Personal loan drawdowns in Ireland jump 20% to €414m

Banking and Payments Federation Ireland records the largest three-month national loan drawdown figure since 2020

The value of personal loan drawdowns for car finance in Ireland fell by 0.4% to €128m in the second quarter of 2022. 

The value of personal loans drawn down by customers of Ireland’s main banks in the second quarter jumped by more than 20% to €414m, new figures from the banking industry group show.

Publishing its quarterly personal loans report, the Banking and Payments Federation Ireland (BPFI) said the loans drawdown was the largest amount in a three-month period since it began publishing the data in 2020.

On an annualised basis, €1.5bn was drawn down in the 12 months ending June 2022, some 4.7% more than in the previous 12 months.

The BPFI report shows that €141m was drawn down in loans for home improvement projects, 12.7% more than in the same period of 2021.

This was the highest level since the data series began in 2020.

The value of personal loan drawdowns for car or auto finance, however, fell by 0.4% to €128m.

The value of loans for other purposes, which includes loans for education, holidays, and weddings, increased by 59.2% year on year to €146m.

The figures cover lending in the second quarter by AIB, Bank of Ireland, Permanent TSB, KBC, and Avant Money.

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It is the third consecutive quarter of growth in personal loan drawdowns. In the first three months of the year, personal loan drawdown activity rose in volume terms by 36.4% year on year and increased value terms by 32.9% to €384m over the same period.

In the first quarter, the average loan value rose in most segments, with the average home improvement loan up by about €400 to €11,590 and the average car loan by almost €400 higher at €11,285.