German consumers taking on more daily credit, banks say

Demand for credit in Germany this year has been mixed, with consumers taking out more loans, but some businesses cutting back on credit, Germany’s lenders reported on Friday.

In the first three quarters of the year, new business in consumer finance totalled €45.4 billion ($53.2 billion), exceeding the figure for the same period last year by 3.6%, according to the BFACH association, which represents the interests of credit banks in Germany.

In other surveys, many people have stated that they even finance daily expenses such as grocery shopping with credit.

In contrast, according to the association, new loans for machinery, vehicles or special technology decreased by 2.6%, with a volume of €8.0 billion.

There was significantly less demand for financing for commercial motor vehicles, BFACH said.

This reflects “the continuing uncertainty in the corporate sector,” the banking association said.

Managing director Jens Loa said: “In order for Germany to regain momentum, it now needs reliable framework conditions and clear growth impetus. Companies must have the certainty that investments are worthwhile again.”

In total, the 48 association members granted new loans worth €100.9 billion in the first three quarters of 2025, 1.6% more than a year earlier.

At the end of September, the institutions had in total lent €202.1 billion to consumers and companies.