The value of personal loans taken out with Irish banks jumped 11.2% in value on the year in the third quarter of this year, led by consumers who spend a lot on holidays, special occasions such as weddings and education, as the economy continued to recover from the worst of the pandemic.
A total of 47,094 personal loans were drawn during the quarter, worth €442 million, representing an increase of 12.1% in volume and 11.2% in value year-on-year on the other, according to the Banking & Payments Federation Ireland (BPFI). .
The fastest growing segment was in the so-called other loans category, which includes loans for education, holidays and special occasions such as weddings, where the value of loans increased by almost 22% for reach 166 million euros, according to the data. The average loan in this category was €7,414.
The value of home improvement loans increased by 11.9% to 140 million euros over the year, while new car and auto finance facilities remained stable at 135 million euros.
“Today’s report shows continued growth in personal loan drawdowns, with volume and value increasing year-on-year for the sixth consecutive quarter, and with the highest volume and values reached since BPFI began to collect this data [the first quarter of] 2020,” said Brian Hayes, chief executive of BPFI.
The increase in levies comes even as households grapple with the cost of living crisis, with Irish inflation rising to 8.2% in September at the end of the quarter under review in the latest earnings report. personal loans.
The aggregate figures have been compiled from data provided by AIB, Bank of Ireland, Permanent TSB, Avant Money and KBC Bank Ireland. However, KBC stopped receiving applications for new loans in mid-July as it continued its plans to withdraw from the Irish market.