Irish personal loans rose by 21.5 per cent on the year to a record quarterly figure of €670 million in the three months to September, driven by credit for cars and home improvements, according to the most recent Banking & Payments Federation Ireland (BPFI) personal loans report.
A total of 62,598 personal loans were drawn down during the period, representing an increase of 17.2 per cent in volume.
The number of car loans rose by 13.9 per cent year on year to 17,073, while the value of these loans increased by 21.4 per cent year on year to €229 million.
There were 16,194 home improvement loans during the period, up 12.3 per cent year on year. These were valued at €204 million, 17.6 per cent higher than the previous year, the BPFI said.
The average home improvement loan increased by almost €600 to €12,606.
“Our latest figures show continued strong demand for personal loans, with drawdown values reaching record highs in the third quarter across all categories,” said Brian Hayes, chief executive of the BPFI.
He said that the increase in car finance likely reflects the continued shift towards electric and plug-in hybrid electric vehicles which accounted for 24.2 per cent of new private cars licensed in 2024, according to the most recent Central Statistics Office (CSO) figures.
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