Cheap loans for everyone…maybe!
Newly proposed EU legislation is set to cheapen the cost of personal loans for borrowers within the UK.
Representatives of the European Union will later decide on a new proposal, which will allow members of union to offer reduced rate loans to consumers within other member countries. The initiative will essentially merge market information on the most common loan requests, creating new opportunities for almost ½ a billion borrowers across Europe.
As it currently stands, British borrowers are only able to apply for a loan from providers, which are based within the UK. However, if the legislation is passed, borrowers will (in theory) be able to source loans from providers, which are based within any EU member state. For the consumer, the move would greatly increase the availability of personal loan options, which would also increase the number of available cheap rate loans.
A spokesperson for the voting committee commented that the initiative would be extremely beneficial for consumers, as such a huge expansion of the market, would create greater competition for lenders, which would have the overall effect of driving down the average cost of credit.
