the repetitions of your car fallen in the road.

Consumer credit rates down

Consumer credit rates down

The trend in interest rates is down for both revolving loans and depreciable loans:

  • The first are established in June at 3.72% (5.62% in the euro zone) on average;

  • The second is 8.5% (5.58% via banks and 12.57% by specialized institutions).

Good to know
To get an idea of ​​the evolution of current consumer credit rates, do not hesitate to consult our barometer of consumer credit rates.

Financial leases are booming

Financial leases are booming

Here again, the figures of the Banco de France join those of the ASF. The leases, also called rentals with purchase option (LOA), boost the consumer credit market, especially that of auto credit.

Admittedly, the volume remains well below the depreciable loans or even revolving loans: 10.5 billion, against respectively 114.2 billion and 19.2 billion.

But the growth of the LOA is unequaled, and it has even accelerated compared to March: + 25.3%, against 23.5%.

Why this success? It must be said that the LOA presents an interesting solution alternating rental and purchase. For example, you need a vehicle but you do not have the necessary funds. The LOA will allow you to rent the vehicle of your dreams, then at the end of the rental period, you will have the opportunity:

  • to return the vehicle to the leasing company;

  • to buy the vehicle. You will have to pay the residual value of the vehicle.

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