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Personal loan drawdowns jump 12%, BPFI report reveals

By November 11, 2022No Comments

Just over 47,000 personal loans were drawn down in the third quarter of this year, up over 12% in volume and 11% in value when compared to the same period last year.

The figures from Banking and Payments Federation Ireland (BPFI) show that both the volume and value of drawdowns between July and September reached the highest level recorded since BPFI started collecting the data.

The average personal loan stood at €9,376, down slightly on the previous year.

Looking at the different loan types, just under 12,000 car loans were drawn down during the three-month period worth €135m.

The figures show that the number of car loans drawn down fell by 4.4% on the same period last year, while the value stayed the same.

The average car loan increased to €11,331 – the highest value since the series began in 2020.

Meanwhile, 12,746 personal loans worth €140m were drawn down for home improvements during the third quarter.

This is 8.4% higher in volume terms and just under 12% higher in value terms when compared with the same period last year.

The average home improvement loan was €10,994, up from €10,652 last year.

Today’s report shows that the biggest and fastest growing segment was ‘other loans’ category which includes education, holidays and special occasions such as weddings.

22,403 such loans were drawn down over the three-month period, up 26% in volume year-on-year, while the value of these loans rose by just under 22% to €166m.

The average loan in this category was €7,414, down from €7,678 last year.

“Of note is the jump we have seen in the number and value of loans being taken out for other purposes such as holidays, education and special occasions with home improvement loans also on the rise,” said Brian Hayes, the chief executive of BPFI.

“By contrast however we can see that the volume of car loans has dropped with the value remining static, however we did see an increase in the value of the average car loan to €11,113,” he added.

Article Source: Personal loan drawdowns jump 12%, BPFI report reveals – Gill Stedman – RTE

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