Did you know that the interest on installment loans (also known as the personal loan) is currently lower than the interest on the revolving credit? That is quite remarkable, because previously borrowing money with the revolving credit (DLK) stood for the most advantageous form of borrowing.
What is cheaper: Loan on installment or revolving credit?
In the past there was no doubt that the revolving credit was cheaper than the installment loan. The interest on the DLK was always significantly lower. If the interest rate level rose, this interest would go up. And that is why the interest rate was set lower than the fixed interest rate (which still applies to personal loans). At this moment, however, many things have changed! Because: The fixed interest rate for the cheapest loan on installment is lower than that for the cheapest revolving credit … Unique!
Interest rate DLK no longer decreases
Put the interest rates of both forms of lending side by side and you will see that since a few years the interest rate for the revolving credit has not decreased since 2016 and that of the personal loan! In fact, the interest rate of the DLK has increased slightly since 2016! In December 2018 the interest rate of the cheapest PL in the graph is below that of the cheapest revolving credit … It should be clear which form of borrowing is the cheapest