For the first time, an installment loan with negative interest rates is being offered on the German financial market. Responsible for the so-called negative interest loan is the comparison portal smava, which mediates the loan. Customers who take out a loan amount of € 1,000, have to pay back because of the effective annual interest rate of -0.4%, only 994 € to the bank and thus save money.
What’s behind the negative interest loan
How can it be that consumers receive money for taking out loans ? With the loan, the comparison portal wants to sensitize consumers for the price differences between cheap online loans and expensive branch loans and encourage them to compare different loan offers before concluding a loan. A large proportion of consumers still pay too much for credit, as they often do without a comprehensive settlement. In addition, smava draws a clear statement with the negative interest loan at the time of the zero interest rate policy of the European Central Bank (ECB).
Impact of zero interest rate policy
Since March 2016, the ECB’s key interest rate has been oo%. For a long time, savers could benefit from investing in savings accounts, the overnight money or time deposit account. Today, this is not the case because of low interest rates. Savers are increasingly asked to pay today. For example, account maintenance fees will be increased, fees for transfers or cash withdrawals will be charged. Recently, the first banks are already demanding negative interest rates on private saver investments. Although profitable savings are becoming increasingly difficult, borrowers can look forward to the most favorable interest rates for quite some time. Borrowing money has never been so cheap.
Negative interest rates on installment loans in response to the zero interest rate policy
With the introduction of the negative interest rate on installment loans, borrowers are thus rewarded for the completion of a installment loan. In times when saving money is paid, borrowing money is now rewarded with a financial savings.
Any consumer who has sufficient credit can benefit from the negative interest loan. Since the purpose of the negative interest loan is exempt, the negative interest loan is particularly well suited to replace a possibly existing disposition credit.