Pay attention! Borrowing money, costs money



Consumers will also pay too much for a loan while 'sleeping' in 2016


Despite the fact that loan rates fell slightly in 2015, after years of inactivity, most consumers still pay too much. This is the finding of comparison site The interest rates for personal loans and revolving loans are now on average at 7 percent. This is 1 percent lower than at the beginning of 2014. "But that is totally out of proportion to the savings and mortgage interest rates, which have almost halved in this period," explains Amanda Bulthuis of

Rabobank and ING, two banks with a large market share in loans, have the highest interest rates for personal loans and revolving loans. For a personal loan of USD 10,000, ING charges 9.4 percent interest and Rabobank 8.0 percent. This means that many people still pay far too much for their loan.

ABN AMRO, the third major bank, did reduce borrowing rates significantly in 2015. At the moment you pay 6 percent interest at this bank for a personal loan of 10,000 US dollars.

Lack of competition

The fact that loan interest rates remain so high is mainly due to a lack of competition in the loan market. “There are hardly any newcomers on the market. This was also the case for mortgages for years, but now that more and more pension funds, insurers and investors are investing in mortgages, you see that banks are forced to lower their interest rates as well. There are no such initiatives on the loan market, ”explains Bulthuis.

Consumer too loyal to the major bank

In addition, the loyalty of customers to their major bank plays a role in the high loan interest rates. Research by De Nederlandsche Bank (DNB) shows that people hardly ever switch for a personal loan or revolving credit. Smaller providers and lenders are also hardly taken into consideration with a new loan. The major banks together own 80 percent of the market. And as long as these people do not switch, there is little reason for banks to lower their borrowing rates.

“As a consumer you also have a role to play in lowering borrowing rates,” says Bulthuis. “Don't look directly at your own bank, but also consider smaller lenders. The interest rate differentials are large, so there is a lot to be gained. ”


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