E-bike loans have wind in the sails
The popularity of electric bicycles is increasing in Belgium, and so are the numbers of bicycle loans. Last year, Beobank gave 46% more than the previous year while Belfius numbers grew by 60%. On average, seven out of ten bike loans are contracted by cyclists over 40 for an amount of 3.200 euros.
Cycling has always been popular in Belgium, especially in the north of the country. However, in recent years, popularity has grown with the introduction of electrically assisted bicycles. These new generation bikes reduce the strength needed and ease up long journeys. E-bikes, however, tend to cost more than conventional ones. That is precisely where the bicycle loan takes its place.
The bicycle loan is a personal use credit marketed by banks at a favorable rate. For instance, BNP Paribas Fortis and KBC-CBC offer a 0,80% rate, which equals their hybrid or EV car loan. Beobank goes one step further with a 0,65% credit rate.
Still, in spite of the interesting credit rates, the Belgian north/south cycling disparity remains. At BNP, out of all bike loans, only 5% were given in the Hainaut, and 7% in the Walloon Brabant and Liège. Compared to that, Antwerp and East Flanders account for 20% of bike loans. Still, numbers are growing, as Brussels and Wallonia’s proportion grew from 20 to 25% in one year.
According to BNP, seven out of ten cyclists who contract a loan are aged over forty. At KBC and Belfius Bank, they’re even older: over 46. All in all, bike loans tend to interest the older generation, and the under-30s only represent 9% at Belfius.
On average, the cyclist borrows 3.200 euros at Belfius Bank, which represents an increase of 100 euros compared to last year’s numbers. For the rest, they borrow an average of 3.333 euros at BNP Paribas Fortis, and 1.990 euros at Beobank.