Trends in the credit market for consumption
The trend is recovering in 2015 even if the market is far from pre-crisis levels in 2008. The growth rate of household credit production reached 4.1% year-on-year at the end of September 2015, compared with 2.6% on the entire euro area. This is partly due to the good tonicity of the car market.
In 2015, consumer credit accounted for 31% of new credit production to households.
The average effective (in the narrow sense) consumer credit rate was 4.66% at the end of January 2016.
How to contract a credit for consumption
There are different forms of consumer loans, the main ones being:
- The loan allocated to a given expenditure (purchase of a vehicle, student loan), or not
- Revolving credit, formerly called revolving or permanent credit
- The personal loan
- Leases or lease with option to purchase
Specialized lending institutions and general banks are the main consumer credit distributors, in addition to the captives of car manufacturers and distribution group subsidiaries. But today, the YOUNITED model of retail credit platform connecting a community of lenders and borrowers on a mutual basis takes an important place in this market.
Creditstair, an innovative individual loan solution
As the only Internet personal loan platform in France with its own credit institution, Creditstair pursues several objectives with its community of borrowers and investors:
At Creditstair, borrowers benefit from:
– Fair and competitive rate credits. We only offer depreciable loans (no revolving credit), fixed rate and constant monthly payments, with no hidden costs. The rates offered are fair because they only cover the costs of studying Creditstair credits, and compensate investors for the risk taken.
– Exceptionally fast. Our loan application analysis technologies make it possible to finance a project in record time. The automation of certain credit application processing allows objective and instantaneous decisions, avoiding biased judgments and intrusive issues.
– Unparalleled transparency. Creditstair opens the black box of consumer credit. The borrower is informed in real time of each stage of the processing of his file, by SMS, mail and on his client area. The explanations on his credit and the progress of the processing of his file are provided in simple terms and understandable by our advisers. The loaned funds come directly from the investments of our Investors: Creditstair must rigorously study borrowers’ solvency and, in case of refusal, inform them instantly.
At Creditstair, investors benefit from:
– Exclusive access to a new asset class, directly and seamlessly financing households. We are opening household financing, previously reserved only for credit institutions, to our investors. The funds collected are instantly and fully directed to the borrowers. Comprehensive information on the profile of borrowers and the type of projects financed is disseminated continuously and in formats readable by all.
– High and regular returns. Historically, since December 2011, we have delivered high returns, outperforming traditional investment products. Our different funds allow for progressive returns according to the risk profile chosen by the Investor.
Creditstair is transforming the banking system to make it more fair and transparent. We are making consumer credit faster, simpler and cheaper, and saving more valuable and more rewarding.