The latest data provided by the Bankate have revealed an increase of more than 2 billion euros in the amount of consumer loans granted in 2014 to Spanish households. The total amount of loans given last year reached 10,447 million euros, a figure that far exceeds the 8,437 million granted in 2013, representing an increase of 23.82%, according to AskCash.
Consumer loans with an initial period of fixing the interest rate of up to one year (this would include, for example, a 10-year loan with an annual reviewable interest rate) have been the ones that have rebounded most with an increase in 28.24% over the previous year. They are followed by loans with terms of more than 5 years, whose amount during 2014 grew by 23.01%, and those granted with terms of between one and five years, which rose by 21.92%.
If we focus on the total money granted, loans with terms of between one and five years totaled a total of 4,616 million euros, those over five years, 3,111 million and those of one year or less, 2,720 million euros.
This is the second consecutive year in which the amount of new consumer credit operations has grown. In 2013, growth compared to the previous year was 6.45%, a figure that has nothing to do with the 23.83% recorded during the past year.
The APR of low consumer loans
In 2014, the average Annual Equivalent Rate (APR) of consumer loans was below 9%, specifically 8.55%, according to the Bankate. A difference with respect to 2013 of 0.85 points down, when the APR was 9.40%. If we look at the average TEDR interest, equivalent to the APR, but not including commissions, in 2014 it was 7.57% while in 2014 it stood at 8.58%.
The interest on loans is not the only one that has dropped, so has the interest on deposits, although much higher. If, in the case of consumer loans of Spanish households, the TEDR decreased slightly more than 11% last year with respect to the previous one, the difference between the TEDR of 2014 and the 2013 of deposits was 57% a The decline is 0.64%. Some data that, on the other hand, do not surprise either.
Since the Bankate limited the rates of deposits a couple of years ago and the EB set official interest rates at historical lows, 0.05%, the profitability of deposits has not stopped decreasing. After all, why banks are going to pay high interest to families for their deposits when they can be financed almost “free” in the EB.
Mini-credit companies proliferate
Private equity companies specializing in the granting of fast loans have proliferated in recent years as a result of increasing difficulties in accessing traditional credit. And it is that when it comes to getting not too high amounts, microcredits, which, on the other hand, are not cheap, have positioned themselves as an alternative to get liquidity. And, in some cases, in almost the only viable alternative, as in the case of people without payroll or included in delinquent records such as Credit Institutions.