In 2015, the French regained a taste for consumer credit. This is at least what reveals the last report of the French Association of Financial Companies (ASF). The association thus notes an increase in consumer credit activity of 5.9% in one year.
A very linear progression over the months: “+ 2.2% in the first quarter in annual variation, + 6.4% in the spring, + 7.3% in the third quarter and finally 7.8% in the fall”, specifies the ASF in its press release.
Personal loan: preferred form of financing for the French
With 12 billion USD loaned last year by specialized establishments, personal loans represent 34% of consumer credit activity. It is thus the preferred form of French loan to finance their projects.
And for good reason, the personal loan allows you to borrow the amount you want for the project you want without having to provide proof of the product or service being funded. It still has a drawback: it takes longer to obtain a revolving loan.
Revolving credit continues to slow
Already in decline since the entry into force from 2010 of the various legislations aiming to supervise its use, the revolving credit decreases again this year. The ASF thus notes a drop in its production by 3.5% compared to 2014 for a total of 10 billion USD loaned. Nonetheless, revolving credit remains the second preferred form of loan for the French.
Revolving credit is particularly appreciated for its flexibility: once obtained, the borrower can use it when he wishes for his daily purchases. On the other hand, it presents a much higher rate than the personal loan.
The big boom is to be sought in terms of new auto financing: + 20.7% compared to 2014. This figure includes both the production of car loans and that of rental with purchase option (LOA).
“The dynamism of these financings is explained by the strong development of LOA operations which increased by 46.7% over the whole of 2015”, underlines the ASF. This new financing method makes it possible to rent a car for a given period before having the choice between returning it or buying it. A scheme that appeals to more and more individuals who want to use rather than own.
The fine figures for equipment credit
The financing of household goods (household appliances, multimedia equipment, furniture, etc.) has not escaped the positive development of consumer loans. They increased by 6.6% compared to December 2014.
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