Consumer credit shrinks to €535 million in April
Loans for the purchase of new or used cars accounted for a large part of the total amount granted by banks and credit institutions during April.
Consumer credit slowed down in April, after the rise recorded in March. In a month in which the country made great strides in the deconfinement, the demand for loans was practically unchanged from the previous month, with the total granted by banks and financial institutions amounting to €535 million.
According to the most recent data made available by the Bank of Portugal (BoP), the amount granted in April was 0.4% below the 538 million recorded in March. Compared to April 2020, when the country was in confinement because of Covid-19, there was an increase of 161%.
Compared to March, April saw a drop in the granting of personal credit, both for Education, Health, Renewable Energies and Financial Leasing of Equipment, and Other Personal Loans, whose amount tends to be large.
In Other Personal Loans, almost €217 million were granted, a drop of -9.7% over the previous month, while in credit cards there was a growth in the amount financed to €89 million. It grew 6%, with the biggest increases in these loans being recorded in the auto sector.
According to the Bank of Portugal, focusing on Car Loans, only in Financial Leasing or Long-term rental, there was a drop in the amounts granted, compared to March: -15.4% to 16.29 million.
In the new car segment, loans grew 21.8%, to a total of €44 million, while loans for the purchase of used cars increased by 7.9% to €154 million. In the used-vehicle segment, the amount granted rose 6.8% to €6.85 million.
