Consumer Credit: The Germans spend their money – Online Loans

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The trend towards online credit has continued to strengthen in the recent past, namely in 2015. More and more consumers are taking advantage of the opportunity to take out an internet loan, thus saving themselves the time in the bank branch and sometimes unnecessary in their view credit. It is now one in five consumer loans that is applied for online in Germany, which is reflected in the review of the banking association for 2015.


Online loans completed by bank customers

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Last year, there were online loans totaling 5.8 billion dollars, which were completed by bank customers. Thus, the rate of Internet loans increased by a whopping 20 percent compared to 2014. Thus, online credit is the business area where credit institutions recorded the largest increase last year. However, it is still the case with internet loans that they can not be fully completed online. The main reason is that the conclusion of a loan in this country still requires the written form, so at least the credit agreements must be sent by mail. With this approach, Germany is definitely not one of the most modern countries, because in various other countries from the euro area, it is indeed possible to complete internet loan in full online. There, bank customers have the option of also concluding the loan agreement online and do not need to additionally send loan agreements by mail. This is also what Jan Wagner, a member of the board of the banking association and CreditPlus Bank for Germany, demands.


What was borrowed for last year?

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The review of the banking association shows, among other things, the purpose for which consumers took out loans last year. In total, private customers and companies borrowed more than 130 billion dollars from the German banks in 2015, which led to an increase in the total loan portfolio to 159.3 billion dollars. Compared to 2014, this is an increase of 6.8 percent and at the same time the largest increase in over six years. If you take a closer look at the use of consumer loans in the past year, cash comes in first with 43 percent and around 23.6 billion dollars. In second place, it is the financing of a car, which is also a frequent use of consumer loans with a share of 41 percent. In addition, consumers spend money in the form of financing on furniture, kitchens, household appliances and computing.