Production of credits: Over 10,000 clients funded

Good Finance reached 2 billion dollars of credit production in 2020. This record production is linked to the environment of very low rates contributing to the solvency of borrowers. What is the national production? How is this record production explained? What are the prospects for 2019? Analysis.

In 2020, loan production from Good Finance, a network of 150 credit brokerage agencies, reached 2 billion dollars for the first time, up 28% compared to 2018. This record production is linked to the context of low-interest rates. which led to a sharp increase in demand for credits and renegotiations. It is also explained by the opening of 30 new branches and by the recruitment of 190 employees within the network, with a total now of 500 employees.

Over 10,000 clients funded

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In 2020, the credit production of the 150 franchised agencies of the Good Finance network reached 2 billion dollars, against 900 million in 2014 and 1.5 billion dollars in 2018, representing a growth of 28%. More than 10,600 loan files have thus obtained financing from the broker Good Finance (compared to 8,700 in 2018), 30% of which as part of a loan renegotiation (35% in 2018).

“We are very satisfied to have reached the threshold of 2 billion dollars in loan production, an unprecedented figure since the creation of the Good Finance network in 2008. If the start of the year was rather sluggish, the rate context low, the widening of the zero-rate loan, and the craze for the Pinel device have boosted our activity.

But it is also and above all thanks to the extension of our network with the recruitment of 30 new franchisees and 190 financial advisers this year that we were able to achieve our objectives ” analyzes Jérôme Robin, president of Good Finance.

Record mortgage production in 2020

Record mortgage production in 2020

At the national level, 2020 should also be a record year in terms of credit production. According to the Banque de France, at the end of October, the cumulative production of new loans reached 188 billion dollars, a figure up by 10% compared to the same period in 2018. “The production of new mortgage loans could reach 230 billion dollars in 2020, a new record, well above the 200 billion credits produced in 2018.

No one could have expected a rate cut of almost one point over a year and the new wave of renegotiations loan resulting from it… For 2019, even if we are still receiving the latest requests for redemption of latecomers, the activity should be supported only by acquisitions, allowing a return to normal on the processing times in banks ” foresees Sandrine Allonier, Director of Bank Relations for Good Finance.

Banks finance 150 homes per hour

Banks finance 150 homes per hour

According to the Banque de France (Stat info credit to individuals at the end of November 2020), outstanding home loans (which includes new loans) amounted to 891 billion, an increase of 3.9% compared to to 2018. Since the start of 2020, banks have issued more than 22 billion dollars in new loans each month. And even 27.5 billion dollars in November 2020. The results for December are being processed.

“Banks finance 150 homes per hour in France,” according to the French Banking Federation, in a study published in January 2019.

Note that a quarter of the loans are granted to first-time buyers.

And 30.2% of households benefit from a home loan according to the January 2020 Household Credit Observatory (CMO).

Absolute record low rate in 2020

2020 ended on an all-time high, despite a slight rise in rates at some banks in December. Rates remain historically low: 1.56% according to data from the Banque de France, with regard to new mortgage loans, all amounts, long term and at fixed rates, at the end of November 2020.

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