The evolution of consumer credit production is generally on the rise. However, there are still some disparities within the same type of loan: revolving credit. This is revealed by the detailed study of the Banco de France.
The evolution of consumer credit
Consumer loans rose to + 6% in June 2018 against + 5.5% in March. This growth is mainly driven by depreciable loans + 5.5% against 5% in March. The production of leases is still important: + 30.8% and corresponds to the majority of car acquisitions.
The revolving credit varies depending on the lender
Since June 2016, revolving credit rates have stabilized around 8.4%. Nevertheless, a gap is widening in level and evolution between the rates of specialized institutions and those of banks:
Specialized institutions are higher in level and increase by 130 basis points (12.2% in June 2016 to 13.5% in June 2018).
Banks are at lower levels and are down slightly by 10 basis points (from 5.5% in June 2016 to 5.4% in June 2018).
The share of total outstanding revolving loans distributed by the banking channel continues to increase, at the expense of specialized institutions.
The new own loan remains the credit at the lowest rate. It allows financing a project at a lower cost. Consumers credit professionals are looking for the best market rate. They study the borrower’s file and then question the banks to find the establishment offering the best offer. Using a professional loan can finance an acquisition in the best possible conditions.