Interest consumer credit | Interest consumer credit

Interest rates below zero and discounts 

Interest rates below zero and discounts 

Competition for consumer credit is exacerbated. Our news The private lending business of the cooperative NB currently markets the Nebtra Bank in the best capitalistic way: The current discount of 20 percentage points is announced on the personal loan business. For the bank customers of the Nebtra Bank, 4.7 percentage points of interest are paid instead of 5.9 percentage points. The offer is applicable for new transactions registered from CHF 5’000 and for increases from CHF 10’000 onwards, the bank says on its website.

The INfotesk company Loanery campaign is also in line with this. Borrowers currently benefit from a 0.75 percentage point interest rate, which is exactly the same as the rate charged by the Eodg. In practice, those borrowing 5,000 francs pay only 4962.50 francs back. In Germany, a new maximum interest rate of only 10 percentage points has been applied since the middle of 2016 for consumer loans (previously 15 percentage points).

Loanery should be encouraged to attract as much attention as possible to the consumer credit market in order to acquire new clientele. “The interest-free loan is aimed only at a small customer segment, which keeps the expenses for Loanery manageable.  The range of services provided by Loanery is indeed limited with some limitations.

On the other hand, the takeover bid relates only to loans with a value of CHF 5,000 and a duration of twelve calendar months, which further reduces the number of customers. Nonetheless, FinTask was literally overwhelmed with questions. Over the past 24h, around 200 applications have been submitted, about ten times the usual working days.

Consumer loans must always be undertsood as competitions,

Consumer loans must always be undertsood as competitions,

According to Mr. Sy, the number of new consumer loans is falling, and the dispute over new customers is getting sharper. Striking advertising campaigns for consumer loans must therefore always be understood as competition for market share.

For Loanery, this also means that, depending on the success of the campaign, you can imagine a repeat of a similar offer in the future. In order to prevent this competition from suffering undesirable excesses, a more aggressive application for consumer credit has been prohibited since the beginning of 2016. Among other things, no wedding loans may be advertised and advertisements tailored specifically to young people are considered as disapproving.

But especially in these areas, the Migratory Bank looks after the Nebtra Bank. She responded that the company meets all legal and industry-specific requirements.



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