The new consumer loans reached an average interest of 6.96% in July, compared to the 6.83% recorded in May. The increase affects a type of financing used for purchases, renovations, vehicles, and other expenses that households cannot or do not want to face all at once.
With a rate close to 7%, financing 5,000 euros for two years means approximately 372 euros in interest, while extending the term to five years places the financial cost around 940 euros. These amounts are approximate and do not include possible commissions or other costs associated with the loan.
The term thus becomes a decisive variable. A lower monthly payment does not necessarily imply a cheaper loan, because maintaining the debt for a longer time increases the total amount allocated to interest.
The rise in the average cost also comes at a time when financing conditions remain relevant for household consumption decisions. Before comparing offers, it is not enough to look only at the percentage announced by the entity: the final cost can vary depending on the term, commissions, and contract conditions.
The interest percentage is only part of the loan bill. To compare different proposals, it is advisable to pay attention to the APR, which incorporates other costs associated with the operation and allows for a more complete reference of the financing price. Commissions can modify the final cost even when two loans present a similar interest rate. There may also be conditions linked to the contracted product that must be reviewed before accepting the financing. Therefore, the comparison should be made on the total amount that will be repaid and not only on the announced monthly payment. A lower payment may simply respond to a longer amortization period.