In recent times, consumer credit is attracting more and more borrowers. This financial product is in full expansion. Last April, the figures exploded with a little more than 6.3% compared to last year. This is partly explained by the appropriations allocated and by the lease with option to purchase (LOA).
Assessment of the increase in consumer credit
According to the French Association of Financial Companies, the total amount of consumer loans in these first four months (from January to April) amounts to about 3.8 billion USD, much more than the previous year . Despite a less promising start, consumer credit is gaining momentum before starting its rise from February. This period marks its great return in production.
It should be noted that between January and April, a 2% increase was registered with credit institutions, ie approximately 300 million USD, of which more than 290 million for vehicle financing. It is mainly thanks to the appropriations allocated which are represented by the rate of 11.8% that the consumer loan has been able to engrave the echelons.
Major protagonists that led to the growth of consumer credit
The main author of the increase in the consumer loan is auto financing. Since January, the purchase of used cars through a credit contributes enormously to this expansion. If an individual wants to own a new car, new or used, that is to say second-hand, but he does not have the means to afford one, he can make a purchase on credit that he will have to repay later. It is an initiative that attracts many people around the world.
Second-hand rental is also responsible for the large expansion of consumer credit. According to statistics, it would represent no less than 14.3% because it is a business that works rather well. Many people are interested in the modus operandi of paying the price of the good in a progressive way. This system facilitates the payment method that can be done in several times. It is therefore normal if the rentals with purchase option concern about 75% of the financing in the context of cars exits directly from the dealer.
Apart from the auto sector, the credits for renovation works and capital goods also play major roles in this climb. These are the people with renovation projects, that is to say having work to do and capital goods to buy that make the most use.