Auto Loans Lead Modest Jump in Consumer Lending: Fed

Demand for consumer loans have increased somewhat, with auto loans showing the largest increase, according to the Federal Reserve’s most recent quarterly survey of loan officers released today.
Overall, the Fed’s April survey saw “modest net fractions” of banks reported having eased their lending standards and seeing stronger demand over the past three months. In cases of people needing a new car, they may not be able to afford it but it is a necessity that they can’t go without, an example of this is needing it for work. They can pay this off by doing online installment loans, whereby they pay in several installments online so they can see exactly what they are paying at a fixed rate and know how this fits in with their monthly bills.
Standards on residential mortgage loans and home equity lines of credit (HELOCs) were about unchanged, compared to the previous report in January.
However, the latest survey indicated a moderate strengthening in demand for residential mortgage loans.
“With respect to consumer loans, moderate net fractions of banks reported that they had eased standards on most types of these loans over the past three months,” the Fed reported.
More encouraging was the Fed’s update on commercial and industrial loans, or “C&I loans.
“Moderate to large net fractions of domestic banks eased many terms on C&I loans to firms of all sizes, with most indicating that they had done so in response to more aggressive competition from other banks or nonbank lenders,” the Fed said.
See the Fed’s full report.

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