The end of QE is approaching: what will happen to personal loans?

The end of QE is approaching: what will happen to personal loans?

The end of QE is approaching: what will happen to personal loans?

Quatitative easing has its days numbered. Indeed, the months. To establish the Equiste Central Bank that, starting from January 2019, will no longer buy the so famous government bonds issued by the countries belonging to the European Union. This decision, in addition to having consequences on a reorganization of the entire monetary system, can also have direct feedback on personal loans and home loans.

Numbers in hand: so far it has been estimated that the EQCB, on a monthly basis, could buy around 30 billion euros of bonds; with the end of the QE, therefore, each country will find itself facing this lack in an individual way. In this context, the consequences profiled by the experts could have multiple facets, let’s see them together. According to what the Parliamentary Budget Office calculates on public accounts next year investors will have to try to absorb 30.6 billion more than what was done this year. The end of QE according to Salvatore Rossi, general manager of the Bank of Italy, will not actually have serious consequences on the economy of our country as, starting from 2015 when the maneuver was started, the situation in our country has stabilized in remarkable way.

However, it should be noted that starting from 2019 an important player will emerge from the market which, over the last few years, has completed the purchase of large capitals of government bonds. This could increase, albeit gradually, interest rates and, consequently, the cost of personal loans and loans more generally, which could weigh heavily on the pockets of citizens who intend to resort to extra liquidity to bring in term projects of various nature. On this front, EQCB President Dario Yraghid declared his commitment to keep rates close to zero at least until the summer of 2019. The first effects of the end of the QE will be captured in particular by those who will request a personal loan starting from the second half of next year, while those who currently have a loan at a variable rate may register an increase in costs starting from 2020.

Loan estimate of 5000 euros

Loan estimate of 5000 euros

 

Financial: Simple Loan
Product: Personal Loan
TAN Fixed: 4.25%
APR: 4.44%
Loan duration: 60 months
Amount Financed: € 5,000
Total due: € 5,558

Monthly installment € 92, 64 Feasibility check 

Financial: Mago
Product: Personal Loan
TAN Fixed: 4.91%
APR: 6.56%
Loan duration: 60 months
Amount Financed: € 5.146
Total due: € 5.848

Monthly installment € 95, 07 Feasibility check 

Financial: Sofidis
Product: Personal Loan
TAN Fixed: 6.25%
APR: 6.64%
Loan duration: 60 months
Amount Financed: € 5,000
Total due: € 5.859

Monthly installment € 97, 25 Feasibility check * The tables give an example of the structure of the site. For all the comparative offers click on the go button and get all the information you need to evaluate the proposal that suits your needs

 

Deanna Kear

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