What do the Germans take out loans for?


What do the Germans take out loans for?

Woman with glasses and hat in front of a painted wall

The Germans are currently more willing to take out loans to fulfill their wishes or make important purchases. But what exactly do you finance with a loan? 

In times of low interest rates, it is known to be particularly beneficial to finance larger purchases with a loan. This is also reflected in the consumer credit index, which the Duresearch institute (DI) calculates twice a year for the banking sector association. It is currently at 129 points, the highest since its launch five years ago.

The index is composed of the acquisition planning and the financing planning of the respondents. Overall, in its representative study, DI surveyed 1,904 people as to which major acquisitions they are planning in the next twelve months and whether they would like to finance them through a loan. The result: With the acquisitions a stable development is to be expected, the financing readiness is even slightly rising. The favorable lending rates are making themselves felt and more and more consumers can imagine this form of financing.

Cliché of the darling child of the Germans at least applies for loans

Many respondents are willing to finance a new car through a loan : 48 percent can imagine that for a new car, 37 percent for a used car. This makes car buying the most frequently used purpose for a loan. However, only four percent (new cars) and seven percent (used cars) of German citizens are planning this large acquisition for the coming year. It is striking that the readiness for financing in used cars has risen significantly more sharply compared to the previous year than for new cars.

Home sweet home, luck alone: ​​Renovation and furniture increase

In third place are furniture and kitchens when it comes to the willingness to borrow. 19 percent want to set themselves up with a loan. Even for a renovation or a move, nine percent can imagine using a loan. In these two areas, financing planning has risen sharply, so especially many Germans are currently willing to provide a home loan for a comfortable living. For purchases in the field of consumer electronics, significantly more consumers are now willing to take out a loan than last year.

On holiday, the Germans are stuffy

A larger holiday is a potential use for a loan only for two percent of respondents. Although the willingness to finance has risen slightly, it is still the area where very few consumers choose to take out a loan. Although 26 percent of respondents plan a larger holiday in the coming year, but this is ironically spared in most cases. According to a study by the bank, holiday travel is the most frequent savings target for Germans.

Unexpectedly, apparently also comes with larger purchases often

Asked by opinion pollsters if they plan to make larger purchases in the next 12 months, 48 ​​percent said yes. More than half of the respondents are therefore not expecting more spending in the coming year. A look back, however, shows that things often turn out differently than expected: in relation to the past twelve months, 61 percent said they had made larger purchases. Especially with large household appliances, a significant part of the purchases are unplanned: Almost half of the respondents said they spontaneously bought household appliances. After all, it is seldom possible to predict when, for example, the washing machine will give up the ghost and have to be replaced. It is to be expected that the actual purchases and thus also the taking out of loans will ultimately be higher than the consumer credit index suggests.


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