Verivox is a leading German price comparison platform that searches for the best deals for customers in industries ranging from energy and telecommunications contracts to insurance and financial products.
As such, the company also has insight into the credit sector in the European powerhouse. Any adult living in the country with a bank account is in principle eligible for a line of credit.
In its own survey, Verivox compared 11 nationalities to see which one is more likely to get loans from national lenders. To do this, it analyzed the installment loan applications processed through its services between June 2018 and May 2019.
Lenders love Greeks
The # 1 result that emerges from the study is that lenders are happiest to provide loans to Greek nationals living in Germany. Of all Greeks based in Germany who applied for a loan within the specified period, 73% received an offer from one or more banks. Surprisingly, this is slightly more than the rate of 72% among native German applicants.
“At first glance, the results may come as a surprise to many,” Oliver Maier told DW. He is the Managing Director of Verivox responsible for the company’s financial services comparison division.
“The question of knowing if a loan is offered and granted, and how much is granted for that matter, depends largely on the financial situation of the clients, that is to say their creditworthiness, an important criterion being the monthly income. net of people, ”Maier added.
The study confirms that German loan seekers recorded an average monthly net income of € 1,952 ($ 2,162), slightly more than Greek nationals in terms of net income.
“Among all of Verivox’s clients, German and Greek borrowers had above-average incomes, but based on the numbers we have, we cannot really say why Greek nationals living in Germany received even more income. loan offers from the banks than from the Germans, “said Maier conceded.
In the table of nationals of the 11 countries studied, Bulgarians, Poles and Hungarians faced the biggest obstacles when applying for a loan, with around three-fifths of all requests not resulting in a bank offer.
Big loan or small loan?
One is inclined to assume that those with above-average net income would also invariably seek above-average loans. But the Verivox study provides no evidence.
“The customers who are preferred by banks because of their creditworthiness are not automatically the ones who apply for or take out the largest loans,” Maier explained. “Our most recent study shows that this was not the case during the period under review.”
The highest installment loans of 19,700 euros were in fact applied for by Turkish nationals residing in Germany. Native Germans asked for just over € 15,000 on average – a little below the general average.
However, previous surveys indicate that people with higher incomes tend to take larger loans. “A closer look at Germany reveals that the highest loans are generally given to above-average employees in the better-off southern German states of Baden-Württemberg, Bavaria and Hesse,” Maier pointed out.
Frequency of application
Verivox also looked at who wanted a loan most often among all of the customers in question. It appeared that there was no direct correlation between the creditworthiness of clients and the frequency of loan applications.
People in Croatia apply for loans more often than the other 10 applicants, although they are only in the middle of the table when it comes to their average net income. Greek nationals do not apply for a loan very often, their frequency of application being around 32% lower than the average.
The list of 11, from first to last in terms of loans requested, was Greece, Germany, Bosnia and Herzegovina, Italy, Serbia, Croatia, Turkey, Romania, Hungary, Poland and Bulgaria.