Spain is experiencing one of its historical moments of greatest political uncertainty, after almost a year without the formation of an official government due to the lack of agreements between the different parties that are opting for the country's Presidency. This situation is affecting the functioning of the economy in general to some degree and the loan sector is not escaping this mess. The surveys carried out periodically by the Bank of Spain reveal a slight decrease in the demand for credits and loans from households and companies to large banks. However, this decrease in demand is also favoring that the conditions of access to personal loans are softening a bit compared to previous periods, precisely because of the emerging competition in the sector.
Spain, in recent decades, has stood out among its European neighbors for
its debt ratio quite high, where most of the personal loans of the households were destined to the acquisition of a house. Although the real estate sector seems to be starting to rebound, since late 2014 mortgage loans have been experiencing a continuous, albeit slight, decline. It seems that the forecast for the next 2017 of the reactivation of the sale of homes will make individuals again need to apply for personal loans to be eligible for financing their home.
Regarding the cost of acquiring credits and loans in Spain, the current rate applied by banks is around 9-9.5%, which is somewhat above the average for our European neighbors. Apart from traditional banking, the opportunities to obtain loans in our country also include other types of entities that operate mainly over the internet and that are increasingly on the rise. Although the interest rate for the credits and loans offered by these companies may vary from one to another and also from the one offered by banks, the quick credit facilities they offer can offset the cost. In this way, with just one phone call, practically any individual can request a quick loan for small amounts, since the limit is usually set at around € 3,000, bypassing the tedious bureaucracy of large banks.
In short, the current situation of loans in Spain is marked by a reduction in the demand for them, both by households and companies, especially due to the political uncertainty of the moment. However, the conditions of access to loans and credits in our country are being more lax and the prospects of a rebound in the real estate sector for next year will also increase demand in the loan sector thanks in part to the increase of mortgages. An alternative way to obtaining fast loans and with fewer demands is offered by credit companies that operate mainly over the internet and that are increasingly increasing.