German credit market study reveals interest rate disparities

A study conducted by the German Institute for Service Quality (DISQ) highlights significant differences in interest rates and flexibility among installment loan providers in Germany. The investigation, commissioned by ntv, compared various direct and branch banks, finding that online offers are not inherently cheaper than traditional branch services.

While branch banks scored slightly higher in overall conditions (79.3 points for online branch services versus 78.3 points for in-branch), the lowest interest rate identified in the test was found through a branch distribution model for an electric vehicle loan exceeding 25,000 euros.

Key findings indicate that interest rates vary substantially based on loan amount, term, and purpose, often depending on individual creditworthiness. The study also noted major discrepancies in contract flexibility, specifically regarding the ability to increase or decrease monthly installments and adjust payment dates. Bianca Möller, Managing Director of DISQ, noted that a thorough comparison should include direct discussions with banks to uncover personalized conditions.