Personal loans soar to record level in second quarter

The volume and value of personal loan drawdowns hit a record high in the second quarter of this year, according to new figures from Banking and Payments Federation Ireland (BPFI).
They reveal there were 60,674 loans drawn down, valued at €641 million, between April and June, the highest volume and value recorded since 2020, when the data was first collected.
This represented a year-on-year increase of 7.6 per cent and 18.9 per cent in volume and value respectively, the BPFI said.
The figures show the average loan value rose by almost €1,000 to €10,560.
While all loan categories experienced growth, there was a sharp uptick in the number of car or auto finance loans, which rose by 12.4 per cent year on year to 17,794 in the second quarter, while the value of these loans increased by 18.9 per cent year on year to €224 million.
There were 16,086 home improvement loans, up 1.7 per cent year on year, the BPFI said. These were valued at €202 million,17.5 per cent higher than the previous year.
The number of loans for other purposes, including education, holidays and special occasions such as weddings rose by 8.3 per cent year on year to 26,794 in the second quarter. The value of these loans rose by 20.1 per cent year on year to €214 million.
The value of green personal loans rose to €30.1 million, an increase of 2.9 per cent year on year while the number of green loans also rose by 5.1 per cent over the same period to 1,314. The BPFI said the average green loan was more than twice the value of an average personal loan at €22,933.
BPFI chief executive Brian Hayes noted the figures came as the Central Bank of Ireland reported that there was almost €17.9 billion in outstanding consumer loans.
“Within that, loans with terms of over one and up to five years increased to more than €10.9 billion, the highest value since July 2012,” he said.