Consumer credit: growth slows but remains strong

 

Despite signs of slowing, the annual growth of consumer credit continues in September at levels still impressive, according to the latest figures published by the Bank of France. The evolution of the consumer credit sector is in line with the global credit market (habitat + consumption).

Nearly 6% growth

Nearly 6% growth

In September, the outstanding consumer credit market rose by 5.7% year on year, a sign of the dynamism of the sector, even if it remains a little worse than in previous months (+ 6.0% in August, + 6.2% in July).

In terms of volume, “consumer credit” is worth 165 billion euros in September. In comparison, we are still far from the $ 938 billion home loan. This is explained by the amounts granted for a mortgage.

What about “new credits”?

What about "new credits"?

As for the production of new consumer loans, they tend to stabilize around 5 billion euros for several months (5.1 billion in September). Note that the Banque de France only includes in this amount depreciable loans, ie conventional loans with maturities established from the outset (for example a personal loan, an assigned credit, a car loan, etc.). 

The monetary institution therefore does not take into account the revolving credits in its statistics. These consist of a sum of money made available to the borrowers. As long as they do not use the amount allocated, they will not pay anything. In summary, the repayment starts as soon as the loan is used, and the interest only applies to the amount used.

What is the average rate in consumer credit?

What is the average rate in consumer credit?

Unsurprisingly, the interest rates granted are higher than those of real estate loans: 3.78% on average, against 1.65%. But the interest rate of consumer loans tends to decline:

  • 3.93% in April;

  • 3.94% in May;

  • 3.83% in June;

  • 3.86% in July;

  • 4.05% in August.

To know the current consumer credit rates, do not hesitate to consult our barometer.

A credit market that continues to grow

A credit market that continues to grow

Concretely, consumer credit is on the same trend as global bank credit: a sharp increase in September (+ 6.1%) with a slight slowdown compared to previous months (+ 6.2% in July and August). In volume terms, the market is worth 1,139 billion euros.

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