Loan interest rates already exceed 20%
Sofia. Consumer debt interest rates reached record-breaking highs after a series of increases over the last couple of months.
The annual expense rate of some consumer financing offers in BGN goes beyond 20% a year, moitepari.bg reports.
According to the online edition no income statement loans are the priciest at the moment accruing between 17.45% and 21%. Well, add to this different fees and commissions accompanying borrowing and servicing procedures and you end up with annual cost between 21.5% and 26.7%. Some banks have eve taken such loans out of their portfolios on grounds they were too risky to handle.
On the other hand, consumer loans not requiring income statement are slightly cheaper with interest rates between 17% and 19%, and have the same upper limits as the income statement debt options.
All in all seven banks have raised their consumer loan accruement rates in October, though some have been making it 2-3 times a month. Interest rates edged up by 0.15% – 3.12% depending on bank and loan type.
Mortgage loans have also seen a serious rise in costs – somewhere between 0.35% and 2.2%. Thus housing loan interests in EUR reached up to 10-11%, which makes 12% annual expense rate if we mind the fees and commissions.
Of course there are offers at 7.5%-8% coming from banks that are now making their move into the segment.
Bank experts believe loan interest rates are now where they were 3 years ago.
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Tags: Loan Rates