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Consumer loans: a turnaround in the first half

An increase of 1.1% in the first half of 2014, is what emerges from a study published by the ASF (French Association of Financial Companies) on the production of consumer credit. This is a ” modest ” progression, but it marks a break in a sector that has been suffering since mid-2011.

The ASF nevertheless avoids any euphoria. ” The activity is very weak because at the end of June, cumulative production over the last twelve months was still -22.1% lower than the peak reached in the summer of 2008 “.

Different variations according to the types of sector

Different variations according to the types of sector

Financing of home equipment (household appliances, multimedia equipment, furniture) did not really contribute to the overall rise in the first half. And for good reason: with 1.3 billion euros recorded over this period, production was down -8.8% compared to the first half of 2013. A positive point however: the decline seems to slow down, from -10.1% to 1st quarter at -7.5% last spring.

Renewable credits continue to decline

Renewable credits continue to decline

Another sector is falling, it is the revolving loans. They are down – slightly – by 0.8%, to 5.3 billion euros. This is the twelfth consecutive semester of decline.

Personal loans up

Personal loans up

Personal credits go the other way. This loan, which finances any type of project without justification, records an increase of 2.5%, to 5.7 billion euros.

New cars boost consumer credit sector

New cars boost consumer credit sector

The ASF is interested in the financing of new vehicles. Observation: the sector is working well. The association observes an increase of 5.3% over the first six months of the year to 2.9 billion euros. Many operations are financed through the LOA (lease with option to purchase), the amount of which is now almost equal to that of conventional credit financing.   “.

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