Forsa survey for smava: installment credits ahead of credit facilities

Image result for installment creditCar loan remains one of the most widely used forms of financing for German consumers. – Photo: shutterstock

The market and opinion research institute Forsa has asked over 1,000 borrowers for smava and has found that installment loans continue to be the most popular form of financing for private financing. Of all the individuals who have benefited from funding over the past 12 months, 23 percent chose this form of loan, followed by discretionary credits (12 percent), real estate loans (6 percent) and mortgage lending (6 percent).

Of those borrowers who opted for a installment loan, 20 percent even took more than one installment loan during the period.

Car finance continues to be number one

Most installment borrowers chose financing to buy a new or used car or motorcycle (41 percent). This is followed by financing for durables such as As computer, television, washing machine (36 percent) and expenses for the own home such. For moving, furniture or renovation (16 percent). 4th place proves the rescheduling (10 percent).

Further uses include the settlement of the disposition credit (9 percent), the financing of training and continuing education (4 percent), celebrations, travel and commercial use (1 percent each).

Installment loans Uses 2016 Men finance more often than women – and more

The typical installment borrower in Germany is 48 years old, married and has an average net household income of 2,950 euros (together with a spouse or partner).

In general, installment loans are more frequently taken up by men than by women (53 percent versus 47 percent). Men also use significantly higher sums of money (10,567 euros compared to 7,964 euros for women). In Germany-wide installment loans of 9,330 euros are taken with a term of 35 months.

About the study

The study was carried out between 15 June and 3 July 2016 on behalf of the online credit comparison portal smava (www.smava.de) by the market research institute Forsa. 1013 German borrowers were questioned.