Rise in Small Loans: Schufa Reports Increased Use of Small Loans for Purchases on Credit

SCHUFA

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Consumers are increasingly using small loans for purchases on credit. According to the credit agency Schufa, four out of ten new installment loans were less than 1000 euros in 2022. Overall, the number of new installment loan agreements rose “rapidly” to more than 9.1 million in 2022, an increase of 30 percent. Younger people in particular used small loans. Schufa board member Ole Schröder warned: “Even the repayment of many small loans can quickly lead to financial overload.”