Banks are betting everything on the back-to-school period, a decisive time for winning and retaining future customers. To attract young people, they don't hesitate to offer loans with attractive rates and deferred repayment terms, enabling them to repay the capital only once they have entered working life.
A rise in the cost of back-to-school and student life
In its latest barometer, the Fédération des associations générales étudiantes (FAGE) notes an increase in the cost of the new academic year. The average cost for a non-scholarship student is 2392 euros, up 1.32% on 2020. This is due in particular to the need to purchase masks and hydro-alcoholic gel.
The rise in the cost of student living is most obvious in the Île-de-France region, where the Union nationale des étudiants de France (UNEF) estimates it at 2.50% in 2021-2022, or 247.38 euros more per student per year. This difference is mainly due to the rise in rents and transport fares. Paris tops the list of the most expensive student cities, followed by Nanterre and Créteil.
Promotional offers for students at banks
Aware of these rising costs, banks are taking advantage of the back-to-school period to make professional offers to students. In the current climate of health uncertainty, many students are likely to turn to the banks for help (housing found at the last minute, costs associated with going back to school in person...). By targeting young people and future graduates, they can secure a customer base for the coming years.
Since June, there have been a growing number of announcements of student loan offers at attractive rates. La Banque Postale, for example, is offering a loan at 0. 1% for amounts from 1,000 to 10,000 euros. For amounts over 50,000 euros, the bank offers preferential rates of 0. 7% for partner schools, with repayment terms of between 12 and 120 months. La Banque Postale has also signed an agreement for a state-guaranteed student loan for young people who do not have a guarantor. Instead of a personal guarantor, the public body Bpifrance guarantees 70% of the loan amount on behalf of the borrower.
The Caisse d'Épargne has launched a Coup de pouce loan offer at 0% for loans of between 500 and 5000 euros. With no application fees and optional insurance, the offer is valid until December 31, 2021. Other banks, such as LCL and Banque Populaire, have loan offers specially designed to support young people during the health crisis.
As a result, the student market remains hotly contested, even if competition from neobanks is limited. Experts estimate that nearly 10% of the 2.8 million students who will be returning to school this year will take out a loan.