GE Money cuts home equity loan interest

GE Money, the retail financing unit of US General Electric, has cut, by as much as a percentage point, the interest rate it levies for euro-denominated home equity loans, thus falling into line with the market trend. Thus, the company reduced by 0.75% the interest for home equity loans, with the interest now being made up of the six-month Euribor plus a fixed margin starting from 6.85%. The second personal loan product of GE Money is the debt consolidation loan, where interests were cut by 1%, to six-month Euribor plus a margin starting from 7.2%. “(…) I believe in the potential of debt consolidation lending as on the one hand people with loans are increasingly more interested in paying a single instalment, ideally of a lower value, and on the other hand the number of Romanians with two or more unsecured loans and owning a property that can be mortgaged is high. Hence, there’s the need, interest and a potential market for this product,” stated Paul Panciu, general manager of Domenia Credit. Moreover, by late May, GE Money is trying to attract clients on the segment of home-buying loans, levying an interest that is 1% below the standard rate, i.e. Euribor plus 5.5%.