In addition, they are given at different conditions by dealers, although there is a much more transparent and cheaper construction. Due to increasing retail consumption, it is in the customers’ hands to decide to eliminate what are essentially punitive horror rate loans.
When wages increase, household purchases generally start, and even the consumption-boosting segment of the credit market can gain momentum. However, it does not matter what the price is for the latter – the buyer has to be in the right position, because he can still run on 30-40 percent loans even though he shouldn’t.
They are spending more and more
This is due, among other things, to the fact that the population is replenishing their previous deferred purchases, and the average salaries have increased – in simplified terms, more money to buy. In addition to gaining weight from retail, Internet commerce is curving at a much higher rate.
According to KSH data , Internet and parcel traffic has been expanding by two digits for months, month after month. This is not surprising anyway, as there is always a low base – that is, the previous year’s turnover – and more and more friends are shopping online.
Loan rates on the ceiling and on the ground
The expansion of retail trade indirectly encapsulates one of the segments of the credit market, namely loan and personal loan schemes, which are the easiest way to finance a purchase. However, it is very important which one we choose.
Namely, commodity loans form a special sub-market in domestic lending. Primarily because they did not necessarily follow the general trend and in many cases, despite the fall in the central bank base rate, they kept their interest rates and their APR on the ceiling. According to our outlook, several stores are trying to salt out credit to shoppers at 35-40 percent interest or thm. The ceiling in this case is not exaggerated either, because under the current interest rate ceiling, the maximum thm for riskier (unsecured) loans – overdrafts, commodity loans, personal loans, credit cards – may be up to 39 percentage points above the central bank base rate.
The difference between an average personal loan of less than 10 percent thm and an average but extremely expensive 39 percent loan of thm can be as much as 25-30 percentage points. This can cause the customer to spend thousands of dollars or even tens of thousands on monthly installments.
Same with practice
For the purchase of, say, the $ 375,000 TV set for the Olympics (excluding the $ 75,000 deductible), they give a $ 300,000 commodity loan, according to the bank’s online loan calculator. In the case of a 36-month maturity, it is HUF 13.4 thousand per month, so a total of nearly HUF 483 thousand has to be repaid.
According to Good Finance’s personal loan loan calculator , the best of the 300 thousand forints personal loans taken for 3 years can be taken at 15-17 percent thm, which puts the debtor on a 9.7-10.5 thousand forints monthly repayment. and the amount will be HUF 370-380 thousand.
In the case of a 39-40 percent thm commodity loan, the monthly repayment may exceed 13 thousand forints, and the total repayment is more than 480 thousand forints – the difference is 100 thousand for 3 years.