Spanish personal loans bring their interest closer to the European average APR
According to the latest report of the Bank of Spain, the average APR of 2016 for personal loans in the Euro Zone was 6.27% , a percentage 2.2 points below the average APR of Spanish consumer loans. during the same year, which stood at 8.47% . However, despite the difference, there is a downward trend in the interest on personal loans in our country since the average APR for this year has been the lowest since 2005, when it was placed at 8 , 22%.
The importance of getting personal loans with low interest
It seems that the stimulus measures promoted by the European Central Bank almost a year ago are having an effect. The average annual APR of consumer loans in Spain has reached its lowest level for 12 years and with a difference of more than half a percentage point (0.56) with respect to the APR of 2015 when its average was 9.03% . This reduction in interest is good news for those of us who are looking for personal loans, since it represents a saving of several hundred euros in the financing we hire. We can currently find personal loans in our country that offer us financing below the European average:
|Gofindis Project Credit||Up to € 15,000||From 4.95% TIN (5.06% APR)||
|Personal loan from Cemetem||Up to € 50,000||From 5.95% TIN (6.12% APR)||
|Largebank Plan Loan||Up to € 15,000||From 6.74% TIN (6.95% APR)||
This small war of personal loans in which the different financial institutions of credit are currently predicted augurs a greater offer of promotions with more advantageous conditions for the users and a reduction of the interests during this year to reach the objectives of the European Central Bank.
How much would you save with consumer loans with European interests?
The difference between the interests of the average personal loans of Spain and Europe represents a significant saving in the financing that we hire. To see it more clearly, let’s suppose that we have two loans of € 10,000 to be returned to 5 years (60 months), without additional fees or bonds and with an interest of 8.47% and another with an interest rate of 6.27%. This disparity in the generated interest supposes a saving of more than 600 € in a loan with the same conditions.
|Quantity||Term||Interests||Generated interests||Total to pay|
|€ 10,000||60 months||6.27%||€ 1,175||€ 11,675|
|€ 10,000||60 months||8.47%||€ 2,301||€ 12,301|
Although the table is calculated based on interest, it is important to take into account the APR of personal loans in order to make an objective comparison when we are looking for financing for our projects since interest (TIN) does not include other associated expenses such as commissions or linkages, while the APR does include all the factors that affect the cost of these personal loans.