Summer is a time synonymous with many things: vacations, family, travel, good weather, etc. It is also synonymous with sales, and not only in stores and shopping centers. This 2019, June and July have confirmed a downward trend in the average interest rates (APR) of personal loans, reaching their annual minimum value.
That the APR averages 8.18% is good news as it reflects the good health of personal loans in financial markets and the hope of sustained growth in demand for this type of product. The Bank of Spain registered a 4% drop in price compared to previous months and more than 6% compared to January, when the outlook was not so positive and interest rose.
The interest rate on credits and loans, which is included in the APR together with the rest of the product costs, also fell in those months. According to the Bank of Spain, the average rate of loans for personal consumption that month was registered at 7.07%, while a month before it was 7.48%. This is the lowest value of the entire year 2019.
This second quarter of 2019 has brought large reductions to the cost of online loans, and many entities have already reflected these changes in their products to offer them at minimum costs so far this year. The summer logic is imposed, also, in many private and banking entities alike.
Over the next few months, more variations are expected to face the second half of 2019, with more entities jumping on the bandwagon. This is irrefutable proof of the importance of comparing products and entities whenever financing is sought and there are doubts about which is the most successful.
Online loans can be requested 100% online without paperwork or changing banks, so the consumer is free to compare, jump from one entity to another and look for the most aggressive offer or that best suits their specific needs.