According to a recent Best Bank statistic, loans to households continue to increase, but only thanks to the particularly advantageous supply of mortgage loans.
A different progression depending on the credits
With $ 1,131 billion in outstandings at the end of March 2013, loans to households represent more than 58% of all loans granted to the French non-financial sector, and posted a growth rate of 1.9% compared to 2012.
On the one hand, mortgage interest rates have never been so low (3% on average for April 2013 according to the Housing Credit Observatory), resulting in a windfall effect which compensates for the still high prices in the sector immovable.
However, not all types of loans are on the rise. Indeed, if the outstanding mortgage loans now stand at 881 billion USD, an increase of 2.5% over one year, consumer loans, meanwhile, suffer a loss of almost 2% to 158 billion USD.
Consumer credits seal the statistics
The reasons for such a difference are relatively obvious. On the one hand, mortgage interest rates have never been so low (3% on average for April 2013 according to the Housing Credit Observatory), resulting in a windfall effect which compensates for the still high prices in the sector immovable.
On the other hand, the consumer credit market is strongly dragged down by the combined effects of the crisis and the various legislative measures in favor of greater consumer protection, in particular as regards revolving credit.
The repurchase of credits does not influence the outstanding amounts
Lastly, it should be recalled that the repurchase of loans, formerly relatively confidential or reserved for borrowers in difficulty, is becoming a common management practice for a large number of households anxious to preserve their purchasing power, or even to increase their capacity for short-term financing.
Without significantly modifying the amount of outstanding loans to households, the repurchase of loans nonetheless remains one of the causes of the significant drop in the number of loans taken out by individuals.