Increased car loans drive personal loan drawdowns to new high

The value of car loans has increased by 39.6 per cent year-on-year according to the latest figures from the Banking & Payments Federation (BPFI).

The federation’s personal loans report for the third quarter of 2023 showed the value of personal loan drawdowns reached a new high of €552 million during the same period, the highest since the first quarter of 2020.

The number of car loans in terms of volume rose by 25.5 per cent year-on-year to 14,994, while the value jumped to €189 million.

The number of home improvement loans rose by 13.1 per cent to 14,419 while the value rose by 23.9 per cent to €174 million.

There were 23,991 loans for other purposes, including education, holidays and special occasions such as weddings, an increase of 7.1 per cent.

The value of green personal loans rose to €27 million in Q3 2023, an increase of 143.7 per cent, while the number of green loans increased by 119.3 per cent.

The average green loan was relatively high at €21,603 in Q3 2023, compared to the average loan of €10,336.